Europe’s Junk-Rated Firms Get Cash from Owners as Refinancing Pressure Mounts
- PE firms like Silver Lake and Brookfield are injecting equity
- Equity checks ease refinancing deals as maturities loom
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Buyout firms are writing increasingly fat checks for their companies as a way to help pull off difficult debt refinancings and soothe the nerves of credit investors.
Brookfield Asset Management Ltd, Silver Lake Management LLC and EQT AB are among those that have injected extra cash into the firms they own as part of an agreement to roll over debt maturities. It’s a trend that looks set gain momentum, especially as more companies struggle to cope with soaring borrowing costs and a slowing economy.