News & Events

Patrick Ryan, Head of the Firm’s Banking and Credit Practice, was quoted in an article titled, “Antitrust Poses Financing Challenges for PE,” which was published by The Deal. The article discussed how the FTC and the antitrust division of the DOJ are increasingly scrutinizing deals involving private equity firms and their portfolio companies. With reference to the potential impact of extended antitrust review from a financing perspective, Patrick noted that, in the bank loan market, “A ticking fee can be enough to hold together a syndicate for a fairly long period of time. In some deals, the ticking fee can be the economic equivalent of the fully drawn cost of the money.” He further explained how deals with an extended period between signing and closing raise distinctive issues for direct lenders, who are playing an increasingly important role in funding PE deals, stating that, “…for a direct lender, holding capital in abeyance might be an issue because it ties up capital for a longer period. Holding unfunded commitments for a large period of time is not something private credit funds have historically done over time.”

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