Anything that catches on in the US market ultimately makes it over to Europe as well. Financing techniques applied in private equity are no exception. The roots of private equity lie very firmly in North America, as do those of the principal financing tools used by it. The most recent example of a US leveraged finance instrument that is starting to make an impression in Europe is the second lien loan.
The appeal of second lien
As the funding package for Bain's Brenntag acquisition demonstrates, second lien loans may be the latest US debt instrument to finally become established in Europe. The Deal Mechanic looks at how it fits into the capital structure
