'Dividend recaps are back for European LBOs', ratings agency Fitch loudly proclaimed last week. With IPO markets largely shut and strategic buyers still ultra cautious, private equity sponsors are short of exit options – so many will be looking to take advantage of improved conditions in the high-yield bond and loan markets to recapitalise legacy assets and take some chips off the table, the ratings agency said.
Why criticism of dividend recaps misses the point
It's leverage people should be talking about.
