Head of European Finance and Capital Markets, Nick Shaw, and Head of European Private Credit, Hadrien Servais, were interviewed by 9fin about the convergence of the BSL and private credit markets and the impact this is having on financing transactions. Commenting on this trend, Nick observed, “Convergence is clearly observable, but it is more nuanced than often presented. Private credit has moved decisively into territory historically dominated by the broadly syndicated loan (TLB) market and, in some instances, high yield bonds. It is now a credible option for large-cap financings, offering execution certainty, speed, and documentation flexibility.”
Among the topics covered, the Q&A article examines the evolution of the investor base shaping BSL and private credit, the limits of documentary convergence, the rising prominence of club deals, and the impact of pricing flexibility on private credit in a high interest environment.
Hadrien observed, “One differentiating factor for private credit lenders is their ability to agree PIK interest, which syndicated TLB lenders have not been able to accommodate yet, at least not on a similar scale. The added value for a borrower is undeniable. The strategic ability to PIK interest in the first years, even partially, allows for better cash flow management and for more revenues to be reinvested into the business or for further growth.
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