Four years after a government crackdown on the leveraged-buyout market, risky loans are making a comeback—and few seem worried about it.
Nearly 13% of LBOs in the first nine months of 2018 were financed with debt equating to at least seven times the target company’s earnings before interest, taxes, depreciation and amortization, or Ebitda, according to S&P Global Market Intelligence’s LCD. That is more than double the level in all of last year and is on track to be the highest since 2014, when 13.5% of deals crossed that threshold and regulators began to crack down on leverage exceeding six times Ebitda.
https://www.wsj.com/articles/risk-returns-to-leveraged-buyout-market-1540373400
