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1H23 Continental Europe Market Update
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Pricoa Private Capital Continental Europe looks back at strong origination in the first half of 2023.
Discussion Points
- Unsurprisingly, the central conversation topic with borrowers remains the trajectory of rates. With rates higher for longer, certainty of longer-term funding can offer value particularly for longer term investments. EUR coupons relatively flat across longer tenors.
- Further, the current pricing delta between shorter-term floating and long-term fixed rate debt is low, the latter offering downside protection to future EURIBOR risk in an unpredictable environment.
- For companies with near term funding requirements, delayed private placement funding of up to 12 months is currently available at very low/no cost as is the framework agreement Pricoa Shelf.
Solid Activity through H1
- Provided >$920 million of capital across 15 corporate and infrastructure borrowers with a focus on 7-to-20-year maturities.
- Continued to provide capital across a broad range of sectors and credit qualities including investment grade, below investment grade, and mezzanine financings.
- We were very active despite the challenging macro environment demonstrating our long-term philosophy.
- Many companies have sought to achieve a stable and reliable layer of financing through establishing a Pricoa Shelf.
Benefits of the Shelf
The Shelf facility is a flexible option on longer term capital:
- Speed: Terms and facility documented upfront. Ability to access longer term capital at short notice (e. g. M&A)
- Flexibility: Company can elect to draw a portion of Notes at the point of close or leave the Shelf undrawn.
- Tailored: Optionality around currencies, maturity profile, and sizes of the draw(s).
- Diversification: Funding source beyond bank and public markets.
Sample Shelf Transactions
August 29, 2023
For more information, please contact:
![Thomas Krausser headshot](https://cdn.prod.website-files.com/6100514a3816cbf51fdaa3f0/613787bf36240e219b6e7509_Krausser%2C%20Thomas.jpg)
Thomas Krausser
Senior Vice President
![Jennifer O’Neill-Mardokh headshot](https://cdn.prod.website-files.com/62e3e0f0184f37a17997cde2/62e3e0f0184f37d05997d3f4_JenniferO%27Neil-Mardokh.jpg)
Jennifer O’Neill-Mardokh
Senior Vice President
![Francesco Ascoli headshot](https://cdn.prod.website-files.com/62e3e0f0184f37a17997cde2/62e3e0f0184f37057a97d3df_FrancescoAscoli.jpg)
Francesco Ascoli
Senior Vice President
![Max Boury headshot](https://cdn.prod.website-files.com/62e3e0f0184f37a17997cde2/642734a0401b543d497f62c5_Boury%2C%20Max_update.jpg)
Max Boury
Vice President
![Jose Ortiz headshot](https://cdn.prod.website-files.com/62e3e0f0184f37a17997cde2/642731bda53a597f63a4cfb1_Ortiz%2C%20Jose_update.jpg)
Jose Ortiz
Senior Vice President
![Florian Seifert headshot](https://cdn.prod.website-files.com/62e3e0f0184f37a17997cde2/64be9135ab35a29bdc57aa7f_Seifert%2C%20Florian.jpg)
Florian Seifert
Director
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