This article focuses on the leveraged buyout (LBO) market in Europe. Two contrasting
European leveraged buyouts have shown how the leveraged finance market is developing
in 2005. While ideas like Cablecom's refinancing and Greece's first ever LBO are
being funded largely in the bond markets, the secondary buyout of German motorway
service station chain Tank & Rast backed the trend and used senior debt. Allianz
Capital Partners, Lufthansa and funds advised by Apax Partners agreed to sell their
shares in Tank & Rast to British private-equity house Terra Firma Capital Partners
in November 2004. Terra had been looking at the acquisition for more than a year.
Meanwhile,JP Morgan and Deutsche Bank are acting as arrangers and bookrunners on
the LBO of 80.87% in Telecom Italia's Greek mobile operator Tim Hellas Communications.