Pitchbook Quotes Ranesh Ramanathan on Private Credit vs Syndicated Loans
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For its article “Riskier borrowers act fast as syndicated loan market opens for refinancing,” Pitchbook quoted Akin special situations & private credit practice co-leader Ranesh Ramanathan. The article looks at the reopening of the syndicated loan market and addresses whether borrowers will opt for syndicated loans or private credit for new debt.
“Private credit deals typically have more leverage, more challenging stories and more creative structures,” said Ranesh. “By having a relationship with a lender, you’re able to work out extensions and amendments. If you think you’re going to need to negotiate with a lender, you may think it’s worth it to pay an extra 100 bps.”
Ranesh added, “The pendulum swung one way. It’s now going to swing back the other way. Usually the trend is over-deployment, then you come back to the right mix.”
