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Current leverage levels are around 3.5-4.0x EBITDA – But banks<br />
remain careful when selecting deals<br />
Development of <strong>European</strong> debt capital markets – Leverage<br />
LEVERAGE RATIOS IN EUROPEAN LBOS [Debt/EBITDA]<br />
4.0x<br />
3.3x<br />
2003<br />
4.4x<br />
3.4x<br />
Source: Loanconnector<br />
4.9x<br />
3.9x<br />
5.2x<br />
4.1x<br />
5.9x<br />
4.6x<br />
5.3x<br />
4.3x<br />
4.1x<br />
3.3x<br />
4.1x<br />
3.7x<br />
2004 2005 2006 2007 2008 2009 2010<br />
Total debt/EBITDA Senior debt/EBITDA<br />
Mediumterm<br />
average<br />
4.7x<br />
3.8x<br />
REMARKS<br />
> Leverage levels have not entirely<br />
recovered from the crisis<br />
> For substantially higher leverage,<br />
lenders typically have to be familiar<br />
with the target – existing lenders often<br />
stay committed<br />
<strong>European</strong> <strong>Private</strong> <strong>Equity</strong> <strong>Outlook</strong> <strong>2011</strong>_Final_010411.PPTX 23
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