Merger wave continues in the UK! Barclays (BCS.US) plans to sell $875 million in debt to support Blackstone's acquisition of aircraft parts manufacturer Senior.

According to reports, Barclays PLC Sponsored ADR (BCS.US) is preparing to sell approximately $875 million in debt financing to support the acquisition of British aerospace parts supplier Senior. In April of this year, Senior accepted a takeover offer from a consortium comprising Blackstone (BX.US) and Tinicum Inc., with the transaction valuing around 1.4 billion ($1.9 billion), beating out bids from competitors such as Advent. Sources revealed that Barclays is leading a group of banks to support this USD-denominated underwritten debt financing, and plans to sell it to institutional investors in the coming weeks. According to the underwriting agreement, the financing includes $685 million in senior secured term loans, $190 million in senior secured term loans, and $150 million in senior secured revolving credit. Senior manufactures components for European aircraft makers Airbus and its competitor Boeing Company, as both companies are ramping up production to meet the increasing demand for air travel. This acquisition is the latest in a recent wave of mergers and acquisitions in the UK. Earlier this year, US investment management company Nuveen announced the acquisition of the UK-based Schroders Global Investment group for 9.9 billion (approximately $13.5 billion). US food ingredients giant IFF proposed acquiring UK-based Tate & Lyle in June, with an implied total enterprise value of around 3.7 billion (approximately $5 billion). Barclays PLC Sponsored ADR is also one of the banks involved in another UK debt financing plan, providing 5 billion in financing to support EQT AB's acquisition of Intertek Group Plc. Despite political uncertainty in the UK causing concerns, the M&A activity in the UK continues to be strong. Data up to May showed that the value of M&A deals targeting UK companies has increased by over 250% this year, reaching around $150 billion. This is the highest level since the same period in 2015, nearly double the average for the same period. The vibrant M&A activity in the UK Kersten Muller-Lennert, head of UK Advisory at BNP Paribas, explained, "The UK market remains attractive, with many stable companies that are profitable, have global operations, and have stock prices lower than their American counterparts." Kate Cooper, partner at Freshfields' M&A team, stated that the globalization of many UK companies further enhances their attractiveness to buyers looking to expand internationally. "Technically, they may be UK-listed companies, but due to the diversification of their businesses, they are not truly UK companies in the purest sense. These companies have a global footprint."