At The Deal's Fifth Annual Private Capital Symposium Wednesday afternoon, speakers on the "Deals in the middle market" panel said that while the credit crunch crimped large-cap deals, it also turned attention to midmarket transactions, which are slightly easier to finance.
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The lending environment today is a far cry from a few years ago. "The bulk of what we saw in '06 and '07 are [big deals] that involved companies that are not triple-A rated," James Epstein, Partner, Pepper Hamilton said. "These large-cap deals were a new phenomenom. In an environment we're in, there's a cap of how much leverage a company can take on. When you talk about deals exceeding a billion dollars, it's not going to happen because of financing troubles," Adam D. Sokoloff, Managing Director and Head of Financial Sponsors & Private Capital Group , Jeffries & Company, said. - Gerald Magpily
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