P.E. Firms On European Refinancing Spree

Private-equity firms are taking advantage of loosening credit markets to refinance cash-strapped portfolio companies in Europe.

Standard & Poor's Leveraged Commentary and Data shows that p.e.-owned European companies have refinanced €23 billion in debt this year, a record. Last year, the total amount of renegotiated debt on the loan and high-yield bond markets was €17 billion.

Renegotiated debt also hit a record in the U.S. this year, with US$149 billion in refinancing volume, as borrowing costs have dropped.

Dividend recapitalizations are also up this year, at US$11.2 billion in Europe, according to S&P, the highest level since 2007.