$5 Billion Limit for LBO Bank Financing According to Blackstone

According to Blackstone’s Chief Operating Officer, Tony James, the limit on bank financing for leveraged buyouts is about $5 billion, much lower than in the two years preceding August of 2007. Smaller deals are getting done as opportunities abound. Case in point, Blackstone itself has been very active over the past year, investing $8.7 billion in 27 deals since the credit crunch set in.