When an indebted infant health-care company in Atlanta wanted to borrow hundreds of millions of dollars to buy a rival in Pasadena, it turned to a lender thousands of miles away in London.Barclays Plc is helping Aveanna Healthcare LLC get a $221 million loan for its purchase of Premier Healthcare Services LLC, adding to a $900 million debt last year. The deal will push Aveanna’s borrowings to more than 10 times its earnings and leave it with “little room for error,” S&P Global Ratings said.The proposed loan is among tens of billions of dollars of borrowings that European lenders are arranging for riskier American clients, a business they’re targeting to ease the pain from revenue slumps in other areas. They’re so keen to take market share from their U.S. rivals that even Deutsche Bank AG, the embattled lender that’s giving up much of its Wall Street ambition, has earmarked more funds for such deals.Now some observers warn that they’re pushing into a borrowing binge that’s spooked some of the world’s biggest money managers and been described by the Bank of England as a risk to financial stability. Increased competition may be enabling companies to borrow more than they should and… Read full this story
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