Magazine article American Banker

Meeting Eyed on Controversial Ranking of Syndicators

Magazine article American Banker

Meeting Eyed on Controversial Ranking of Syndicators

Article excerpt

Faced with growing criticism, Securities Data Co. is considering meeting with bankers about a new syndicated lending league table unveiled last week.

The new book-manager table gives credit to lenders who price and structure deals, known as "bookrunners." Historically, the syndicated lending market has used agent-only tables, which give full credit to all top-tier participating lenders.

Since Securities Data announced the new league table in June, complaints and kudos for the new rankings have been building. Securities Data is owned by Thomson Holdings Inc., which owns American Banker.

Lenders that fall substantially in the new rankings have lodged the most complaints against the new format. But those whose position improves have long pushed for the new tables, which more closely resemble those for the bond markets.

Jasmin Chanana, an analyst for Securities Data, Newark, N.J., said the meeting would be a forum for loan-market participants to discuss the new tables and offer advice on how Securities Data should compile the information.

"We can't dictate how we're going to do that," Mr. Chanana said. "We need input from the market to hammer out the issues."

Deals are often won or lost by a lender's standing on the tables, on the principle that a high-volume lender has the experience to execute a syndication. And the market has long complained that agent-only tables give undue credit to lenders who have participated only by handling a deal's documents or arranging meetings. …

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