International law firm Freshfields Bruckhaus Deringer has bolstered its international high yield offering with the appointment of Gil Strauss as a partner in its London practice. 

Formerly of Simpson Thacher & Bartlett LLP, Mr Strauss, an experienced US corporate finance and securities lawyer, will join Freshfields in September strengthening the firm’s high yield practice in Europe and internationally. This expansion of the firm’s high yield offering is part of a broader initiative involving the firm’s existing high yield and leveraged finance lawyers, which is targeted at providing bank, corporate and sponsor clients with seamless advice across the full spectrum of leveraged finance products. 

Global leverage is increasingly being provided through high yield issuances while at the same time global bank lending remains under pressure. The first half of 2010 has already seen the completion of 125 high yield issues globally, which have raised in excess of $62.7bn, already more than three quarters of the total combined value raised last year ($83.2bn). As well as a source of capital to finance acquisitions, today high yield bonds are also being used to provide working capital for growing companies eager to capitalise on lower interest rates to refinance old debt. 

Alan Newton, global head of Finance at Freshfields comments: ‘There has been a structural shift in the financial markets away from pure bank lending and towards a mix of the debt capital markets and traditional bank finance for both event driven and corporate financing. As a result, debt capital markets, including high yield, are now playing an increasing role in the refinancing of leveraged and other corporate loans.’ 

He continues, ‘High yield has become one of the core products which many of our bank clients offer and it has become an increasing source of new business for them. We see the bolstering of our bank side high yield offering as a strategic move that these important clients will welcome.’ 

Sarah Murphy, head of Freshfields’ US Corporate Group in Europe and Asia and joint head of the firm’s Global Capital Markets Group said, ‘Gil’s expertise in acquisition financing, high yield debt offerings and bridge financing is a valuable addition to our high yield, US and capital markets practices and we are very excited about the opportunities that will come from the combined experience of Gil and our existing high yield, capital markets and bank lending teams.’ 

‘He joins us at a time when the bank lending market in Europe remains challenging and there is significant demand for high yield advice both on a stand-alone basis and as part of broader financing packages. His move strengthens our ability to provide our clients with top quality advice across the entire balance sheet at a time when it is most needed,’ concludes Murphy.