Salomon Brothers on Tuesday said it has raised $1.2 billion for its new bridge loan fund, dubbed Millennium.
Typically used by companies before they issue high-yield bonds in leveraged acquisitions, recapitalizations, and management buyouts, bridge loans are a key ingredient in the "one-stop-shopping" menu many commercial and investment banks are now offering their corporate clients.
In launching Millennium, Salomon joins other lenders, including Chase Manhattan Corp., Donaldson, Lufkin & Jenrette, Lehman Brothers, Goldman Sachs & Co., and Morgan Stanley & Co., that already have bridge funds. Bear, Stearns & Co. is also developing its own $1 billion fund, according to market sources.
The Millennium Fund is headed by Salomon's Chad Leat, a managing director in its high-yield capital markets group.