Smith Barney, Scotiabank Unveil $1B Bridge Loan Fund

Smith Barney and Scotiabank announced Thursday that they will team up to create a $1 billion bridge loan fund, the Blue Water Fund.

It will make senior and subordinated interim loans in connection with strategic acquisitions, recapitalizations, and leveraged buyouts to be refinanced by subsequent high-yield debt issues.

Each firm has contributed $200 million, and they will seek $600 million of additional capital. The fund is expected to close within 30 days.

"Through the Blue Water Fund, we will be able to deliver an efficient source of bridge loan financing," Jim Tryforos, head of Scotiabank's corporate finance and syndications group, said in a release.

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