are project strongfinancestrong loans different from other syndicated.pdfVIP

ARE PROJECT FINANCE LOANS DIFFERENT FROM OTHER SYNDICATED CREDITS? Stefanie Kleimeier William L. Megginson* Current Draft: January 19, 2000 Comments Welcome * The authors are from, respectively, Maastricht University and the Maastricht School of Management, Maastricht, The Netherlands, and the University of Oklahoma. This paper draws heavily on a manuscript presented at the 1999 Harvard Business School/Journal of Financial Economics Conference on Field- Based Research, and we appreciate the comments received from conference participants—especially Steve Kaplan and Paul Gompers. We also thank Ben Esty, Chris Cornwell, Michel Habib, Jimmy Hilliard, John Kensinger, Larry Lang, Carlos Maquieira, John Martin, Ashoka Mody, Mitch Petersen, Annette Poulsen, David Schirm, Bill Schwert, Joe Sinkey, and Art Snow for helpful comments and suggestions. Finally, we are especially grateful for the financial support of the University of Oklahoma’s Michael F. Price College of Business, which allowed us to purchase the Loanware database used in this study. Please address all correspondence to: William L. Megginson Professor Rainbolt Chair in Finance Michael F. Price College of Business 307 West Brooks, 205A Adams Hall The University of Oklahoma Norman, OK 73019-4005 Tel: (405) 325-2058 Fax: (405) 325-1957 e-mail: wmegginson@ /M/William.L.Megginson-1 ARE PROJECT FINANCE LOANS DIFFERENT FROM OTHER SYNDICATED CREDITS? Abstract This paper provides the first full-length empirical analysis of project finance, which is defined as limited or non-recourse financing of a new