US levloan feels pricing pain, but balance of power intact
Pricing for European companies like Armacell and Altice marketing leveraged loans in the US has soared in the turmoil following the Fed’s signal on tapering QE, writes Olivier Holmey. But while deals in the less ramped up European market were largely unscathed, few bankers expect the setback to change the longer term appeal of either sector — especially with European CLOs under regulatory pressure.
German foam manufacturer Armacell saw the margins on its facility pushed up by up to 100bp. Dollar pricing for Luxembourg telecoms investment firm Altice rose around 50bp.
Bankers close to the deals blamed the rises on market volatility following comments by Fed chairman Ben Bernanke, last Wednesday. He
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