Loan costs slashed, div recaps return, as Europe pricing pressure builds

Leveraged loan borrowers in Europe are becoming ever more aggressive in their requests for repricings, as demand continues to outstrip supply across the primary and secondary markets. Sponsors are now looking to slash up to 125bp from their existing deals and have reanimated the European dividend recap product, but bankers warn that the perfect repricing conditions seen in the market at the moment cannot last for long, as Nina Flitman and Stefanie Linhardt report.