Loan market grumbles over Vivendi pricing are missing the point

Bankers railed against French telecoms firm Vivendi last week, criticising the proposed 55bp margin on a new five year facility and the borrower’s aggressive attitude to its refinancing. But the tight margin could be just what’s needed to get the loan market competing again with the bond market. It might also remind participants that the loan market is as much about relationships as it is return.