Deal famine risks taking leveraged loan market into dangerous waters

18 Feb 2011

The simple fact of demand outstripping supply — as evidenced by big cuts in margins in deals for Mivisa and Reynolds — is damaging the recovery of the leveraged loan market, bankers said this week.

Investor demand was such that the bookrunners on loans backing the LBO of Spanish tin can producer Mivisa were able to reverse flex the facility for the second time in as many weeks.

Meanwhile bookrunners on the Reynolds $2.7bn refinancing have been able to slash pricing by up ...

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