Leveraged finance takes heart from TXU launch, rally in secondary prices

11 Oct 2007

The European secondary loan market bounced back this week on stronger economic news in the US, leading some bankers to herald the developments as the first signs of genuine recovery in the battered leveraged loan market.

The scheduled launch of the Citigroup-led $24.5bn financing for US energy group TXU, which will partly finance the world’s biggest ever LBO — Kohlberg Kravis Roberts and Texas Pacific Group are buying TXU for $45bn — was welcomed as an indication that confidence and liquidity were returning to ...

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