Levfin investors fight back, autumn pipeline bare after hat trick of horrors

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By Olivier Holmey, Ross Lancaster
06 Aug 2014

A sour mood lasting weeks in leveraged finance markets, including fund outflows, culminated in Styrolution’s failure to secure a €1.6bn refinancing deal on Thursday. With two other levfin deals needing wider pricing to be completed and with another deal pulled in the high yield market, market participants now have serious doubts about the September deal pipeline.

The German plastic producer’s withdrawal from the market was the most striking example yet of a borrower failing to find investor support for a deal and thus having to price a deal more cheaply or cancel it altogether.

For the past month borrowers had, in the ...

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