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A slow destruction of misallocated investment is more likely than a sudden stop
LBO financing includes $5.75bn term loan to be priced early next week
Investors eye 2028, 2031, 2032 as big years for loan maturities
Even leveraged deals still being underwritten, though banks are selective
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Europe’s leveraged finance market is forecast to be hit by the biggest wave of defaults since 2009 next year, yet there is a disconnect with market sentiment. As Standard & Poor’s predicts the default rate to reach 8.5%, bullish investors continue to pile in. Silas Brown and Mike Turner report.
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Standard & Poor’s expects the European default rate to climb to the highest level seen since the fallout from the last financial crisis.
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The speed with which leveraged finance investors have embraced environmental, social and governance issues in the past 18 months has created an information impasse in the market, which the investors’ trade body is striving to ease.
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Valeo Foods, the Irish food producer behind brands such as Jacob’s Cream Crackers and Rowse’s Honey, has closed an amendment and extension deal for its euro and sterling leveraged loans.
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Barclays has announced a new head of logistics banking for Europe, the Middle East and Africa.
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Hong Kong’s mortgage loan provider Lei Shing Hong Credit has closed a $330m-equivalent deal with 11 lenders.