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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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Centratama Telekomunikasi Indonesia, an IT and internet services provider, is in the market with a triple-tranche $390m loan tied to its M&A plans.
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Home Credit Vietnam has put together a $80m borrowing with four banks. The deal marks the firm’s second loan in the international market.
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Leveraged loan issuers used to call on direct lending players to pre-place small portions of their offerings, mostly second liens. But as direct lenders grow bigger funds, their appetite for loans is starting to impact entire deals.
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Borrowers and investors marched on in the European leveraged finance markets this week, pricing €1.5bn of high yield bonds while bankers have been able to tighten terms on new loan deals during syndication. Deals pulled earlier in the week in the US are already a fading memory.
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Elis, the French laundry group, has raised €600m from 12 banks, in part to pay off the bridge facility it used to acquire UK rival Berendsen in the summer.
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Dalian Wanda Commercial Properties (DWCP) has put together a three-pronged plan to address problems related to its offshore loans, worth close to $1.5bn. The deal itself is giving lenders enough of a headache. But it has also put the spotlight on other loans guaranteed by onshore parents in China, writes Shruti Chaturvedi.