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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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Shui On Development Holding is offering a hefty margin on its $300m three year amortiser to entice lenders cautious about investing in Chinese property related firms.
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Indonesian telecommunication tower company Solusi Tunas Pratama has opened the dollar portion of a $350m-equivalent multi-currency loan to retail lenders.
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Three deals priced in the leveraged loan market on Friday, all at the tight end of guidance, with SFR and Platform increasing the size of their euro offerings.
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Insurance companies taking leveraged loan exposure through open ended funds, rather than CLOs, should cause alarm. Given the liquidity risk inherent in the structures, regulators ought to be watchful.
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French telecoms firm SFR launched a $2.4bn-equivalent refinancing with a lender call on Tuesday afternoon, aiming to lower margins by as much as 100bp despite a poor performance this year, while Eircom closed its repricing on Wednesday evening.
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SMBC has hired Barclays’ head of private loan sales, who had worked at the bank for 10 years before his departure.