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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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Activity in Asia’s secondary loan market has picked up over the past few months as banks seek to manage their portfolios more efficiently. This is attracting intermediaries such as fixed income specialist SC Lowy, which has set up a par loan trading business in the region. But while there are opportunities, there are also plenty of challenges holding back growth in the nascent market, writes Shruti Chaturvedi.
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The third largest takeover is on. Brewer SABMiller has agreed to be bought by Anheuser-Busch InBev for £68bn, in a deal that shows continued investment confidence in Africa — one of the main attractions of SABMiller for InBev, which is weak in the continent — bucking the trend of pullback from emerging markets.
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Commitments are due on Thursday October 15 for Concordia Healthcare Corp’s loans for its $3.5bn acquisition of Amdipharm Mercury from Cinven.
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China's Yingde Gases Group has cut the size of its syndicated loan to $100m from $150m, in favour of raising additional funds from an onshore renminbi bond.
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Ladbrokes has signed £1.3bn of loans to be used in its acquisition of Gala Coral Group.
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Fixed income specialist SC Lowy has set up a par loan trading platform in Asia, as it seeks to tap into the growth of the secondary loan market in the continent.