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Investors eye 2028, 2031, 2032 as big years for loan maturities
Even leveraged deals still being underwritten, though banks are selective
Liquidity event at American manager comes at fraught time for industry
Major sectors in leveraged loans are trading down, making shrewd credit selection vital
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Solenis, the US chemicals producer, has closed books on an €85m six year term loan that backs its acquisition of Clearwater Specialties, increasing the facility by €10m.
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Mid-market sterling cov-lite seems to have made it over the line this week, with Sky Bet set to close books on Friday, Northgate having been allocated and Advanced Computer Solutions preplacing the sterling tranche of its acquisition facility.
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Wittur, the German lift components producer, set price guidance for its €285m ($322.23m) acquisition loan at a London bank meeting on Monday, a day before its new private equity owner, Bain Capital, added TI Automotive to its portfolio.
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The European second lien leveraged loan market has had a rough start to the year. Low volumes, due to unattractive pricing and competing junior debt products, have made it a tough sell to subordinated debt investors.
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After a brutal year in 2014, in which several senior staff were cut or left the bank, UBS’s European levfin business has a fixer in the shape of Jim Boland.
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UK online gambling business Sky Bet has widened the margin on its £340m leveraged loan by 25bp as the deal nears its deadline for commitments.