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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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Wugang Trading has issued allocations for its $150m three year bullet loan that launched into syndication in July. The loan, which was led by Standard Chartered and came backed by a guarantee from Industrial and Commercial Bank of China, saw 17 lenders join during syndication.
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Brightoil Petroleum has sealed a $600m five year financing to back its acquisition of Kerr-McGee China Petroleum oil blocks from Anadarko Petroleum Corp.
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Indian state-owned oil company Hindustan Petroleum Corp has priced its $200m five year loan, which features a $100m greenshoe, at an all-in narrower than its most recent syndication that had a shorter tenor.
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Spanish private hospital operator Grupo Hospitalario Quirón shrugged off the demands of a strong lender’s market this week, in a €2.15bn deal that recalled the weight of CVC’s reputation among investors.
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Bankers and investors are casting an increasingly critical eye on aggressive deals scheduled for launch in September, as relentless fund outflows indicate investors might not commit as willingly as they did in the first half of 2014.
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Amtek Global Technologies, having approached the loan market for the first time in July, will not set a deadline for commitments on its €305m deal but is using the calmer August weeks to improve lenders' understanding of the credit.