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Leveraged Loans

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Despite the allure of lower loan prices, CLO managers should print deals cautiously
Software loan sell-offs and the Iran war have caused US and European loans to price differently
Leveraged loans in stressed sectors like software carry refinancing risk
LBO financing includes $5.75bn term loan to be priced early next week
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  • Bureau van Dijk, the Dutch electronic publishing house, has received oversubscription for its new €140m term loan ‘C’. Arrangers are trying to get all commitments in before the Easter holidays and are planning to allocate next week.
  • The new pet of the leveraged loan market, Pets at Home, has completed a new loan to pay a dividend to shareholder KKR — while also cutting the pricing on another existing facility.
  • Banks have leapt at the chance to lend in the CEEMEA region this quarter, leading to a clutch of oversubscribed deals. But rather than borrowers dazzling lenders with their economics, banks are rushing to deals to find somewhere — anywhere — to put excess liquidity, according to the latest EuroWeek Loans poll.
  • UPC Broadband has raised a new €1.4bn term loan ‘AG’, shattering its target of a minimum €400m size. New and existing investors participated in the deal for the cable operator, leading to a blow-out syndication process.
  • Telecoms firm Polkomtel has stunned emerging market bankers by issuing a second request for proposals (RFP) that asks for an all-in pricing of below 300bp on part of its $2.45bn-equivalent refinancing facility.
  • Chinese hotel chain 7 Days Group Holdings had been planning to launch its $120m five year loan into senior syndication early last week, but after hitting what bankers said were a few admin hiccups, the deal was delayed. But the leads are now planning to push ahead with the deal before they leave for the Easter holidays.