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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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  • Martin McColl, the UK convenience store chain, has refinanced its existing debt with £126.5m of new bank facilities.
  • Oil and metals producer Vedanta Resources has mandated five banks to lead its $3.5bn loan, and is planning to get the money from a mix of Asian lenders and US institutional investors, according to a banker familiar with the loan.
  • UPC Broadband has launched a new bank facility ‘AG’ of at least €400m, asking some of its lenders to roll over their commitments to the new tranche.
  • Noble Group has finished a roadshow for its $1.5bn loan. The deal is already oversubscribed after commitments from the huge list of mandated lead arrangers, but other lenders eyeing the deal have until May 6 to make their pledges.
  • Ziggo, the Dutch provider of cable TV, internet and telephony services, has received commitments for a €800m loan refi and is starting investor meetings for a new Baa3/BBB- rated secured bond. The company secured a €400m term loan ‘A’ and a €400m revolving credit facility with nine banks.
  • Tata Steel is planning to sign a Rs230bn ($4.2bn) club loan with a consortium of between 10 and 15 lenders this week.