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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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  • Spanish tin can maker Mivisa has launched a new loan to finance a dividend as leveraged loan bankers say there is plenty of capacity for other sponsors to pull off similar deals. The Blackstone-owned firm is seeking a new €145m term loan ‘C’ that will be used, alongside cash from the balance sheet, to pay a dividend of up to €190m.
  • The deadline to make pledges at the senior level for Protelindo’s $600m five year loan has been extended to the end of this week, despite the bookrunners having already received plenty of demand, said a banker familiar with the deal.
  • State Bank of India has been picked as the sole bookrunner for Numaligarh Refinery’s $90m debut loan, beating competition from five other banks. The Indian bank has priced the deal in the low 200bp over Libor area.
  • Schmolz + Bickenbach steels itself for financing amendments
  • Energy infrastructure firm SAG has asked its investors for consent to amend its existing credit lines, pushing maturities out to December 2017.
  • Sino-American Silicon Products is targeting Taiwanese lenders for an NT$4bn ($134.5m) five year loan, after picking three banks to manage the deal.