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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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  • Deutsche Bank and Mega International Commercial Bank have launched Mindray Medical’s $175m three year loan into general syndication, and are giving lenders until mid-March to make their commitments.
  • Dutch technical services group Imtech has signed a €500m bridge facility and is planning a €500m rights issue as it looks to strengthen its balance sheet following writedowns of €300m in its Polish and German operations.
  • Wood Mackenzie, the UK’s energy and mining research company, is the latest borrower to line up a repricing of its leveraged loans. Wood Mac, which Hellman & Friedman acquired from Charterhouse last summer, is seeking to shave 125bp off its margin on the term loan ‘B’.
  • Banks leading SPi Global Holdings’ leveraged buyout loan of $195m are looking for more banks to join as bookrunners and mandated lead arrangers before closing the deal in early March.
  • Indonesian conglomerate CT Corp’s $750m three year loan has attracted commitments of $85m from four more banks, and at least 10 more are likely join the deal by the end of the week, said a banker close to the deal.
  • The leads on United Test and Assembly Center’s $125m revolver launched the deal into general syndication on February 26, just a few weeks after the same banks helped the company sell a $625m bond.