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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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  • Czech energy firm Energeticky a Prumyslovy Holding (EPH) has seen four banks join its €1.3bn term loan in the first phase of syndication, with another two considering pledging funds as early birds this week.
  • Spanish pulp and biomass energy producer ENCE on Monday signed a €90m syndicated loan alongside its debut €250m seven year high yield bond.
  • The pricing on a €512m all-senior debt package supporting the buyout of Intertrust, the Dutch trust and corporate services group, has been reverse flexed after attracting strong investor interest in syndication.
  • India’s Chambal Fertilisers and Chemicals has sent a request for proposals to bankers ahead of a $830m loan, and appears to be targeting Japanese banks. But demand for the loan will largely depend on how the fertiliser industry performs.
  • Bankers handling the $200m seven year loan for Greencompass Marine, a subsidiary of Taiwanese shipping conglomerate Evergreen Marine Corporation, closed general syndication last week after securing commitments from three other banks.
  • The repricing of an £885m facility for UK food retailer Iceland, the first purely European margin reduction seen in the sector for many months, indicates a bleak outlook for lenders, according to leveraged loan bankers.