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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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  • Bankers working on a $165m loan for Indonesian clothing company Pan Brothers have finalised the allocations for the deal, after securing commitments from 17 banks in syndication.
  • Taiwanese company Ho Tung Chemical Corp has finalised allocations for its NT$4bn ($138.1m) five year syndicated loan, attracting commitments from 12 banks drawn to the deal’s relatively low margin rate.
  • Areva, the French nuclear power group, has signed a new €1.25bn revolving credit line with a group of 19 banks.
  • Tatneft is in talks for a pre-export finance facility of between $300m and $500m in a deal that will test the benchmark pricing for Russia’s sub-investment grade oil firms.
  • Russian financial institution VTB is close to signing a $1.5bn three year deal, but lenders are waiting to see if the borrower will push for another round of syndication.
  • Chinese sweet maker Labixiaoxin Snacks Group has made a successful debut in the syndicated loan market, closing a $60m deal after getting enough demand to exercise its $15m greenshoe option.