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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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  • Russian oil and gas firm Eurasia Drilling Company has signed a $227m five year facility led by UniCredit.
  • Kazakh mining firm Eurasian Natural Resources Corporation (ENRC) has approached banks for a one plus one unsecured club deal for between $400m and $500m. The deal is expected to close within a month.
  • Salamander Energy, a British oil and gas company with operations in southeast Asia, is targeting the Asian syndicated loan market for a $300m seven year refinancing, tempting lenders with a juicier price than its last deal.
  • Bankers working on the $1.4bn loan for Melco Crown Entertainment have wrapped up the final stages of a successful syndication, lining up commitments of $620m from 16 banks and ensuring that the leads will now look to sell-down part of their holdings.
  • Within the world of syndicated lending, it seems that beggars can be choosers, according to the latest EuroWeek Loans poll, launched at the end of 2012. Almost half (48%) of respondents won’t be content with a mere surge in deal volume this year, they want new money loans in the form of M&A.
  • GISA Netherlands, the European subsidiary of commodities trader Gerald Group, has increased the size of its revolving credit facility from $195m to $250m after it was oversubscribed in syndication.