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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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  • Rosneft’s jumbo $16.8bn TNK-BP takeover facility, completed late in December, was not enough to stop bond activity in CEEMEA from outstripping loan issuance for the first time ever in 2012.
  • Schaeffler, the German ball-bearings maker, has received full support from its lenders to amend €5.6bn of senior facilities.
  • German engineering firm TrelleborgVibracoustic, which makes shock absorbers and dampers for cars, has signed a $365.5m-equivalent revolving credit facility ­— its first syndicated loan since the company was formed in July 2012.
  • Russia’s Vnesheconombank (VEB) has shaved 5bp off the amount its peers paid for loans to sign an oversubscribed $800m three year club deal at 185bp all-in.
  • William Hill, the UK bookmaker, has made a £454m bid for Sportingbet’s Australian and Spanish businesses, supported by new and existing debt. The deal comes as part of a joint bid for Sportingbet PLC by William Hill and GVC Holdings, another betting services provider.
  • Mobile telecommunications company Zain Saudi has once again extended the payment deadline of the outstanding Sr9bn ($2.4bn) on a Sr2.75bn murabaha financing as a refinancing deal remains elusive. This is the fifth time the firm has deferred payment.