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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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  • The Loan Market Association is examining the Schuldschein market, traditionally the preserve of the German mid-cap borrower, with a view to potentially opening up the market to a wider range of issuers and investors.
  • Rural Electrification Corp only wrapped up its last international loan a few weeks ago, but the borrower has already returned to international lenders to ask for proposals for another $150m.
  • Luxury car dealer China ZhengTong Auto Services is hoping to increase a planned dollar loan to above its $345m limit, after getting big demand from lenders in syndication. The company has already signed a $170m loan, but bankers finding demand for the greenshoe managed to attract a much better response on their second attempt.
  • The finance arm of the UK’s largest mobile phone company, EE, has signed a £350m five year loan from the European Investment Bank as the firm looks to build its 3G and 4G mobile network.
  • South African mining group Platinum Group Metals has signed a $260m eight year syndicated loan from five banks.
  • NXP, a Dutch semiconductor firm, has launched a $500m loan, due in 2020, and is seeking commitments for the senior secured debt.