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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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  • Intersnack Group, a German firm, has acquired the UK's KP Snacks in a deal worth around £500m that will be funded through a combination of shareholder equity and debt.
  • Qatari liquefied petroleum gas shipping company Gulf LPG Transport Co signed a $200m deal from Qatar National Bank on Wednesday. Gulf LPG is a 50/50 joint venture between Qatari shipping firms Nakilat and Milaha. Nakilat brokered Gulf LPG’s loan with Qatar National Bank.
  • 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.
  • Archer, a Norwegian oil company, is set to breach third-quarter covenants on a $1.121bn multi-currency revolver and term loan facility after earnings tumbled. It is now negotiating with its lenders.
  • Saudi Arabian engineering firm Abdullah AM Al-Khodari Sons Co signed a Sr500m ($133m) Islamic financing facility on Tuesday. This is the firm’s third Shariah-compliant deal in three weeks.
  • African mobile telecoms infrastructure company IHS Holding has signed an oversubscribed $202m-equivalent multi tranche syndicated acquisition finance facility from African lenders.