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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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  • CCM Pharma, the new pharmaceutical company that private equity group Cinven is forming by merging two of its recent acquisitions, has set price talk on its new £160m-equivalent euro-denominated term loan ‘B’ at 525bp-550bp.
  • Lending officials from more than 20 different banks attended a meeting held by Indonesian power company Pertamina this week, giving bankers on the deal a lot of confidence that they will be able to cover the loan before the end of the year.
  • Rural Electrification Corp allocated a $250m three year loan earlier this month, and this week the bookrunners confirmed the final allocation splits between the nine banks that contributed to the deal.
  • Loans bankers working on a $500m refinancing for Sateri Holdings are in discussions with lenders in Asia and Latin America about joining the deal, but they have still not come up with a firm deadline for commitments.
  • Russian electricity firm Inter RAO has signed a Rb6.5bn ($210.4m) credit line with state-owned lender Gazprombank.
  • Saudi Arabia’s Sahara & Ma’aden Petrochemicals Co (Samapco) has signed long term Islamic financing facilities totalling SR1.98bn ($528.2m).