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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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  • Abu Dhabi National Energy Co (Taqa) has managed to cut the price it pays for three and five year money as the firm enters the final stages for a $2bn-equivalent revolving credit facility.
  • Studio City, the latest Macau development from Melco Crown Entertainment, is looking for demand for around $400m of its jumbo loan. The first stage of its financing plan — an $825m bond essential to the loan funding — was executed despite a difficult market last week.
  • Dutch cable operator UPC has refinanced its $500m dollar-denominated term loan ‘AB’ with a new facility, a term loan ‘AF’, slicing 50bp off its margin and 25bp off the tranche’s Libor floor.
  • Leveraged credit and mezzanine fund manager Intermediate Capital Group (ICG) reported a 64% drop in pre-tax profit for the six months ending September 2012, as the group’s results were hit by provisions against two assets whose debt is being restructured.
  • Turkey’s Garanti is signing its $1.1bn-equiavalent refinancing loan on Thursday after the borrower scaled back lender commitments.
  • Leveraged loan fund manager Alcentra is seeking to increase the size of its listed loan fund by more than £70m through the issue of C shares priced at £1 per share.