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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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  • Singapore’s Global A&T Electronics (Gate) is taking out a $125m loan from four banks, giving it a liquidity boost that should help it attract investors on a global bond roadshow over the next few weeks.
  • Irish cheese and dairy group Glanbia plc is in discussions with its lenders regarding the extension of its €320m bank loan set to mature in July 2013.
  • Japanese loans bankers are working hard to bring foreign companies into the yen market, making up for a sluggish borrowing appetite from domestic companies. But they will need to buck a tepid market so far this year to achieve this goal.
  • Bankers are hoping Waterland’s sale of its Dutch trust and corporate services group Intertrust will be the first auction in months to find a buyer, after three private equity firms were understood to have submitted bids for the firm by the November 7 deadline.
  • Melco Crown Entertainment’s attempt to finance its latest project in Macau heated up this week, when it approached bond investors with an $825m deal, to be combined with an even larger international loan.
  • Syndication of the £405m of leveraged loans backing KKR’s acquisition of Acteon is set to close oversubscribed after a strong response from bank lenders, said bankers close to the company.