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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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  • French mailroom equipment maker Neopost has raised €50m and $50m in separate four year Schuldschein loans from French and Asian investors as part of a longer-term refinancing of its existing debt.
  • Axa Private Equity has invested €100m in animal health company Ceva through what the sponsor has described as an "innovative" private placement bond.
  • Energias de Portugal has signed an €800m loan from the Bank of China, its first facility from the Asian lender.
  • Beleaguered UK directories company Hibu — formerly known as Yell Group — has received notice from some lenders that they may seek to launch legal action to recover unpaid debt repayments of up to £65m. The dissenting lenders have not received a payment due this week under Hibu’s 2006 loan, and could submit a petition for the winding-up of the borrowing entity, said the company.
  • Russian aluminium producer Rusal has extended the controversial covenant holiday on its $4.75bn 2011 pre export finance facility until the end of 2013.
  • Bankers are breathing a sigh of relief after Turkey’s Finansbank chose not to follow Garanti’s proposed 125bp loan pricing, instead launching its new one year loan priced at 135bp all-in.