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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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  • Beleaguered Danish shipping firm TORM has restructured its debt, having breached covenants last year, extending the maturity of its existing $1.793bn bank facility until the end of December 2016 and arranging a new $100m working capital facility.
  • EQT-owned German bandage maker BSN Medical (B/B2) is looking to reprice its €740m term loan ‘B’ at tighter terms just three months after signing, with leveraged finance bankers confident that the strength of the US loan market would make the adjustment possible.
  • Abu Dhabi airport construction joint venture TAV-CCC-Arabtec has signed a Dh4bn ($1.09bn) four year conventional and Islamic facility from five Middle Eastern banks.
  • The European Bank for Reconstruction and Development (EBRD) has set up a €1bn off-balance sheet fund to finance deals in the southern and eastern Mediterranean, where it has just started lending.
  • Saudi Arabia’s National Gas and Industrialisation Co (Gasco) is negotiating a SR203m ($54m) loan from the state-run Saudi Industrial Development Fund.
  • Seven banks have underwritten £405m of senior loans to back KKR’s acquisition of a majority stake in oil and gas services group Acteon.