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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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  • Strong demand for German safety technology company Bartec’s €187m term loan ‘B’ has pushed bookrunners to reduce the margins on the tranche from 550bp to 525bp and sell the deal without a discount — a rarity in the 2012 European leveraged loan market.
  • Southeast Asia loans bankers are putting the finishing touches to a series of loan proposals for Indonesia’s finance ministry, hoping to bolster the lacklustre volumes from the region this year by helping the country fund a boost in military spending.
  • FIG
    Turkish borrower Denizbank is in the market for a one year loan to refinance its $650m-equivalent facility signed in October 2011.
  • August has seen little slowdown of Islamic financing volume despite the absence of market players for holidays as well as this year's Eid celebrations.
  • CZZ Trade, a subsidiary of Russia’s fourth largest coal exporter, Zarechnaya, has launched a three year pre-export finance transaction into general syndication. The firm has pencilled in October 17 as the signing date.
  • Private equity firm Corsair Capital has raised £63m of senior loans to back its buyout of UK cash machine operator NoteMachine from Rutland Partners. NoteMachine’s management retains a significant holding in the company.