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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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  • Lonmin will breach the covenants on its loan facilities after violent unrest at its South African platinum mine disrupted production for several days.
  • A subsidiary of Russian energy firm Gazprom has signed a $500m three year dual tranche loan from Sberbank and RBS.
  • Macedonia’s state-run rail firm Public Enterprise for Railway Infrastructure has signed a €46.4m long term loan from the European Bank of Reconstruction and Development.
  • The buyout of UK pharmaceutical company Mercury Pharma is set to bring more supply to the leveraged loan market, with new owner Cinven working with several banks — including sell-side adviser Jefferies — on launching an all-senior financing to syndication in September.
  • Russian steel and mining firm Metalloinvest has signed two credit lines totalling Rb50bn ($1.6bn) from Sberbank.
  • Russia’s third largest food retailer by revenue, Dixy Group, has signed its Rb18bn ($561.8m) five year unsecured amortising club loan from five banks.