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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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  • Barclays, Lloyds and Royal Bank of Scotland have agreed to write down £87m of loans owed by UK infrastructure and business services group Mouchel in return for a majority share in the company.
  • Syndication of the €96m of senior loans financing the acquisition of French discount retailer Stokomani by Sagard Private Equity Partners has closed oversubscribed after a limited number of banks were invited to join, said a banker close to the deal.
  • Russian electricity firm Inter RAO has signed a Rb9.6bn ($297m) five year loan from the European Bank for Reconstruction and Development (EBRD). The loan may be converted by the development bank into Inter RAO shares.
  • Dubai’s Jebel Ali Free Zone (Jazfa) finalised an $1.2bn eight year Shariah compliant loan on Wednesday, quelling fears in some quarters that the borrower would not be able to meet the November maturity on an outstanding Dh7.5bn ($2.05bn) sukuk.
  • General syndication has closed on the Republic of Kenya’s $600m two year bullet loan.
  • Many leveraged loan investors may view dividend recapitalisations with a generous degree of suspicion but they are not the no-go areas that some lenders’ dismissive voices make them out to be, according to a EuroWeek loans poll.