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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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  • BE Group, the Swedish steel firm, has signed a new Skr1.4bn ($202.43m) three year credit facility with SEB and Svenska Handelsbanken. The loan, which includes guarantee facilities, can be extended by up to two years.
  • North American investment manager Oak Hill Advisors has reached final close of its first fund dedicated to European distressed debt after raising $1.35bn. The firm had set out with a target of $750m.
  • Lloyds, National Bank of Australia, Royal Bank of Canada and Royal Bank of Scotland have underwritten £427m of senior loans to support the acquisition of 300,000 in-payment pension annuities by Guardian Financials Services, the life insurance group that Cinven bought in November 2011, from Phoenix Group.
  • Indian Oil Corp has launched a $300m loan into general syndication, giving the four bookrunners a chance to sell down part of their stake in the underwritten deal.
  • Macanese casino operator MGM China Holdings is talking to banks about a HK$12bn ($1.55bn) loan, attempting to attract lenders despite big supply from the sector over the last six months.
  • Power Finance Corp has closed and allocated a $250m loan, increasing the deal by $150m over its original target after getting strong support from Taiwanese lenders, despite some wariness among the country’s banks of lending to more Indian companies.