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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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  • Russia’s push for a fully functioning domestic syndicated loan market has edged forward after banks agreed to discuss a 70 page paper that will form the basis of standardised loan documentation in the country.
  • Metinvest, the B2/B rated Ukraine metals group, announced on Thursday that it has fully repaid its $1.5bn five year facility signed in 2007. At the time, it was the biggest loan from Ukraine and it remains Metinvest’s largest deal.
  • Fomento de Construcciones y Contratas (FCC), the Spanish building firm, completed a €508m three year syndicated loan on Tuesday.
  • Deceuninck, the Belgian PVC window manufacturer that went through a debt restructuring in 2009, has signed a €140m five year senior loan with five banks.
  • UK private equity firm Charterhouse has bought German safety technology group Bartec from Swiss investor Capvis in a deal expected to be financed through the leveraged loan market.
  • Russia’s Siberian Coal Energy Company (Suek) has signed a $200m export credit agency-backed term loan.