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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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  • German specialist chemicals group Altana will pay a margin of 65bp for a new €250m multi-currency facility that was signed this week to replace existing debt. The five year deal, which has two one year extension options, was led by Commerzbank as coordinating bookrunner.
  • Bahrain’s Gulf Finance House (GFH) has restructured part of its $100m syndicated wakala facility to extend the tenor of the unpaid $45m portion by six years.
  • The holding company and majority shareholder of PagesJaunes, Mediannuaire Holding, has opened discussions with lenders on a financial restructuring of the HoldCo debt.
  • 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. They are hoping to appeal to lenders that got under-allocated the last time the company came to the market, and are pitching the deal with the same return.
  • Borealis, the Austrian plastics firm, has increased a five year credit line from a mooted €750m to €1bn. The deal was oversubscribed after 16 lenders joined the coordinators.
  • PagesJaunes holding company and majority shareholder Mediannuaire Holding has opened discussions with lenders on a financial restructuring of its debt.