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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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  • Kloeckner Pentaplast, the German plastic packaging company recently emerged from a restructuring exercise, is in discussions with high yield accounts after meeting lenders for its $500m loan package.
  • French canned, frozen and fresh vegetables company Bonduelle Group has signed a new five year revolving credit facility of €300m with eight banks as part of the financing of three acquisitions the company made earlier in 2012.
  • It’s “business as usual” for arranging banks looking to underwrite leveraged loans, according to levfin bankers, despite the stalling syndications of some of the LBO deals in the European market.
  • A Saudi-Spanish consortium has signed a SR3.04b ($810.6m) loan from a syndicate made up mainly of Spanish banks. BBVA, Banco Espanol de Credito, Banco de Sabadell and Caxia Bank were joined by the Spanish subsidiary of Crédit Agricole and Deutsche Bank.
  • FIG
    Turk Eximbank saw its one year loan end up oversubscribed, signing at €244m after the borrower approached the market for €125m.
  • The takeover of Rhön-Klinikum by German health care group Fresenius has come to a halt, after not enough Rhön-Klinikum shareholders backed the deal.