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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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  • FIG
    Turkish development and investment bank Turkiye Sinai Kalkinma Bankasi (TSKB) has signed a $96m-equivalent one year loan from seven banks. Commerzbank arranged the facility. It is split between a €65m ($81m) piece and a $15m tranche.
  • Lloyds Bank has hired Andrew Edwards, head of balance sheet management at Barclays Corporate, as a managing director and head of portfolio management — a key department as the UK bank deleverages its balance sheet.
  • More loans market participants think that there is a chance that the loans market will be negatively affected by the ongoing euro sovereign crisis than not, according to a survey carried out by EuroWeek.
  • Unrated German sportswear manufacturer adidas has signed a €500m five year revolver at a margin of just 40bp.
  • Aviva Investors Central European Property Fund has signed a €148m fully underwritten loan to refinance its Central and Eastern Europe real estate portfolio.
  • China’s decision to allow mainland companies to borrow in foreign currencies at home and send those funds to their overseas subsidiaries is being seen by some bankers as a threat to international loan volumes. But in the long run, the move could be just the opposite.