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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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  • UK pub operator Enterprise Inns has signed a £220m forward start facility that will come into effect on December 16 2013, when the company’s existing loan expires.
  • Saudi Arabia's Al-Kifah Holding has agreed a SR600m ($160m) six-year syndicated murabaha loan with a group of banks.
  • Kenya’s ministry of finance has drawn down $240m through the first tranche of its $600m syndicated loan completed last month.
  • Saudi Arabian Mining Company (Ma’aden) has received bank commitments for its SR7bn ($1.87bn) five year murabaha revolving credit facility.
  • Singapore commodities trader Arcadia Energy has sent a request for proposals to banks to refinance a $280m loan, looking for a deal of around the same size after deciding to launch its third revolving credit facility in three years.
  • Standard Chartered analysts have revised their forecast for the renminbi against the dollar, adding to growing doubts about the appreciation of China’s currency. That could help bankers convince mainland corporations to tap the market in greater size.