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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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  • Hungarian oil and gas firm MOL is in talks with its lending group over the extension of a €1bn five year plus one plus one loan that the borrower signed in June last year.
  • After issuing a warning that it may breach its financial covenants this year as its Ebitda tumbles, Yell Group has turned to Goldman Sachs and Greenhill to advise it on putting in place a new capital structure. The UK directories firm hopes to complete the task in the next 12 months before the bulk of its debt matures in April 2014.
  • Spanish travel technology firm Amadeus has signed a new €200m facility with a club of eleven banks.
  • Hercules Unit Trust, a retail warehouse fund managed by Schroder Property and 41% owned by British Land, has refinanced its existing debt facilities with a new five year £350m line from Lloyds Banking Group, Metropolitan Life Insurance Company and Royal Bank of Scotland.
  • Deutsche Bank, Goldman Sachs and Morgan Stanley have provided a €600m unsecured 12 month bridge loan to Kabel Deutschland to finance the company’s acquisition of rival German cable company Tele Columbus.
  • FIG
    In a startling burst of activity that will give a measure of relief to those bankers fretting about the prospect of a slow second quarter, German healthcare company Fresenius is tapping almost all segments of the capital markets as it looks to finance its €3.1bn acquisition of Rhön-Klinikum, a hospital group.