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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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  • Gunvor Singapore, a subsidiary of energy trader Gunvor Group, has launched a $470m 364-day revolving credit facility into syndication, returning to the market to refinance a deal that matures in two months.
  • Indian Oil Corp has closed a $250m loan, getting strong demand from Taiwanese lenders among the 20 banks that committed to the transaction.
  • A special purpose vehicle of Russia’s third largest mobile operator, MegaFon, has obtained a $2bn bridge loan. Barclays, BNP Paribas and Citi are providing the short term facility to MegaFon Finance.
  • Some European investors have committed to Ineos’s $1.5bn-equivalent covenant-lite term loan, according to a banker close to the deal, in a sign that European investors may accept cov-lite structures in certain circumstances. The commitments have arrived even before Thursday’s bank meeting.
  • A less decisive poll result than usual this week as voters attempted to rationalise Russian credits Suek’s and Rosneft’s return to the market within six months of signing $1bn plus facilities.
  • Goldman Sachs veteran Doug Henderson has joined levloan and high yield investor Oak Hill Advisors as a partner in its London office, from where he will head the firm’s European performing credit business.