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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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  • South Korean auto manufacturer Kia Motor Corp signed a $295.7m club loan late last month, finding demand from nine different banks for the dollar and euro-denominated deal.
  • Origin Energy and ConocoPhillips, sponsors of an Australian liquefied natural gas project, have completed a $2.625bn financing for a gas project in Queensland, according to bankers familiar with the deal. But Origin denied it has completed any project financing.
  • E-Land Fashion China Holdings signed a rare offshore renminbi loan late last week, closing a Rmb144.5m tranche as part of a HK$333m ($42.9m) dual-currency financing package.
  • Sino-Ocean Land wants to raise around $500m in the loan market, giving it part of the money to refinance a $700m loan that falls due in September. But the borrower will need to offer a lot more than it paid on the maturing deal if it is going to find demand in syndication, said bankers.
  • Domodedovo Airport, the busiest in Russia, closed its debut syndicated loan on Wednesday with a €165m deal.
  • Telefónica, the Baa1/A-/BBB+ rated Spanish firm, has refinanced part of the debt used to support its acquisition of O2 with new syndicated loans totalling £3.4bn.