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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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  • Telecom Italia is looking to launch a new syndicated facility, following on from the success of deals from other corporate borrowers from peripheral Europe in recent weeks.
  • Bakrie Telecom is in discussions with loans bankers about a facility to help it pay back a Rp650bn ($71.4m) bond falling due in September, as well as meeting principal payments of some Rp660bn of leases falling due this year.
  • China’s Home Inns & Hotels Management found enough demand for its $240m loan last year to reduce the two bookrunners below the holding levels and attracted commitments from 11 different banks in syndication, according to allocation figures released this week.
  • Korea Development Bank plans to raise around $2bn in the loan market this year, according to a funding official this week. But despite the recent success of a Ninja loan from one of its domestic rivals, the policy bank is more likely to tap the bond market for its yen funding.
  • Industrial Bank of Korea closed a ¥21bn ($258.7m) syndicated loan this week, becoming the first Korean borrower to sign a deal with commitments entirely from Japanese lenders —what the market calls a Ninja loan.
  • Korea Development Bank plans to raise around $2bn in the loan market this year, said a funding official. But despite the recent success of a Ninja loan from one of its domestic rivals, the policy bank is more likely to tap the bond market for its yen funding.