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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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  • Italian electricity producer Enel has closed the books for its new syndicated credit facility, with the pricing premium offered bringing lenders flocking to the deal.
  • UK directory company Yell Group started its second round of debt repurchases on Wednesday. The buyback is expected to be concluded on or before March 2, according to a company statement.
  • An as-yet-unnamed large conglomerate in the Czech Republic has surprised international lenders by looking to raise a €1bn loan exclusively in its domestic market.
  • Credit Suisse has brought one lender into a loan for Philippine Airlines backed by receivables from credit card bookings, bringing the company closer to raising the $50m or so that it wants to get from other lenders. The Swiss bank signed a bilateral deal with the company last year, but has now moved to bring in more banks and increase the size of the transaction.
  • Thailand’s state-owned energy company PTT Exploration and Production Public Corp (PTTEP) is working on the documentation for a $300m club deal, and plans to sign the loan in the middle of next month.
  • Chinese property company Shui On Land has received around 11 commitments to a planned $410m loan. Several banks are still considering committing to the deal, but have not got much time left: the company plans to close the loan by the end of the month.