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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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  • HSBC and JP Morgan are expected to be in the bank group arranging more than £430m of senior and mezzanine loans backing Cinven’s buy-out of group CPA Global, although a number of other banks are close to the process with the bookrunners yet to be finalised.
  • Rusal’s lending group had to adopt a “pragmatic stance” after heavy negotiations saw a covenant holiday option added to the aluminium producer’s October 2011 $4.75bn pre-export finance package, according to a banker.
  • Hungarian construction company TriGranit has raised €190m from five banks as lending in eastern Europe comes under the regulatory spotlight.
  • Finnprotein has completed a new seven year syndicated loan of €65m to back the construction of the largest soy bean processing plant in Europe.
  • Tramlink Nottingham will soon start syndicating £421.24m of senior facilities making up the debt package for a £570m project for phase two of the Nottingham Express Transit network.
  • Deutsche Bank has provided a €250m letter of credit facility for Müller Dairy to back the firm’s £279.5m takeover of milk producer Robert Wiseman Dairies.