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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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  • Citigroup, Credit Suisse, Nomura and UBS are arranging the debt backing Apollo’s buyout of Belgian chemicals firm Taminco, and syndication of the loans will be led from the US.
  • Leveraged finance bankers have said that banks were supportive of a planned buy-out of French fuel pump provider Tokheim, which was cancelled this week when bids did not meet owner Cogentas’s expectations.
  • German defence company Rheinmetall (Baa3/BBB/BBB) has signed a €500m five year loan to replace a €400m facility completed in 2005 and due to mature in 2012.
  • A joint venture led by Qatar Petroleum has tapped the export finance market to fund the $10.4bn Barzan gas project.
  • South Africa’s Imperial Mobility has hammered out a €340m acquisition facility three months after it was first priced, after some tough negotiations to get the transaction signed.
  • German data centre builder and operator e-shelter has signed a €229m club loan with UniCredit, BayernLB and Deutsche Pfandbriefbank to refinance existing facilities and expand its sites in Frankfurt and Berlin.