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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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  • Parkson Retail Group has increased an outstanding loan by $150m, bringing the total size of the deal to $400m — and adding a Hong Kong dollar tranche in the process.
  • The commitment deadline for the highly anticipated Norilsk Nickel $1.5bn pre-export finance transaction has been pushed back by up to 10 days as the final banks to join take extra time to evaluate their interest.
  • ONGC Mangalore Petrochemicals has launched a $250m three-tranche loan, fully underwritten by State Bank of India. The lender is still deciding how much of the deal to sell down but looks likely to accept commitments until the middle of January.
  • Korean policy banks will struggle to win commitments from Taiwanese lenders next year, after isolating these lenders by fending off their attempts to trigger market disruption clauses.
  • Investment manager Alcentra intends to raise more than £150m through a European senior loan fund that it will list on the London Stock Exchange. In November, rival fund Avoca Capital announced its plans to raise at least €60m on a listed fund.
  • FIG
    Turkey’s Finansbank has successfully extended a portion of its November 2010 loan without changing the margin even as lending banks’ cost of funding remains high.