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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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  • A new $200m 18 month loan for London-listed oil credit Afren is offering a margin of 900bp, according to bankers on the deal.
  • Loan volumes are set to remain low in the Middle East as companies continue deleveraging, according to a new report by ratings agency Moody’s.
  • Polish telecom company Polkomtel has raised Z1.753bn (€402m) for a term loan ‘C’ that will entirely replace the senior secured bridge in the Z14.3bn debt package backing Polish billionaire Zygmunt Solorz-Zak’s buyout of the firm.
  • Dutch airport operator Schipol Group has completed a new €175m revolving credit facility to replace a deal that is approaching maturity.
  • Finnish property group Sponda has signed a €375m syndicated agreement, split into a €275m term loan and a €100m back up revolver. The five year transaction has a margin of 170bp.
  • Indonesia’s Bakrie & Brothers moved closer to ending its loan financing woes this week, when domestic rival Borneo Lumbung Energi & Metal agreed to buy a $1bn stake in one of its companies. Loans bankers are now in discussions with Bakrie over the around $345m it still needs to pay back, but they are now likely to roll the loan over.