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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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  • Indian manufacturer Bharat Forge went on a roadshow this week, meeting potential lenders to pitch a planned $120m loan. Funding officials from the company met lenders in Singapore and Taipei, and drew more than 20 banks to the meetings.
  • Tower Bersama Group will wait until next week at the earliest to close its $200m loan, although the deal has already been underwritten. Three of the loan’s arrangers are planning to sell down around $30m between them.
  • African Development Bank (AfDB) hopes to increase the number of A/B structured loans and co-financing deals it executes as it develops its lending strategy.
  • Hong Kong bankers warned this week that the prospect of a liquid interbank rate for use as a reference for the offshore renminbi loan market remained a long way off. But even when it is put in place, it may not be the panacea that some are hoping.
  • Canada’s Sunshine Oilsands has picked three banks to manage a $1bn listing, and hoped to close the deal before the end of the year. But torrid market conditions could force the company to wait, said bankers.
  • Indonesian palm oil company Bakrie Sumatera Plantations signed a $237.5m loan at the end of last week, finding enough money to repay a maturing $185m bond only a week before it fell due.