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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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  • Jaime Arriagada has moved to Santander in Madrid to become head of syndicated loans Europe, leading the group’s origination business.
  • Indonesia’s Tower Bersama Group is hoping to close a $200m loan next week, after it gets final commitments from two domestic banks still considering the deal. The lead managers are planning only a limited selldown, and have already lined up one commitment from an Indonesian lender.
  • French micro-connections business MIC has allocated its €355m of buyout loans with an original issue discount of 91, after the bookrunners cut the bullet term loan ‘B’ by €20m and increased the term loan ‘A’ by the same amount.
  • Arab Bank and Citi are leading a $180m term loan for Jordan’s Hikma Pharmaceuticals. The loan will finance acquisitions and general corporate purposes.
  • A syndicate of 39 lenders signed a €6bn credit facility for Germany’s BMW on Friday, with only a few lenders put off by the prospect of the auto firm being able to draw the facility in dollars.
  • Last Thursday, lenders were invited to a joint bank meeting held by Austria’s OMV and Petrom, a Romanian oil credit 51% owned by OMV.