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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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  • FIG
    Traders are reporting small signs of activity following nearly €6bn of repayments to loan investors last week, but said that it was not enough to have a meaningful effect on the market.
  • Hikma Pharmaceuticals has arranged a seven year loan to back its acquisition of Morocco’s Société de Promotion Pharmaceutique du Maghreb (Promopharm).
  • Orascom Construction Industries (OCI), a producer of construction materials and fertiliser — and one of the first private Egyptian borrowers to approach international banks for financing since the country's recent revolution — has completed loans of $2.2bn.
  • Hindustan Petroleum Corp increased the size of its five year term loan to $465m when it signed the deal last week. The company attracted 13 banks alongside the three bookrunners, allowing it to boost the loan from an initial $300m target.
  • Zambia’s Konkola Copper Mines has signed a $700m term loan arranged and underwritten by Standard Bank, which has also provided a $500m bridge facility to refinance shareholder loans with its parent, Vedanta Resources.
  • A bank meeting is being held in London on Tuesday to launch general syndication of Swedish cable company Com Hem’s Skr7.1bn (€775m) of leveraged loans.