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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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  • Pricing in the European investment grade market has hit its nadir, and the margins on offer are expected to rise from September, according to a EuroWeek survey of market participants.
  • A syndicate of five mezzanine investors has provided €393.5m of mezzanine loans to partly finance the buy-out of Swedish security firm Securitas Direct by Bain Capital and Hellman & Friedman. The facility will replace the underwritten unsecured bridge loan that the six-strong bank group had underwritten as part of a highly-levered financing.
  • Several Indian banks are mulling a trip to the loan market despite a record number of deals from their compatriots this year. Borrowers think there is still enough liquidity available, and are now sounding out banks about possible deals.
  • Trinity Mirror, the UK newspaper publisher, will refinance a £178.5m bank facility maturing in June 2013 next year.
  • WestLB is co-ordinating a refinancing deal for Turkey’s Vakifbank. The loan will refinance the one year portion of the $145m and €453m one year deal it signed in September 2010.
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    WestLB is co-ordinating a refinancing deal for Turkey’s Vakifbank. The loan will refinance the one year portion of the $145m and €453m one year deal it signed in September 2010.