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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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  • Louis Dreyfus has secured four early commitments to a $200m three and five year loan. The five year maturity is unusual for a commodities company but lenders have flocked to the deal — and bankers expect more to join over the next two weeks.
  • India’s Reliance Industries hit the market with a $1.09bn term loan on June 24, beating a crowd of Indian companies looking to launch deals. The regular borrower is offering attractive pricing to help it compete for commitments against its compatriots.
  • Wilmar signs increased deal after 16 lenders join facility
  • Kazakh privately owned rail freight operator Eastcomtrans has launched syndication of a $100m five year amortising loan. BNP Paribas is bookrunner on the fully underwritten transaction. The loan is to finance the acquisition of 1,000 new Ukrainian freight wagons.
  • Tarkett, the French flooring firm, has signed a Eu450m five year revolving credit line with a margin of 80bp. BNP Paribas, Commerzbank, Crédit Agricole, Crédit Lyonnais, HSBC and Société Générale led the deal as mandated lead arrangers and bookrunners.
  • The total size of a jumbo refinancing deal for Russia’s Rusal will depend on the size of commitments received from its club of 10 lenders, according to bankers close to the deal.