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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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  • South African precious metals producer Gold Fields has cut its margin, increased the size, and extended the tenor on its new $1bn revolving credit. The five year facility will replace a $450m three year loan signed last year which paid a margin of 175bp. The new margin is under 130bp, according to loans bankers.
  • Norwegian hydropower utility Hafslund has signed a Nkr3.6bn ($645m) revolving credit to refinance a Eu400m deal set to expire next year. The new five year plus one plus one transaction will be used for general corporate purposes.
  • Iberdrola signed its Eu3bn five year loan facility on Wednesday after many international lenders joined the deal at the top level as bookrunners on tickets of Eu175m.
  • International Service System (ISS) received consent from lenders to make amendments to its loans to give the company more flexibility. In addition, 96.5% of lenders approved the Danish cleaning company’s proposals to extend the maturities of certain tranches of its debt by two years.
  • Syndication has closed on a $2bn seven year refinancing for West African oil firm Kosmos Energy.
  • Norwegian engineering and construction company Kværner has signed a Nkr3bn ($541m) deal as part of its split from Aker Solutions and to support the planned listing of the company on the Oslo stock exchange.