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Major sectors in leveraged loans are trading down, making shrewd credit selection vital
William Liu joins from K&L Gates
Buyers line up €11bn of debt and equity financing
Upper mid-market firms eschew ‘exciting’ stories as cracks emerge in European private credit
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This week, Permira Credit Solutions III (PCS3) signed its seventh investment this year, a credit line for the acquisition of Maxicoffee by Daltys. The direct lending market seems on course to surpass last year’s record numbers, said market sources.
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Speculative grade borrowers stayed on the sidelines of the primary market this week. While bankers said the deal pipeline has a healthy list of issuers ready to go in April, investors warned that they might be pickier than in the first quarter.
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European leveraged finance investors are expecting lower deal volumes and wider spreads in the primary market after an exceptionally busy and expensive 2017.
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Solusi Tunas Pratama, an Indonesian telecommunications company, has launched a $577m-equivalent dual-currency loan denominated in dollars and rupiah into general syndication.
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Five London boroughs are allocating a total of £250m of their pension funds' investments to private debt, in a move that could spark interest from other local authorities.
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US beauty retailer Coty announced pricing at the wide end of guidance for its $2.45bn-equivalent of new leveraged loans on Thursday, while reaching the end of the roadshow for $2bn-equivalent of new high yield bonds.