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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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Bankers and investors are still complaining about the lack of single-B rated issuers in the European high yield market this year, but 2017 will bring little relief, Fitch said on Wednesday.
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Investment grade corporate bond issuance kept up a steady pace this week, as borrowers took advantage of one of 2016’s last clear weeks for issuance. But far from being putt off by new issue premiums growing plump as turkeys in a market worried about interest rate risk, issuers know conditions could well be worse in the new year.
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The ECB’s announcement it was planning leveraged lending rules for the banks it supervises has been polarising, confusing, and often emotional. But the market will come to appreciate it in time.
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Elysium Healthcare, a portfolio of 22 UK mental healthcare facilities being divested by Acadia Group, held a lender meeting on Thursday for £240m of loans following its £320m buyout by BC Partners.
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Morpho leads the way for European leveraged loan issuance this week, the largest of five deals in the market and the largest euro leveraged buyout of the year by some distance.
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The credit arms of private equity firms CVC and EQT have joined efforts to provide Paymentsense, the UK card payment services firm, with a refinancing unitranche facility — a form of financing that could increase next year.