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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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China Banking Corp (Chinabank), BFI Finance, and China Universal Leasing are the latest financial institutions to tap the offshore syndicated loan market. The three fundraisings continue the trend of companies looking to capitalise on the difference in borrowing costs overseas and lending rates at home.
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Real estate developer Vietnam Investment Group Joint Stock Co (VIG) is looking to borrow $125m offshore in a deal led by one bank.
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Steel company ArcelorMittal has refinanced a $6bn revolving credit facility, with heavy oversubscription.
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Xella, the German building materials manufacturer, has closed books on a €533m refinancing and amend-and-extend loan procedure that was oversubscribed, allowing for price cuts.
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HNA Airport Holdings is in the market for a $70m loan that will be used for extension of the Sanya International Airport.
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Syndicated loan banks are standing strong against the highly rated Swiss company that is demanding negative interest payments on its drawn Swiss franc term loan. One senior banker said there was no negotiation about it. “The banking syndicate has said no,” he said.