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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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Belgian food producer Continental Foods has set pricing on a €425m loan that will be used to pay a dividend to its owner, CVC Capital Partners.
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The power of corporate borrowers in the leveraged loan market has taken a beating in the last three weeks. Investor pushback drove changes of terms on a series of deals, the most recent being the term loan ‘B’ portion of a €7.5bn facility for DE Master Blenders. But this is just a blip. Borrower clout in the leveraged market is still growing, and the shift to the dominance of covenant-lite deals looks inevitable.
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Private healthcare group Generale de Santé will hold a bank meeting this week for a €1.75bn loan to back its takeover by Ramsay Santé.
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Wugang Trading has launched a $150m three year bullet loan into syndication, and is counting on a guarantee from Industrial and Commercial Bank of China to mitigate against the risks faced by the iron and steel sector.
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Using a special purpose vehicle, Dutch port terminals developer Heysta Energy has priced the €350m facility that backs its buyout of HES Beheer.
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Philippines-based oil refining and marketing company Petron Corp, which opened up a $300m loan into senior syndication towards the end of May, has now wrapped up the top level phase.