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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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  • OW Bunker oversubscribed — Magotteaux takes revolver — CFAO signs early refi — Pace completes acquisition loan
  • Russia's Siberian Coal Energy Co (Suek) is in the documentation stage of a $1.2bn pre-export finance (PXF) facility that investors say has shrugged off market scepticism to attract large enough commitments that bankers expect to be scaled back.
  • Norwegian firms close before Christmas — Finda signs refi — Caffè Nero obtains £275m — Unitranche backs INSEEC LBO — Sophos markets cov-lite — Algeco increases revolver
  • Investors may not like it, but leveraged loan bankers seem to be in agreement: covenant-lite debt is coming to Europe.
  • Scout24, the German online directories and listings business, expects to hold a bank meeting next week to market €650m of drawn debt backing its partial takeover by Hellman & Friedman.
  • Medium-sized leveraged companies are increasingly turning to unitranche debt as an alternative means of funding buyouts, according to a new report by Altium, a debt advisor. Leveraged loan issuance overall, meanwhile, reached a six year high in 2013.