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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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  • Caffè Nero, the UK coffee shop chain, has issued a combination of junior and senior debt to refinance its loans and support its growth in the UK and abroad.
  • Pace, the UK company that provides technology and services for broadcasting and broadband, has completed its purchase of Aurora Networks after signing acquisition and refinancing loans totalling $460m.
  • Student accommodation firm Unite Capital Cities has cut its cost of bank financing by 150bp after signing debt facilities totalling £226m.
  • Russian pipeline valve producer Oil and Gas Systems has approached the development bank market for a facility of up to €150m, of which €50m is expected to be syndicated among commercial lenders.
  • Essar Energy’s $1.25bn two year loan, launched in mid-December, has netted one firm commitment already, with many more also circling the transaction.
  • ONGC Videsh, the international arm of Oil and Natural Gas Corp, is expected to mandate banks for its dollar loan on Wednesday January 7, with a strong showing from lenders leading to speculation that the company is likely to raise the final size to $1.5bn-$1.75bn from the mooted $1bn.