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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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French call centre operator Webhelp has signed a new €275m loan package to refinance existing debt. The largest tranche was flexed by 25bp, a sign of the adverse effect of market conditions on leveraged loan issuance, according to bankers close to the deal.
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The leads on Indonesia Eximbank’s $500m three year loan have finalised allocations after more than 20 lenders joined during general syndication.
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Korea National Oil Corp has opened up a $300m five year loan to the market, just a month after it issued a $630m guaranteed bond.
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The European leveraged loan market is proving its resilience. While investors flee the high yield bond market, new liquidity in the leveraged loan market continues to grow as European CLO issuance rumbles on. The steadfastness of these leveraged loan investors is a clear testament to the market’s true strength.
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New World Development has completed its line up of mandated lead arrangers and bookrunners to arrange its HK$8bn-HK$9bn ($1.3bn-$1.16bn) three year loan, said a banker on the deal.
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Goldman Sachs has become the first bank to join Alibaba Group’s jumbo $8bn loan with a $500m ticket.