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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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  • Simon Penniston will retire from the European syndicated loan market this summer after a career in banking lasting 38 years, most recently as head of the financial loan markets team at Lloyds Banking Group in London. His last day will be on June 19.
  • Chongqing Grain Group has closed syndication of its $150m three year loan, with signing scheduled for mid-June. The deal was oversubscribed, and is likely to increase.
  • Bankers working on M2 Telecommunications Group’s A$400m ($386.1m) loan have signed the deal, opting to close it as a club rather than taking it into syndication.
  • Australian mining company Arrium has closed its $750m dual-tranche loan, and plans to increase the size by $50m after getting enough demand.
  • Steel company Yongnam Holdings signed a S$130m ($102.9m) club loan with four banks on May 28, with plans to use the proceeds for general corporate purposes.
  • German media corporation ProSiebenSat.1 has obtained consent from a majority of its lenders to pay back part of its debt ahead of maturity, as well as amend and extend part of its term loan ‘D’.