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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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  • Italy’s RCS MediaGroup has refinanced its bank debt, increasing the lines from €575m to €600m, cutting costs and extending the maturity of its facilities.
  • British amusement park operator Merlin Entertainments has asked lenders to extend the maturity on all its senior tranches to 2019, as well as re-tranche its debt to feature US dollars more heavily.
  • Dubai state owned hotel operator Jumeirah Group has mandated banks for a $1.4bn six year loan. This is the second loan mandate for a hotel operator in Dubai in two weeks as borrowers capitalise on a wave of positive sentiment surrounding the emirate.
  • A joint venture between Qatar’s Midmac Contracting Co and Turkey’s Yuksel Insaat has signed a QR1.66bn ($456m) loan for a new infrastructure project in Qatar, as the country prepares to host the 2022 football world cup.
  • Russian potash firm Uralkali is due to sign its five year pre-export finance (PXF) facility on Thursday, with the final deal holding a “bit of a surprise,” according to a senior loans banker who refused to elaborate.
  • Saudi-listed firm National Petrochemical Company (Petrochem) has signed a $600m two year Islamic financing agreement with Riyad Bank.