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Syndicated Loans

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  • Finland’s Mesto has signed €800m of revolving credit facility, as the industrial machinery company builds up its cash war chest in preparation for its partial demerger.
  • The number of syndicated loans in Asia has reached a new low this year, as the market takes a hit from volatility and regulatory headaches around funding M&A transactions. There is no respite in sight, however, with bankers predicting a tough end to 2019. Pan Yue reports.
  • Lenders have allowed a cut to Turkish bank margins in their latest refinancing round, according to people familiar with the matter, as the lira recovers from its 2018 crash and the local regulator becomes tougher on bad loans.
  • A brutal market for auto suppliers and a string of dividend deals have left Lumileds, a maker of LED lighting and an Apollo portfolio company, staring at a leverage level which could top 14 times by year-end, according to Moody’s. The company’s loan saw the largest price fall in Europe over the last quarter, according to IHS Markit, and is now bid around 47, compared with 70 in June.
  • Landesbank Baden-Württemberg has long held the crown as the top Schuldschein arranger, but even as the market internationalises the Stuttgart-based bank has retained its ability to cope with deal flow, as well as push the market beyond its usual borders.
  • The UK’s South West Water has amended the margin on a loan to be priced as a spread against Sonia just days after the Bank of England said the loan market needs to do more to prepare for the cessation of Libor.