LONDON, Oct 8 (Reuters) – Average bids on US and European
secondary loan prices have fallen in the last two weeks as the
market grapples with global growth concerns and credit issues
that are hitting the oil, mining and auto sectors.
The average bid in the SMi100 index of the 100 most widely
held US loans has fallen 63 basis points (bp) to 98.21 percent
of face value since September 22, tracking widening high-yield
bond prices, according to LSTA/Thomson Reuters LPC data.
NEW YORK (Reuters) – The scandal over German automaker Volkswagen’s (VOWG_p.DE: Quote, Profile, Research, Stock Buzz) rigged U.S. diesel emission tests is putting pressure on the secondary prices of term loans for auto suppliers as loan investors assess the fallout on the sector.
The average bid in the automotive sector fell to 98.42% of face value on Monday, September 28, down more than 50bp from 98.95 on September 21, before the widening Volkswagen scandal started to hit its peers.
NEW YORK, Sept 18 (Reuters) – Investors are hearing there
will be aggressive pricing terms on a US$2.3bn seven-year term
loan backing telecommunications operator Cablevision’s US$17.7bn
acquisition by European telecoms giant Altice, sources said.
The market is anticipating price talk of 350bp over Libor
with a 1% floor and a discount of 99. The bank meeting for the
loan is scheduled for Monday.
NEW YORK, August 27 (Reuters) – US coal producer Peabody
Energy’s US$1.2bn term loan traded unchanged at around
73-74 percent of face value in the US secondary loan market,
loan traders said on Thursday, following press reports that the
struggling company has hired Lazard Ltd to help to
restructure its debt amid plunging commodity prices.
Secondary pricing on the US$1.2bn term loan which is due to
mature in 2020 held steady on levels seen earlier in the week
before news broke that Peabody is seeking to revise its capital
structure and restructure and reduce US$6.3bn of debt.
NEW YORK (Reuters) – Slumping commodity prices are hitting the secondary loan prices of iron ore, oil services and coal companies as China’s stock market volatility raises fears that demand in the world’s most commodity-hungry economy is cooling and global markets brace for an imminent U.S. interest rate rise.
Secondary bids for Australian iron ore company Fortescue Metals Group gained one point on Wednesday to 82.5-82.5 percent of face value, rebounding from its one point fall on Monday after Shanghai’s stock market saw its biggest drop in eight years. Fortescue’s loan was trading at around 87 percent of face value on July 5.
NEW YORK, July 29 (Reuters) – Slumping commodity prices are
hitting the secondary loan prices of iron ore, oil services and
coal companies as China’s stock market volatility raises fears
that demand in the world’s most commodity-hungry economy is
cooling and global markets brace for an imminent U.S. interest
Secondary bids for Australian iron ore company Fortescue
Metals Group gained one point on Wednesday to 82.5-82.5 percent
of face value, rebounding from its one point fall on Monday
after Shanghai’s stock market saw its biggest drop in eight
years. Fortescue’s loan was trading at around 87 percent of face
value on July 5.
LONDON, April 24 (Reuters) – A $2.06 billion term loan for
sales and marketing agency Acosta Inc is testing the US
leveraged loan market’s ability to refinance existing loans with
high leverage levels as regulators try to curb riskier lending.
The Federal Reserve, the Office of the Comptroller of the
Currency (OCC) and Federal Deposit Insurance Corporation stepped
up efforts to clamp down on new buyouts with higher leverage
late last year, but the position on refinancing existing loans
has been less clear to date.
NEW YORK (Reuters) – Retail investors are returning to bank loan mutual funds following seven straight months of outflows, with the Federal Reserve more clearly signaling an interest rate hike and higher secondary loan market prices starting to attract momentum buyers, investors and strategists said.
The first weekly inflows of $130 million broke a 31-week streak of outflows in the week ending February 18. Although net flows turned negative again with $118 million withdrawn in the week ending February 25, they have moderated and are seen turning positive with Fed rate hikes nearer, these sources said.
NEW YORK, Jan 22 (Reuters) – The term debt financing backing
Apollo Global Management LLC’s buyout of information
technology services provider Presidio Inc is facing pushback
from loan investors wary of an unpopular sponsor, the deal’s
high leverage and issues related to the credit itself.
The $650 million term debt facility has been struggling to
attract enough buyers since the deal was launched in early
January, people familiar with the planned borrowing said.
NEW YORK, Dec 18 (Reuters) – Secondary loan market gains in
January, a typically profitable month for investors, could be
muted in early 2015 if the recent oil price rout and ensuing
drag prolongs into the New Year.
“There should still be some technical support in January,”
said Steven Oh, global head of fixed income at PineBridge
Investments. “But given negative sentiment, that technical
uplift may only offset the current downside pressure, resulting
in a leveling off in January rather than price increases.”