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Jul 29, 2015

Commodity loans weighed by Chinese stock market, impending U.S. rate hike

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.

Jul 29, 2015

TRLPC: Commodity loans weighed by Chinese stock market, impending US rate hike

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
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.

Apr 24, 2015

Acosta’s loan refinancing tests US regulators

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.

Feb 27, 2015

Retail loan investors return as rate rises near

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.

Jan 22, 2015

Apollo to pay more on Presidio amid reputational, credit questions

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.

Dec 18, 2014

TRLPC: Oil slump to curb secondary market gains in January

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.”

Oct 28, 2014

TRLPC: TOMS struggles to sell loan amid volatility, brand perception

NEW YORK, Oct 28 (Reuters) – TOMS Shoes deepened the
original issue discount on its $300 million term loan B and
raised the Libor spread by 75bp as volatile market conditions
have made it difficult to attract loan investors to the credit,
sources told Thomson Reuters LPC.

Investors also have cited concerns about the “faddish”
nature of the shoe company’s products.

Aug 8, 2014

Charter cuts loan size, increases pricing in choppy market

NEW YORK, Aug 8 (Reuters) – Cable company Charter
Communications cut the size of its term debt and made lender
friendly changes on Friday, driven by choppy market conditions,
sources said.

This is one of a batch of deals facing higher borrowing
costs as investors balk at pricing levels due to growing
volatility in the equity and high-yield markets.

Jun 7, 2013

U.S. loan prices hold up well amid volatility

NEW YORK (Reuters) – U.S. secondary loan prices are seeing their first bout of weakness since the beginning of the year, pressured by macroeconomic concern that the Federal Reserve will slow its quantitative easing program which has already crushed high yield bond prices.

US leveraged loans had a relatively small 23bp correction to 98.82 on Thursday but remain well insulated as the only major fund class to see inflows last week. Nearly $1 billion of cash flowed into bank loan mutual funds, compared to a record $4.6 billion outflow from high yield, according to Lipper FMI.

Apr 4, 2013

RLPC: First actively managed senior loan ETF launches

NEW YORK, April 4 (Reuters) – The leveraged loan world
welcomed the first ever actively managed exchange traded fund
(ETF) focused on senior bank loans today.

State Street Corp and the Blackstone Group’s
new senior loan ETF began trading today on the NYSE Arca under
the symbol SRLN.

    • About Lisa

      "Lisa Lee writes about mergers, corporate finance and the retail and consumer sectors from New York. She previously was a columnist at Dow Jones and a reporter at the Deal and Reuters. Prior to moving into journalism, Lisa was a leveraged finance banker at GE Capital. She also has worked on international trade issues for the U.S. Senate Finance Committee. Lisa started her career structuring cross-border joint-ventures in Korea and holds a bachelor’s degree in history from Yale and an MBA from Columbia."
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