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Apr 11, 2014

Highly-leveraged U.S. loans continue unabated

NEW YORK (Reuters) – Banks keep underwriting highly leveraged loans for low-rated companies that are drawing U.S. regulators’ attention, Thomson Reuters LPC data show, despite a looming review by the federal agencies that are trying to clamp down on these transactions.

There has been no let-up in deals that could run afoul of year-old regulatory hurdles, which require banks to hold more reserves and possibly pay fines, in the weeks leading up to reviews of their loan portfolios by the Office of the Comptroller of the Currency, the Federal Reserve and Federal Deposit Insurance Corp.

Apr 11, 2014

TRLPC: Highly-leveraged U.S. loans continue unabated

NEW YORK, April 11 (Reuters) – Banks keep underwriting
highly leveraged loans for low-rated companies that are drawing
U.S. regulators’ attention, Thomson Reuters LPC data show,
despite a looming review by the federal agencies that are trying
to clamp down on these transactions.

There has been no let-up in deals that could run afoul of
year-old regulatory hurdles, which require banks to hold more
reserves and possibly pay fines, in the weeks leading up to
reviews of their loan portfolios by the Office of the
Comptroller of the Currency, the Federal Reserve and Federal
Deposit Insurance Corp.

Mar 14, 2014

RLPC: Investors deter some US loan deals, but still issuers’ market

NEW YORK, March 14 (Reuters) – Two deals were pulled from
the U.S. leveraged loan market since late February, but this
fringe resistance is doing little to change issuer-friendly
dynamics that still allow opportunistic companies to push
through aggressive financings, investors and arranging banks
said.

Demand still far exceeds the limited supply of new loans,
preserving the technical status quo, even though it has
moderated from a year amid regulatory uncertainties and asset
bubble concerns.

Feb 4, 2014

RLPC: YRC loan refinancing hauling in up to $250M savings – CFO

NEW YORK, Feb 4 (Reuters) – Trucking company YRC Worldwide
Inc, fresh off a hard-fought Teamsters contract
extension that paved the way for debt restructuring, will save
up to $250 million over the next five years with a leveraged
loan refinancing now in the market, Chief Financial Officer
Jamie Pierson told Thomson Reuters LPC.

The company, on the brink of bankruptcy about two years ago,
got relief late last month from a five-year contract extension
with union members that had voted down a prior version.

Jan 28, 2014

RLPC: Companies still have upper hand in U.S. leveraged loans

NEW YORK, Jan 28 (Reuters) – It’s an issuer’s market again
in 2014 for U.S. leveraged loans, with few detour signs on this
one-way road.

Investors battling for floating-rate assets to hedge rising
interest rates, often favoring secured loans over riskier junk
bonds, are empowering lower-rated companies to keep slashing
yields and whittling away buyer protections.

Nov 28, 2013

More European, Asian firms migrate to US lev loan market

LONDON, Nov 27 (Reuters) – More European and Asian companies
are borrowing in the U.S. leveraged loan market where costs are
low and restrictive covenants do not apply as cash-rich US
investors facing limited deal supply warm to foreign borrowers.

Nearly 30 percent more European companies have raised dollar
loans in the United States this year than in 2012, as the highly
liquid U.S. institutional market moves towards becoming a
global, rather than a regional, market.

Nov 22, 2013

Banks heed regulators’ concerns on U.S. leveraged loans

NEW YORK (Reuters) – Banks are poring over US leveraged loan portfolios to assess whether they will be able to lend as much to risky lower-rated companies and private equity buyouts after attracting regulators’ ire, bankers and lawyers said.

U.S. regulators are keeping closer tabs on how banks are managing the high-risk lending that triggered the financial crisis, including leveraged loans financing acquisitions and dividend payments.

Oct 3, 2013

RLPC: Neiman Marcus readies $3.75B buyout loan

NEW YORK, Oct 3 (Reuters) – Neiman Marcus Group
set a Monday bank meeting to launch a $3.75 billion loan backing
the $6 billion takeover of the U.S. luxury department store
chain by two private investors, sources told Thomson Reuters
LPC.

The funding is split between a $2.95 billion, seven-year
first-lien covenant-lite term loan and an $800 million,
five-year asset-based loan. Price guidance is to be determined.

Sep 20, 2013

U.S. leveraged loan buyers undeterred by Fed, regulation

NEW YORK (Reuters) – The Federal Reserve’s no-taper decision kicks interest rate hikes further down the road, yet investors still pour into U.S. leveraged loans to hedge duration risk and are willing to accept riskier terms for a share of the limited net new supply, said speakers at the 19th Annual Thomson Reuters LPC Loan and CLO Conference.

The loan market could be vulnerable if investors start to favor high yield bonds as rates rise, but there is little sign that loan demand will fall short of supply any time soon. Interest will rise, and loan products, pegged off of Libor, offer relatively secure floating-rate exposure.

Sep 20, 2013

RLPC: U.S. leveraged loan buyers undeterred by Fed, regulation

NEW YORK, Sept 20 (Reuters) – The Federal Reserve’s no-taper
decision kicks interest rate hikes further down the road, yet
investors still pour into U.S. leveraged loans to hedge duration
risk and are willing to accept riskier terms for a share of the
limited net new supply, said speakers at the 19th Annual Thomson
Reuters LPC Loan and CLO Conference.

The loan market could be vulnerable if investors start to
favor high yield bonds as rates rise, but there is little sign
that loan demand will fall short of supply any time soon.
Interest will rise, and loan products, pegged off of Libor,
offer relatively secure floating-rate exposure.