NEW YORK (Reuters) – U.S. investors’ exposure limits for the technology sector are being tested after three loans totaling U.S.$13.8bn hit the market in recent weeks, with another massive deal looming to finance computer titan Dell’s US$67bn acquisition of EMC Corp.
The transactions include a US$7.5bn loan for chipmaker Avago Technologies and a US$3.6bn deal backing the buyout of data storage provider Veritas which are in the market, while a US$2.7bn loan for Dutch chipmaker NXP Semiconductors has recently closed.
Nov 5 (Reuters) – Banks’ exposure to junk-rated companies
and the oil and gas sector remain high, according to an annual
report on loan quality by U.S. bank regulators released
The regulators gave a negative classification to $372.6
billion out of $3.9 trillion in loans impacted by the review, or
9.5 percent of the loans. Classified loans increased 9.4 percent
from a year ago.
NEW YORK (Reuters) – U.S.regulators criticized some reserve-based lending (RBL) facilities from exploration and production (E&P) issuers during an annual bank loan review after oil prices were cut in half from more than $100 in July 2014, making it less likely these lenders will provide more credit to these cash-strapped energy companies, sources close to the process said.
Banks backing the criticized loans have had to set aside more capital against those deemed by regulators to be riskier. The lenders will be more cautious in extending loans to oil and gas companies, and other sources of capital will be more costly for already struggling borrowers.
NEW YORK (Reuters) – Market volatility drove US syndicated lending down 29% in the third quarter from the prior quarter, and year-to-date funding down 12% to a three-year low, Thomson Reuters LPC data shows.
Concerns about China’s economy and uncertainty about Federal Reserve policy, the main sources of volatility in the quarter, are expected to persist and restrain syndicated lending at least through year end, bankers and investors said.
NEW YORK, Sept 25 (Reuters) – The Federal Reserve’s decision
not to raise interest rates in mid-September will delay an
anticipated upturn in demand for floating-rate bank loan mutual
funds, analysts and portfolio managers said.
Investors have withdrawn a net US$10.9 billion so far this
year from loan funds, including exchange traded funds (ETFs),
after withdrawing US$23.9 billion in 2014, according to Lipper.
NEW YORK, Sept 11 (Reuters) – U.S. regulators are
scrutinizing the impact of falling energy prices on bank loans
in a move that could make it more difficult for lenders to
extend extra credit to troubled oil and gas companies, sources
familiar with the review said.
A halving of the price of oil since the summer has cut the
value of assets used by energy companies as collateral for their
bank loans, raising the possibility these loans will be
classified as troubled in an annual regulatory review set to be
published in the autumn.
NEW YORK (Reuters) – Leverage on the biggest U.S. corporate buyout loans has crept above regulators’ target of six times to 6.14 times in the third quarter, but is broadly in line with guidelines for the year to date, according to Thomson Reuters LPC data.
Leverage levels hit a two-year low of 5.99 times earnings before interest, tax, depreciation and amortization (Ebitda) in the first quarter of this year after regulators started to enforce leveraged lending guidelines more forcefully in late 2014.
NEW YORK, Sept 4 (Reuters) – Leverage on the biggest U.S.
corporate buyout loans has crept above regulators’ target of six
times to 6.14 times in the third quarter, but is broadly in line
with guidelines for the year to date, according to Thomson
Reuters LPC data.
Leverage levels hit a two-year low of 5.99 times earnings before
interest, tax, depreciation and amortization (Ebitda) in the
first quarter of this year after regulators started to enforce
leveraged lending guidelines more forcefully in late 2014.
NEW YORK, Aug 18 (Reuters) – U.S. leveraged loans, the
private market for financing low-rated companies, could
ironically be an island of relative safety when the Federal
Reserve shifts gears and starts hiking interest rates for the
first time in nearly a decade.
Floating rates, senior ranking for debt repayment and
features guaranteeing minimum yields, should lead the asset
class to outperform others including high-yield bonds as U.S.
rates increase, analysts and investors said.
NEW YORK (Reuters) – Truck and engine maker Navistar International Corp sweetened terms to lure investors to a $1 billion loan refinancing, soon after paying hefty premiums to place an asset-backed debt deal on the heels of a federal lawsuit filed against the company.
Wider spreads and enhanced call protection were among features that should ensure the new loan, meant to refinance a smaller amount of existing debt and give the company a liquidity boost, gets done, an investor said.