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.
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.
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
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.
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.
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.
(Reuters) – Market turbulence has prompted U.S. companies to shelve more than $14 billion in loans meant to slice borrowing costs or fund shareholder dividends, confining most issuance to borrowers with imminent financing needs.
At least 15 of these opportunistic deals have been pulled since late-May, with more withdrawals likely, while issuers that have opted to forge ahead with their deals have been forced to sweeten terms to lure investors.
By Lynn Adler
(Reuters) – Bank regulators issued the first risk controls in a dozen years for lending to faltering companies, tempering some proposals the flourishing industry viewed as most egregious and expensive.
The new standards, crafted to avert a repeat of the type of bubble that sank the U.S. housing market and helped trigger a recession, define more loans as leveraged or criticized for repayment.
NEW YORK, March 7 (Reuters) – U.S. leveraged loan issuance
in the short month of February leapfrogged the prior record
monthly high set six years ago. But investors still hunger for
an unlikely surge in new money deals that M&A and leveraged
buyouts could spawn.
Total issuance topped the prior peak by 30 percent. The
composition shifted, however, from an LBO-driven 2007 spree to a
refinancing and repricing spurt as issuers cash in on
rock-bottom borrowing costs.
NEW YORK, Feb 1 (Reuters) – A U.S. leveraged loan repricing
spree that sliced spreads dramatically in January still has room
to run before a credit bubble forms or an investor roadblock
emerges, analysts and asset managers say.
Money is expected to keep flooding into loan mutual funds
and collateralized loan obligations (CLOs) as investors are
starving for high-yielding assets and eager to minimize duration
risk as a growing economy boosts interest rates. Meanwhile, loan
spreads remain well above those reached before the financial
crisis and all-in yields are similar to those seen pre-crisis
while loan structures are stronger.
By Lynn Adler
(Reuters) – U.S. rail and trucking companies are making big investments on both sides of the border with Mexico to capitalize on booming trade between the two countries.
Every day, about 10 Kansas City Southern trains hauling everything from cars to chemicals crisscross the border between Mexico and the United States at Laredo, Texas, up from about six just three years ago.