Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Iberdrola Leads Firms Seeking Lower Rates as Loan Yields Tumble

April 30 (Bloomberg) -- Spanish utility Iberdrola SA led companies seeking to lower rates on their loans as firms capitalize on demand for the floating-rate debt, with yields on loans poised to record the biggest monthly decline in seven months.

Iberdrola is asking lenders to increase a 1.5 billion-euro ($2 billion) credit line and reduce the amount allocated to them in a more expensive 1.5 billion-euro term loan portion of the financing, according to two people with knowledge of the deal who asked not to be identified because the information is private. TPF Generation Holdings LLC, a power plant operator, lowered the rate on a $425 million term loan it’s seeking to refinance debt.

Companies are seeking to refinance their debt as record inflows into funds that purchase speculative-grade loans has pushed the average yield on the debt to 5.62 percent, according to JPMorgan Chase & Co. That’s down from 5.77 percent at the start of the month, marking the biggest percentage decline since September.

Charterhouse Capital Partners LLP plans to tap U.S. investor demand for leveraged loans to fund its buyout of insulation products provider Armacell International Holding GmbH, according to two people with knowledge of the matter.

Performance Food Group Inc., a foodservice distributor, set the rate on a $530 million covenant-light term loan it’s seeking to refinance notes. The company is proposing to pay interest on the 6 1/2-year debt at 5.5 percentage points to 5.75 percentage points more than the London interbank offered rate, with a 1 percent minimum on the lending benchmark, according to a person with knowledge of the transaction.

The price of loans rose 0.01 cent to 98.55 cents on the dollar today, the highest level since July 2007, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 Index.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.