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Ineos leveraged loan repricing and amendment blocked by investor consortium in rare pushback from lendersBy Carrie-Anne Holt in LondonIn early May, international chemicals group Ineos presented its lenders with an all too familiar dilemma in the red-hot leveraged loan market. Lenders were asked to approve the repricing on the company’s debt at a lower interest rate, or risk being bought out by more willing investors. Two weeks later Ineos pulled the supposedly routine deal following a blocking action spearheaded by a consortium of institutional investors, most of which were US-based. It marks the first time in recent memory that investors successfully blocked an amendment for a leveraged loan issuer. “I’ve heard about deals where there has been resistance but Ineos is the first time I’ve seen concrete evidence of a block of holders holding out,” said Andrew Shutter, a partner in Cleary Gottleib’s corporate law practice. Nevertheless, the Ineos rebellion is unlikely to prompt a broader insurgency by loan buyers and could ultimately work to its instigators disadvantage, according to Shutter and a number of market participants. The fear of alienating private equity sponsors and the omnipresent risk of refinancing should keep most investors from pushing back too hard, they said. read more... Source: http://www.ft.com/cms/s/4606f898-107f-11dc-96d3-000b5df10621,dwp_uuid=e8477cc4-c820-11db-b0dc-000b5df10621.html |
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