Credit Suisse Looking To Jump Loan Gun Again?

Posted by John Carney, Feb 27, 2008, 4:29pm

It looks like Credit Suisse is getting ready to front-run the financing syndicate for the pending $20 billion buyout of Clear Channel Communications. Reuters reporters Jonathan “Keen Eye” Keehner and Brit beauty Megan Davies are reporting that a source tells them the Swiss bank has called potential investors regarding a chunk of the loans and asked what price they would be interested in paying.

Lenders typically attempt to make a coordinated effort to bring loans to market but Credit Suisse has already shown that it is willing to break with this practice. It previously sold off its commitments to the acquisition funding of Harrah's Entertainment Inc.

DealBreaker has been told by sources that Credit Suisse is eager to move its backlog of loan commitments so that it can participate in the financing of new deals at a time when the balance sheets of competitors may still be weighted down by unsold leveraged loans.

CS looks to sell Clear Channel loans - source [Reuters]

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Posted in: Credit Suisse
Tags: Clear Channel, leveraged loans, syndicated loans

Comments

Posted by guest, Feb 27, 2008 4:53PM

Only taking orders on tickets > $100mm

Posted by guest, Feb 27, 2008 4:55PM

Only taking orders on tickets > $100mm

Posted by Johnny Debacle, Feb 27, 2008 5:09PM

Who has capacity or the desire to put in for $100mm tickets in the leveraged loan space? Anyone?

Posted by guest, Feb 27, 2008 5:18PM

Hedgefunds, Crossover Accounts, CLO Managers. A lot of people actually.

Posted by Johnny Debacle, Feb 27, 2008 5:39PM

Then why aren't any of these syndications not failing then? The buyside of this asset class is facing redemptions, likely more drop in LIBOR and historically unprecedented volatility. I just can't believe a syndicating bank would limit the ticket size of anyone interested in reducing said bank's exposure....

Posted by LeverHedge, Feb 27, 2008 5:40PM

Speaking with Citi recently about emerging market debt....and they said they would take care of my needs there, but asked if I would be interested in an appetizer of Leveraged Loans by any chance? Seriously.

Posted by guest, Feb 27, 2008 7:01PM

At $100mm per pop they aren't selling loans, that's further syndication.

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