Sponsors are increasingly turning to the term loan
B (TLB) market to refinance – or even finance
– acquisitions. But market participants have warned
that TLBs aren’t for everyone.
Fortescue Metals opened the market for Asian TLB
credits in 2012 with its $5 billion offering. Since then
interest has grown sharply.
In 2013 seven Australian, one Singapore and one
Indian company tapped the TLB market for total issuance from
Asia ex-Japan of $3.35 billion according to Dealogic. This year
volumes have dropped: only four Australian companies and one
from Hong Kong have raised $1.71 billion from the region
Bankers speaking at the Asia Securities Industry and
Financial Markets Association’s (Asifma) annual
conference last week warned that issuers must be flexible when