At first glance this phrase seems to be somewhat redundant, but I guess it has come to be a synonym for high yield debt. Is this a correct interpretation? Or are leveraged loans strictly LBO paper?
Leveraged Loans = HY Loans from what I know.
lev loans are loans to highly leveraged companies. HY debt typically refers to HY bonds although can be extended to the entire HY universe (both lev loans and junk bonds). lev loans do not have to be LBO paper, it just means it is a loan to a company with significant amount of leverage (LBO related or otherwise). rating will be sub-investment grade (BB/Ba1 or lower), 3.5x or more levered, and will be priced somewhere between L+200 to L+700 depending on 1st or 2nd lien etc and environment. most of them are term loan B’s with 1% ammo / year.
thanks bb, very helpful
Go here… http://www.lcdcomps.com/ On the left side on the screen you will see a .pdf loan guide.