Tenax Capital to Purchase Leveraged Loans Held by European Banks (Bloomberg News)

Date Posted: 17 September 2012

The article quotes Michael Guy, senior portfolio manager, as saying that among other products Tenax is investing in revolving credit lines, term loan A portions and so-called delayed-draw facilities, which are typically provided by banks. Tenax is looking to earn higher returns by expanding its investment scope beyond the so-called term loan B and C slices, which are tailored for non-bank lenders and are repaid in one lump sum at maturity. Credit funds rarely buy revolving loans, which often need to be funded at a 48-hour notice, Guy added. The Tenax fund has bought the revolving credit facilities at an average price of about 90% of face value.