SOFR Leveraged Loans Pick Up as Morgan Stanley, BofA Dive In

  • The banks used the blueprint recently set in JPMorgan deals
  • Gateway Casinos sold SOFR-based deal to refinance debt
Photographer: Jeenah Moon/Bloomberg
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U.S. leveraged loan sales tied to the Secured Overnight Financing Rate are picking up pace after JPMorgan Chase & Co. established a blueprint for borrowers earlier this month.

Gateway Casinos & Entertainment Ltd sold a $1.07 billion loanBloomberg Terminal Friday at a spread of 800 basis points -- or 8% -- over SOFR, in addition to a credit-spread adjustment, according to people with knowledge of the matter. It also sold a C$218.6 million loan at an 800-basis-point spread to the Canadian market’s benchmark, said the people who asked not to be identified because the details are private.