In the recent past, the debt markets have proven to be volatile. An increase in leveraged mergers and acquisitions, such as the proposed acquisitions of Dell Inc. (Nasdaq: DELL) and H.J. Heinz Co. (NYSE: HNZ), and/or a general decrease in investor demand may have already caused refinancing and repricing transactions to become more difficult to execute or less attractive to borrowers.
That being said, loan repricing transactions continue to get done in the current market, and the market's receptiveness to these kinds of transactions could lead to an increase in borrower-friendly repricings. Windows in the syndicated loan market can open and close quickly. Therefore, it is important that borrowers have the ability to act quickly. Borrowers should review their existing credit agreements to evaluate their cost of capital, loan maturities and other operational flexibilities.