Companies leapfrog banks in new pricing game

Margins tumble as cash-rich lenders scramble for big business

Private equity-backed companies are taking advantage of favourable market conditions to reprice existing loans and some corporates are cutting out banks and arranging their own financing.

Last month, after some tense negotiations, UK frozen food retailer Iceland Foods convinced its lenders to reprice its $1.4bn management buyout loan, effective from this month.

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