The market is hot, with European garbage-level companies competing to reduce their loan costs.

At the beginning of this week, borrowers are flocking to the European leveraged loan market to reprice their debts, hoping to reduce their margins by taking advantage of favorable credit conditions. Companies such as Restaurant Brands Europe, nexeye eye care service provider, and Parts Holding Europe, a car parts manufacturer, are all seeking to reduce the interest rates on their Euro term loans by 25-50 basis points. Fertility chain organization Ivirma also plans to reprice its loans and add an additional 50 million euros in term loans on top of its existing debt, while MotoGP Sports is trying to further reduce the interest rates it is currently paying, which are 275 basis points above the benchmark rate.