Babson Capital Management and its European arm Babson Capital Europe have postponed an IPO for a loan fund set to launch on the London Stock Exchange, according to a regulatory filing.
The Babson Capital Global Floating Rate Loan Fund was called off due to current market conditions, especially the uncertain situation in Europe, the filing said.
It said that it had been met with good investor interest, but the current economic climate made it inappropriate to proceed. It said it would reconsider launching the fund once market conditions are stabilized.
The fund has a target size of £125 million ($199 million) and offers returns between 8% and 11%. It is intended to invest mostly in secured loans in Europe and the U.S.
It also plans to invest in senior secured loans, second-lien loans and senior fixed-rate bonds.