LevFin - All Articles

  • Managers prep flurry of new CLOs in run up to US election

    Crestline Denali Capital, LCM Asset Management, Anchorage Capital Group and HPS Investment Partners are the managers expected to price CLOs in the coming week, as the primary pipeline sees one last burst of activity before election headlines dominate.

    • 27 Oct 2020
  • Glass half empty: pubcos strike covenant waivers for private placements

    UK hospitality companies have been avid users of the US private placement market in the past, but since the coronavirus pandemic began, their businesses have been up-ended with pubs subject to curfews, social distancing and closures. Fortunately, US PP investors have largely followed bank lenders in opting for leniency, waiving covenants or switching to monitoring minimum levels of liquidity. One firm even managed to raise new debt this summer.

    • 27 Oct 2020
  • Cov-lite has gone pretty well so far

    The coronavirus pandemic has subjected the European leveraged loan market, where ‘cov-lite’ documents reign supreme, to a brutal test. The early results are positive.

    • 27 Oct 2020
  • Dealogic parent preps to strip out costly private debt as strong results cut leverage

    Ion Investment Group is preparing to combine its Dealogic and Mergermarket units under a single corporate entity, ION Analytics, and refinance the group’s expensive private debt raised last year with a cheaper, broadly syndicated loan package across dollars and euros. A strong performance over the last year should encourage investors to look past the group’s previous struggles with access to the public markets.

    • 26 Oct 2020
  • Golub prices first TALF CLO but Fed program still lacks appeal, sources say

    Golub Capital priced the first CLO to take advantage of the Term Asset Backed Securities Loan Facility last week, selling a $678m static transaction arranged by Société Générale backed by a pool of mostly middle market loans. The deal, expected to close on October 30, may pave the way for more middle market managers to tap TALF funds, but sources remain skeptical that the program will have much impact on the wider CLO space.

    • 23 Oct 2020
  • Green CSPP, digital banks and negative rates, UK finance after Brexit

    This week in Keeping Tabs: how the European Central Bank could decarbonise its corporate bond book, how digital banks would suffer if the Bank of England goes negative, and what UK financial services policy could look like after Brexit.

    • 23 Oct 2020
  • China issuers sneak into closing bond window

    A host of Chinese issuers found one of the last windows to sell bonds on Thursday ahead of the US presidential elections at the beginning of November and a public holiday in Hong Kong early next week.

    • 23 Oct 2020
  • Vedanta returns loan, redeems bond after failed delisting

    Metals and mining company Vedanta Resources has returned the full amount of a $1.75bn loan and redeemed a $1.4bn bond after its plan to delist its Indian subsidiary failed to get enough support.

    • 23 Oct 2020
  • Country Garden wraps up $1.5bn loan with 16 banks

    Chinese property developer Country Garden has closed a $1.5bn-equivalent dual currency loan, attracting seven participants during syndication.

    • 23 Oct 2020
  • Insurer to pay $338m for stake in credit manager Crescent Capital

    Canadian insurer Sun Life Financial said it has agreed to buy 51% of Crescent Capital Group for up to $338m to expand its asset management business into mezzanine debt, middle market lending, high-yield bonds and broadly syndicated loans.

    • 22 Oct 2020
  • CLOs with AMR option reach $4.4bn with latest deal from HalseyPoint

    HalseyPoint Asset Management has priced its second CLO with the applicable margin reset (AMR) feature embedded, broadening the use of the alternative method of repricing CLO securities to over $4.4bn of CLOs since 2017.

    • 22 Oct 2020
  • Cerberus challenges market to digest flood of mezz

    Cerberus Capital Management auctioned off one of the largest ever portfolios of UK mezzanine mortgage bonds on Thursday, following a deterioration in the terms available in the ABS repo market after the Covid crisis made it uneconomic to continue to hold the deeply subordinated and risky positions.

    • 22 Oct 2020
  • Permira splashes cash on Lowell rescue ahead of 2021 NPL splurge

    Permira opted to rescue its debt purchasing portfolio company Lowell from the restructuring that many thought was imminent, with the largest slug of equity support any sponsor has injected in Europe since the coronavirus pandemic began. Covid-19 has crushed cashflows for some debt purchasers, but next year should be a bumper year for NPL buying — for those firms with cash to do so, writes Owen Sanderson.

    • 22 Oct 2020
  • eBay Classifieds underlines strength of final market window

    The €2.6bn financing for Adevinta’s purchase of eBay Classifieds looks set to be a blowout success, with sharp tightening across all tranches underlining the bid for quality credits enduring limited pandemic impact. The deal’s double-B rating helps attract rating-sensitive investors who have seen their portfolios pummelled this year by Covid-related downgrades.

    • 22 Oct 2020
  • Levfin bankers optimistic as liquidity returns

    Leveraged finance bankers coping with a slump in deal flow in Asia this year are gearing up for a bumper start to 2021, as a return of liquidity and growing interest from institutional investors for loans set the stage for a market revival. Pan Yue reports.

    • 22 Oct 2020
  • Tightening spreads revive middle market CLO issuance

    The middle market CLO segment is slowly regaining momentum, with more managers coming back to the market to take advantage of tighter spreads and a clearer picture of the financial impact of coronavirus on middle market companies.

    • 21 Oct 2020
  • Loss mitigation loans make their way into euro CLOs

    A common feature of the US CLO market known as the loss mitigation loan has begun to make its way into European deals for the first time, continuing the trend of European managers borrowing features from US peers to deal with the effects of the Covid-19 crisis.

    • 21 Oct 2020
  • Permira digs deep to recap Lowell as NPL expectations build

    Permira and partners have injected £600m of equity into their debt collector portfolio company Lowell as part of a £2.2bn recapitalisation and refinancing effort for the troubled company, which saw its bonds heavily shorted and was widely expected to restructure its liabilities this year. The contribution is the largest equity injection from a sponsor in EMEA since the coronavirus pandemic began, and reflects what Lowell's management sees as a historic opportunity to buy NPL portfolios in the months ahead.

    • 21 Oct 2020
  • ReNew Power uses tried and tested structure for $325m outing

    ReNew Power, the Indian renewable energy giant, brought a $325m green bond to the market on Tuesday. It offered investors a rare opportunity to buy a high yielding deal from the country, despite using a fairly unusual structure for its transaction.

    • 21 Oct 2020
  • CSAM raises $265m fund for CLO equity investments

    Credit Suisse Asset Management has closed its first CLO equity focused fund, raising $265m from investors.

    • 20 Oct 2020
  • Cerberus launches monster mezz sale as repo terms worsen

    Cerberus Capital Management is selling one of the largest ever portfolios of UK mezzanine mortgage bonds on Thursday, following a deterioration in the terms available in the ABS repo market after the huge volatility seen in the Covid crisis. The sale comes the same week as the sale of the last tranche of mortgages by government bad bank UK Asset Resolution, which could also flood the market with mezzanine supply.

    • 20 Oct 2020
  • Aero supplier Meggitt looks to sell US private placements

    Aerospace and defence supplier Meggitt has entered the US private placement market, according to sources, on the hunt for at least $200m. Like others in the sector, Meggitt has struggled through the pandemic.

    • 20 Oct 2020
  • UBS IB benefits from leveraged capital markets, IP sale

    UBS's investment bank beat analyst consensus as capital markets revenue was up sharply year-on-year, while a sale of intellectual property rights resulted in a one-off gain, the bank showed in third quarter results on Tuesday.

    • 20 Oct 2020
  • Getlink offers green bond refi after waiving term loan covenants

    Getlink, the company that operates the Channel Tunnel, is preparing a €700m high yield green bond to refinance its 2023 bonds and raise cash for capex, including finishing off a landmark electricity connection between the UK and France. The refi comes after it negotiated waivers on the covenants in its term loan to deal with the impact of the pandemic.

    • 20 Oct 2020
  • Sembcorp bags S$100m Sora-linked loan

    More Singaporean companies are making the transition to a new local currency benchmark rate in preparation for the end of Libor, with Sembcorp Industries becoming the latest firm to raise a loan linked to Sora.

    • 20 Oct 2020
  • Pan Brothers under pressure to meet loan refi

    Indonesia’s Pan Brothers has requested Moody’s to withdraw its corporate issuer rating after a spate of downgrades this year, as the textile company struggles to put together a loan to meet some of its looming maturities.

    • 20 Oct 2020
  • Elmwood resets CLO as market slowly returns to pre-Covid formats

    Citi arranged the reset last week of a $503.9m CLO managed by Elmwood Asset Management, extending the deal with a new five year reinvestment period as CLOs slowly return to pre-Covid format.

    • 19 Oct 2020
  • Blackstone gets real estate risk through high grade market

    Blackstone Property Partners, the pan-European real estate company, got solid demand for its April 2027 bond on Monday, after last week’s tepid reaction from investors to the sector that saw a deal pulled.

    • 19 Oct 2020
  • Goldman preps rare royalty-backed bond for Delek

    Goldman Sachs is marketing a new high yield bond for Delek Energy, backed by the royalty payments to come from the Leviathan gas field off the coast of Israel. The financing is effectively super senior to a $2.25bn bond issued in the summer, and ekes out extra debt capacity, borrowing financial technology common in the US shale industry and applying it to a new, Israeli context.

    • 19 Oct 2020
  • Closing primary window prompts leveraged credit rush

    Leveraged companies or sponsors seeking financing are moving quickly to fund in the immediate aftermath of the November 3 US election. Monday morning saw more than €3bn-equivalent of new supply across high yield bonds and loans announced, across six separate issuers.

    • 19 Oct 2020
  • VPBank Finance makes quick return for $150m

    VPBank Finance Co, the consumer finance arm of Vietnam Prosperity Joint Stock Commercial Bank, has made a rapid return for a $150m loan.

    • 19 Oct 2020
  • MUFG hires levfin banker to lead capital markets

    JP Morgan's Raj Kapadia has joined MUFG as international head of capital markets, as the firm increases its leveraged finance focus. It has also set up a new group to advise clients at the C-suite level on market and macroeconomic developments, led by Tom Joyce, a hire from Deutsche Bank.

    • 16 Oct 2020
  • Indika fires up $450m bond comeback

    Indonesia coal producer Indika Energy was back in the debt market on Thursday with a $450m bond.

    • 16 Oct 2020
  • Bond bonanza in Asia as corporates go for dollars

    Asia’s dollar bond market has been swamped with new deals this week. Thursday was no different, with corporate borrowers from Greater China alone raising just over $3bn between them.

    • 16 Oct 2020
  • Inventec boosts loan to $500m

    Taiwan-based notebook computer maker Inventec has increased the size of its revolving loan to $500m after attracting 11 participants during syndication.

    • 16 Oct 2020
  • HY welcomes new packaging firm ditching PP debt

    Canpack, a Poland-based packaging company, made its debut in the euro and dollar high yield market this week, shaking off the constraints of its private placement-based capital structure and preparing for expansion in the US.

    • 15 Oct 2020
  • Yield hunters reawaken CLO chimera

    The quest for yield has reawakened the market for an unusual form of CLO that pools both leveraged loans and high yield bonds to form a hybrid product. The structure has reappeared despite volatility in credit markets caused by the coronavirus crisis, with issuance escalating recently and set to rise as more CLO managers try to take advantage of opportunities — not just in loans but also the $1.2tr high yield bond market, writes Paola Aurisicchio.

    • 15 Oct 2020
  • Doorstep lender IPF seeks easier covenants

    International Personal Finance, a UK-listed doorstep lender, asked bondholders to ease covenant limits as part of a package of measures to push out its maturities and manage the impact of the Covid-19 crisis on its funding.

    • 15 Oct 2020
  • £14bn book firms up Rolls-Royce rescue plan

    The bond piece of Rolls Royce’s £5bn Covid-19 rescue plan was a storming success this week. The issue doubled in size on the back of a combined book of £14bn, showing the firm still has excellent access to private sector liquidity — a strong message as Rolls turns to shareholders for a £2bn rights issue.

    • 15 Oct 2020
  • SMC gives investors a break from China bonds

    SMC Global Power Holdings Corp was one of the few Asian issuers outside of China to turn to the dollar market this week. The Philippine borrower attracted ample investor support, allowing it to raise more money than it had first planned.

    • 15 Oct 2020
  • Crypto firm Ripple starts XRP line of credit service

    Ripple, the US cryptocurrency company, has launched a line of credit available to some of its customers, as corporate financers say that blockchain technology will likely continue to create new services associated with traditional banking.

    • 15 Oct 2020
  • Greater China bond issuers rush to dollar market

    Four bond issuers from Greater China followed the Chinese ministry of finance into the dollar market on Wednesday, snapping up $1.4bn between them.

    • 15 Oct 2020
  • SEC spots clouds on CLO market horizon

    November’s US election and regulatory issues are major concerns for the US CLO market, together with another possible wave of defaults in leveraged loans, the SEC has said.

    • 14 Oct 2020
  • Fixed rate US CLO repricings gather pace as election threatens supply

    Tightening spreads on triple-A rated CLO tranches has prompted a wave of refinancings and resets of fixed rate tranches over the last two weeks. Market sources expect the trend to continue as CLO managers look to save on costs.

    • 14 Oct 2020
  • Buy it now: Barclays and Citi unveil eBay Classifieds loan

    Barclays and Citi have begun syndication of the loan backing Adevinta’s purchase of eBay Classifieds, one of the largest EMEA M&A deals agreed this summer. The banks are marketing €1.33bn of term loans, with a bond deal to follow shortly.

    • 14 Oct 2020
  • M&A banker Le Milon jumps to Barclays

    Barclays has hired Gauthier Le Milon as head of M&A for France, Belgium and Luxembourg.

    • 14 Oct 2020
  • Z Capital Group expands its credit team

    Z Capital Group has expanded its credit team with the addition of Egidio Carlino as director and Jordan Shrem as senior associate.

    • 13 Oct 2020
  • Putting the 'K' in capital markets

    The coronavirus crisis will continue to lead to divergence in economic fortunes, and that will play out in European capital markets as well.

    • 13 Oct 2020
  • CapVest unveils loan for Curium plan B

    Pre-pandemic, mid-market private equity firm CapVest was gearing up to sell its portfolio company Curium, in a €3bn auction which attracted interest from CVC, Bain and Nordic Capital. Covid collapsed the sale process, prompting a plan B for the asset — sell it to themselves.

    • 13 Oct 2020
  • State aid helps CMA sail through pandemic refi

    For CMA CGM, a French shipping company, the pandemic came in the nick of time. The group was struggling with debt maturities and dwindling liquidity in late 2019, but abundant state aid funding has allowed it to shore up its balance sheet return to market this week to refinance its 2021s.

    • 13 Oct 2020
  • India's JSW pays up for bond deal

    JSW Steel sold a $500m bond on Monday, but the issuer paid some 30bp of premium to close the trade.

    • 13 Oct 2020
  • Sina taps both onshore and offshore for take-private loan

    Sina Corp, a Chinese internet firm that owns social media platform Weibo, is seeking a $2.08bn borrowing from onshore and offshore borrowers. It plans to use the money to delist from the Nasdaq.

    • 13 Oct 2020
  • Hands on my property! China HY issuers tap dollars

    Three high yield Chinese property issuers turned to the offshore bond market on Monday, raising $950m between them.

    • 13 Oct 2020
  • Spreads on triple-A US CLOs grind tighter with CVC Credit deal

    Spreads on primary triple-A rated CLO paper moved tighter with the latest deal from CVC Credit Partners, priced on Friday, as managers look to get deals done in the narrow window before the US presidential election on November 3.

    • 12 Oct 2020
  • CLO managers switch strategies as mezz softens

    CLO managers took different approaches to deal with a primary market last week in which prices softened all the way down the capital structure from the tights of late September. One manager, PGIM, even opted not to issue single-B rated notes, using a delayed draw structure instead.

    • 12 Oct 2020
  • New packaging firm joins HY universe to ditch PP debt

    Canpack, a Poland-based packaging company, is making its debut in the euro and dollar high yield market this week, as it seeks to shake off the constraints of its private placement-based capital structure and prepare for expansion in the US.

    • 12 Oct 2020
  • CLOs weathering the storm but risks still loom, says SEC

    The Securities and Exchange Commission in a report published this week said the agency recognized that the CLO market has fared reasonably well through the crisis, but warned that “disruption brought on by the COVID-19 economic shock is still ongoing" and that their outlook could change.

    • 08 Oct 2020
  • Gold top: cream of direct lending biz covers up pain beneath

    Large deals and fundraising from a clutch of elite direct lenders, alongside high profile tie-ups with sovereign wealth funds, have prompted many to characterise direct lending as enjoying a golden age. But the success of some funds looks set to come at the expense of many others, writes Silas Brown.

    • 08 Oct 2020
  • Germany nears revamped restructuring rules

    Germany is set to implement a total revamp of its corporate restructuring rules from next year, with a draft bill overhauling a court-led regime more than 25 years old and replacing it with rules law firm Kirkland & Ellis called ‘best practice’.

    • 08 Oct 2020
  • Jaguar Land Rover returns after Covid-19 hiatus

    Jaguar Land Rover, whose February bond issue was one of the first casualties of the coronavirus pandemic in the capital markets, has brought its first bond issue since, strengthening bond terms with a ‘springing lien’ protecting investors against future priming debt.

    • 08 Oct 2020
  • Unrated Dürr guides market towards double-B pricing

    Dürr, the unrated German mechanical and plant engineering firm, is guiding investors on its final day of marketing towards it issuing a €250m bond with a yield aligned to issuers in the double-B ratings bracket.

    • 08 Oct 2020
  • EQT tightens pricing but concedes ticking fee on Colisée buyout

    The €875m acquisition loan for EQT Infrastructure’s purchase of French care home operator Colisée will come with a reduced original issue discount and at the tight end of guidance, but the buyout firm has conceded a ticking fee, as the deal must compete with secondary markets, which are still largely priced at a discount.

    • 08 Oct 2020
  • Indian loan market shows signs of revival, but faces challenges

    Indian borrowers are finally returning to the offshore loan market after months of little to no action. But even as a pipeline builds, bankers remain wary of challenges around execution. Pan Yue reports.

    • 08 Oct 2020
  • Agile prices $300m bond

    Chinese property company Agile Group Holdings raised $300m from its Wednesday bond sale, but found less investor support than excepted.

    • 08 Oct 2020
  • Trans-Canada invests $110m with Pretium Partners

    Trans-Canada Capital, which manages the assets of Air Canada’s pension plans, is investing $110m with Pretium Partners in search of structured and corporate credit opportunities that may emerge as a result of the market volatility in 2020.

    • 07 Oct 2020
  • Angels stop falling for autumn

    European credit markets recorded no fallen angels in September — the first month of the Covid crisis that this has occurred, according to credit strategists at Bank of America — and few corporates are now at immediate risk of a slide out of investment grade.

    • 07 Oct 2020
  • Permira plans to step up ESG approach in next Providus CLO

    Permira Debt Managers is looking at a new, enhanced ESG approach for its next Providus CLO, going beyond the negative screening seen so far in the market and committing to a minimum ESG score across the portfolio.

    • 07 Oct 2020
  • NatWest writes to thousands of corporates about Libor shift

    NatWest plans to contact around 3,500 of its corporate clients from Thursday to inform them about the end of Libor as a benchmark and what their options and next steps are, as a recent survey showed that the vast majority of companies have not made any tangible efforts towards moving debt facilities to risk-free rates.

    • 07 Oct 2020
  • Bedford Row hires criminologist as ESG lead

    Kevin Haines has joined non-bank originator Bedford Row Capital in order to establish ESG processes.

    • 07 Oct 2020
  • Sheng Ye seeks debut offshore RMB loan

    Sheng Ye Capital, a Hong Kong-listed financial services provider, has made its debut in the syndicated loan market. It is raising funds in offshore renminbi.

    • 07 Oct 2020
  • New Mountain and Sixth Street price debut CLOs

    New Mountain Capital and Sixth Street Partners took advantage of stabilised market conditions to each price their inaugural CLOs this week.

    • 06 Oct 2020
  • Fears of PP exodus as amendment round looms

    US private placement market insiders fear a round of early prepayments, as companies look to wriggle out of the straightjackets of financial covenants and issue public market bonds instead. Amendments brokered at the start of the coronavirus pandemic are up for review now, and sources think these talks will involve tough conversations between borrowers and lenders.

    • 06 Oct 2020
  • Rolls-Royce readies bond leg of rescue package

    Rolls-Royce started marketing the bond leg of a multi-product recapitalisation and refinancing package on Monday, preparing an offering of more than £1bn-equivalent across three currencies.

    • 06 Oct 2020
  • Majority of companies haven’t started Libor transition prep

    Almost two thirds of companies are still unprepared for the transition away from Libor, as lenders in London say they are in “intensive” discussions with clients about the switch to risk free rates.

    • 06 Oct 2020
  • International SOS makes loan debut

    International SOS, a Singapore-based emergency medical assistance provider, is making its debut in the syndicated loan market for $320m.

    • 06 Oct 2020
  • CLOs return to pre-Covid format, but deals slow ahead of election

    Pre-Covid CLO structures are making a gradual comeback as managers rush to market ahead of the election, with a deal from New York Life Investment Management arranged by Jefferies priced with a traditional five year reinvestment period.

    • 05 Oct 2020
  • Meet the Platform: EU green finance watchdog

    The European Union’s formation of its Platform on Sustainable Finance last week marks a new phase in responsible investing. Over the past four years or so, the most influential thinkers in the market, such as the Principles for Responsible Investing, have been quietly moving back to an older interpretation of what RI means: considering the effects of investment choices on others.

    • 05 Oct 2020
  • Churchill hires middle market CLO portfolio manager

    New York-based Churchill Asset Management, an investment specialist affiliate of Nuveen, has hired Kelli Marti as managing director and CLO portfolio manager to boost the firm’s middle-market CLO business.

    • 05 Oct 2020
  • No time to die: Cineworld mulls survival options as it shuts cinemas

    Cineworld announced on Monday it was closing all of its 536 Regal Cinemas in the US and its 127 Cineworld and Picturehouse venues in the UK from Thursday, adding urgency to the company’s search for enough liquidity to see it through the Covid-19 crisis in cinema.

    • 05 Oct 2020
  • Issa no problem: Asda buyout vaults brothers to top of levfin borrower table

    Friday’s confirmation that the Issa brothers, backed by TDR Capital, had won the auction for UK supermarket Asda, catapulted them into the super league of borrowers in European leveraged credit — the handful of entrepreneurs whose appetite for debt surpasses market appetite to lend to a single capital structure.

    • 05 Oct 2020
  • Alam Sutera hit with double downgrade

    Indonesian property company Alam Sutera’s move to kick off an exchange offer last week to stave off pressing financial concerns was met with ratings downgrades from two of the three global ratings agencies.

    • 05 Oct 2020
  • Responsible investing gains a foothold in US CLOs

    A rare environmental, social and governance (ESG) themed CLO was priced this month by Palmer Square Capital Management, setting the tone for the still-early days of ESG securitization in the US and hinting at bigger things to come for socially responsible CLOs.

    • 01 Oct 2020
  • Where are the missing CLO managers?

    As CLO spreads have rallied towards pre-Covid levels, some CLO managers have come to market with their second new issues since the pandemic first hit, taking advantage of loan prices still largely under par to ramp new issues quickly. But the new landscape is missing some of the market’s most well-known managers, and there’s a stubborn tail of pre-Covid warehouses still to shift.

    • 01 Oct 2020
  • Tannenbaum to run EMEA cap markets at BofA

    Bank of America has promoted Jeff Tannenbaum, its head of debt capital markets and leveraged finance EMEA, to head of global capital markets for the region.

    • 01 Oct 2020
  • Santander pre-places €2.2bn risk-transfer SME deal with EIB

    The European Investment Bank has taken down a €2.2bn synthetic balance sheet CLO originated by Santander CIB, executing a significant risk transfer to free up exposure to a Spanish SME portfolio.

    • 01 Oct 2020