LevFin - All Articles

  • Shandong Iron and Steel shows strength with new bond

    Shandong Iron and Steel Group Co raked in $500m this week, as investors welcomed the long-term prospects of the Chinese company.

    • 23 Jul 2021
  • CPFI grows $400m loan

    Thai agri-business firm Charoen Pokphand Foods’ subsidiary, CPF Investments, is in the market for a new $400m loan.

    • 23 Jul 2021
  • Credit Suisse promotes Cronin to global co-head of CLOs

    Credit Suisse has promoted London-based Arun Cronin to be global co-head of CLOs, alongside New York-based co-head Brad Larson, according to people familiar with the matter.

    • 22 Jul 2021
  • Park Avenue returns to the market with first CLO

    Park Avenue Institutional Advisers, a subsidiary of the Guardian Life Insurance Company of America, has returned to the market with its first CLO of the year. It is the latest in what has been a record number of issuers in the market in a single year and there is no sign of any let-up in activity.

    • 22 Jul 2021
  • McLaren pulls in pricing for HY deal after investor stampede

    McLaren, the sports car manufacturer, closed its $620m five year deal with a 7.5% coupon on Thursday after investors piled into the order book.

    • 22 Jul 2021
  • Largest Schuldschein lenders suffer most amid supply drop

    Larger Asian and European commercial bank lenders are being scaled back by as much as 90% in certain Schuldscheine, as sluggish deal flow prompts arranging banks to make tough decisions.

    • 22 Jul 2021
  • Greater China borrowers bring in dollars

    Borrowers from Greater China rolled out five new bonds on Wednesday to raise more than $2bn between them.

    • 22 Jul 2021
  • CarVal and Gryphon create $1bn multifamily bridge loan venture

    Non-bank lenders are taking advantage of cash-squeezed properties scrambling for finance with CarVal Investors and Gryphon Real Estate Capital Partners forming a $1bn joint venture to originate multifamily senior bridge loans.

    • 21 Jul 2021
  • Ithaca Energy looks for HY refi, to repay loan to struggling Delek

    Oil and gas company Ithaca Energy has launched a five year senior unsecured bond, looking to refinance its 2024 notes and repay part of a shareholder loan from its Israeli parent Delek.

    • 21 Jul 2021
  • Bridgepoint surges in trading after popular IPO

    Bridgepoint Group, the UK private equity firm, has seen its stock rocket on its first day after pricing a £907m IPO on the London Stock Exchange.

    • 21 Jul 2021
  • Mirae adds to Vietnam loan momentum

    The Vietnam consumer finance subsidiary of Korea’s Mirae Asset Financial Group has become the latest firm to join a flurry of Vietnamese financial institutions in the loan market.

    • 21 Jul 2021
  • Sound Point joins CLO repricing wave

    CLO issuers are flooding the market with repricings of old deals to lower their cost of financing. Sound Point Capital is the latest manager to have partially refinanced a 2019 CLO, slashing the spread on the senior notes by 29bp.

    • 20 Jul 2021
  • ‘Freedom Day’ could be death knell for UK’s battered corporates

    Far from heralding the dawn of a new post-pandemic paradise, England’s removal of almost all social restrictions this week could easily lead to a sharp rise in corporate defaults.

    • 20 Jul 2021
  • The distressed debt boom that wasn't

    At the start of the pandemic, it made total sense for investors to pile capital into distressed debt funds. More than a year on, the decision looks like less of a slam dunk.

    • 20 Jul 2021
  • Casino pushes loans out as outlook improves, gets SLL

    French supermarket chain Casino has extended a €1.8bn syndicated loan to July 2026, as it tries to keep on track with its deleveraging road to recovery. Its subsidiary Monoprix has also obtained the group’s first sustainability-linked loan.

    • 20 Jul 2021
  • Car steers new loan amid Didi, Luckin headwinds

    Car Inc is seeking a new loan after an absence of five years from the market, but it will have to navigate the fallout from Luckin Coffee’s past governance concerns and the latest crackdown by China on technology companies to get its deal across the finish line. Pan Yue reports.

    • 20 Jul 2021
  • Chongqing Pharma debuts with $150m

    Chongqing Pharmaceutical (Group) Co is making its debut in the loan market for $150m. It is set to directly compete against a larger Chinese state-owned peer that is also testing lenders’ appetite for a new fundraising.

    • 20 Jul 2021
  • Evergrande’s bonds, stocks drop on domestic loan dispute

    The bonds and shares of China Evergrande Group and its subsidiaries continued to slide on Tuesday, after revelations of a dispute with a domestic lender triggered a widespread sell-off at the start of the week.

    • 20 Jul 2021
  • Anton Oil raises $150m for liability management efforts

    Anton Oilfield Services Group sold a $150m bond this week in an effort to tackle its debt maturity profile.

    • 20 Jul 2021
  • Chinese property companies push sustainability market further

    Three Chinese real estate developers sold green and sustainable bonds on Monday, adding further momentum to the booming asset class.

    • 20 Jul 2021
  • European CLOs begin to tier as investor base decreases

    Investors in triple-A rated European CLOs are using their pricing power to discern between trades, causing some deals to be priced more tightly than the recent trend of spreads widening towards 100bp, while other paper has had to offer spreads even cheaper than this.

    • 19 Jul 2021
  • Redding Ridge hires Alcentra PM

    Apollo subsidiary Redding Ridge has hired Tom Frangione from Alcentra as it grows its assets under management and the number of CLOs it runs.

    • 19 Jul 2021
  • Pemberton targets wealth managers for private credit growth

    European direct lender Pemberton is making a push to sign up wealth and asset managers in a bid to grow the private credit market's investor base.

    • 19 Jul 2021
  • CS picks six green bankers including net zero and biodiversity leads

    Credit Suisse has filled six roles in its sustainability strategy, advisory and finance (SSAF) group, headed by Marisa Drew, including a global head of net zero strategy.

    • 19 Jul 2021
  • ‘Oversubscribed’ Bridgepoint to finish at top

    The IPO of Bridgepoint Group was set on Monday to be priced at the top of its range — a boon for Europe’s equity capital markets ahead of an expected dip in activity over the summer.

    • 19 Jul 2021
  • Déjà vu

    A huge Japanese financial holding company is buying a stake in a US investment bank. Where have we seen that before?

    • 16 Jul 2021
  • Greater China property borrowers rush market

    Five real estate companies from Greater China made their way into the dollar bond market on Thursday, appealing to investors with short tenors and juicy new issue premiums.

    • 16 Jul 2021
  • SMBC strikes levfin alliance with Jefferies

    Japan’s Sumitomo Mitsui Financial Group has formed an alliance with Jefferies and is providing the US investment bank with capital to pursue its ambitions in leveraged finance.

    • 15 Jul 2021
  • Green Bond Standard will allow Taxonomy compliance to be gradual

    Market participants are getting to grips with the EU’s plans for its Green Bond Standard, released last week. They are finding quirks in it that could help some issuers, discovers Jon Hay, but may make the regulation much more complicated.

    • 15 Jul 2021
  • Liquidity surge drives middle-market CLO boom

    A flood of capital into certain corporate borrowers and a greater number of investors hunting for yield is fuelling a rise in middle-market CLO issuance, with the sector set to expand this year and take up a bigger portion of overall US CLO volume. Investors and managers more used to broadly syndicated loan deals are turning to the sector but a lack of transparency and the private nature of the underlying borrowers remain hurdles to its growth.

    • 15 Jul 2021
  • LPs: mind the information gap

    Limited partners in private credit take a hands-off approach when investing in direct lending funds. But they need to pay attention.

    • 15 Jul 2021
  • Concerns fly about leverage covenants in direct lending market

    Direct lending funds are known for protecting their investments with leverage covenants, but the investors in these funds — known as limited partners (LPs) — may be overestimating how much protection they give, market sources warned this week. Silas Brown reports.

    • 15 Jul 2021
  • IPO market set for September pile-up after chaotic second quarter

    Equity investors may finally, after months of being deluged with new listings, be about to get a break in August from the relentless deal activity that has defined the year. But they will come back in September to a market so busy that bankers believe bringing a deal then will be impossible for any companies that have not already committed to doing so, writes Sam Kerr.

    • 15 Jul 2021
  • Investor fears rattle Asia’s bond market with premiums in big demand

    The recent volatility in Asia’s dollar bond market caught up with borrowers this week, as investors began to demand more premium for new deals. While issuers may have to pay up to raise funding in the near term, some bankers think a rally is imminent. Morgan Davis reports.

    • 15 Jul 2021
  • Capital Four's US team adds three in CLOs and high yield

    Danish credit investor Capital Four has made three additions to its CLO and high yield business in the US.

    • 14 Jul 2021
  • A&O enhances levfin practice with new hire

    Allen & Overy has plucked a lawyer from Latham & Watkins as a partner in its leveraged finance team in London.

    • 14 Jul 2021
  • Public Power Corp sells second set of ESG-linked notes

    Greece’s Public Power Corp priced €500m of sustainability-linked high yield bonds on Wednesday to repay bank debt, after becoming the first HY borrower to use this structure in March.

    • 14 Jul 2021
  • Bridgepoint IPO speeds out of the gates

    Bridgepoint Group, the UK private equity firm, has officially opened books on its London IPO. It has had a strong start, receiving huge demand from investors during the investor education process.

    • 14 Jul 2021
  • Property borrowers tap dollar bonds

    Three real estate developers from Greater China raised additional funding from the dollar bond market through opportunistic trades on Tuesday, taking some comfort from the Chinese central bank’s recent move to boost renminbi liquidity.

    • 14 Jul 2021
  • VietinBank woos banks to $790m loan

    State-owned Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) is in the market for a $790m loan, its largest offshore facility yet.

    • 14 Jul 2021
  • Mizuho hires CLO specialist from BMO

    Japanese bank Mizuho has hired CLO specialist Nate Weber from Bank of Montreal Capital Markets as a managing director in its asset backed trading department.

    • 13 Jul 2021
  • Pacific Asset Management prices first CLO in 18 months

    Pacific Asset Management has returned to the CLO market, pricing its first new issue of 2021 after 18 months away.

    • 13 Jul 2021
  • Tikehau impact fund to pressure high yield market to go green

    High yield bond investors have been slower to embrace sustainable finance than other areas of the capital markets but the tide could be turning. Asset manager Tikehau has launched a new impact credit fund, focusing on leveraged finance in a bid to push the market towards sustainability.

    • 13 Jul 2021
  • Bridgepoint IPO proving popular in early marketing

    Bridgepoint Group, the UK private equity group, is garnering strong interest for its IPO on the London Stock Exchange. Sources close to the deal said that it coming so late in what has been a tricky summer deal window surprised some but that investors have warmed quickly to it.

    • 13 Jul 2021
  • Investec pushes further into levfin with hires from ABN Amro, Deloitte

    Investec has hired two new staffers to its growth and leveraged finance team, after launching an inaugural direct lending fund at the start of 2021.

    • 13 Jul 2021
  • Blackstone prepares India’s largest LBO loan for Mphasis acquisition

    Private equity firm Blackstone is raising $1.1bn to support its purchase of a stake in Indian IT company Mphasis. The deal is set to be the largest leveraged buyout loan in the country — and comes with a group of 13 bookrunners at the top. Pan Yue reports.

    • 13 Jul 2021
  • Sancus boss on moving from buyer to manager in a booming CLO market

    So far, despite the constant market chatter, consolidation among CLO managers has yet to occur. Instead, new firms are popping up as buyer demand rises in the hunt for yield. That has included Sancus Capital Management, which arranged its first deal recently having spent eight years as an investor in CLO equity and mezzanine paper.

    • 12 Jul 2021
  • High yield shows little sign of relenting – yet

    Deals keep coming in leveraged finance, as conditions remain ripe for refinancing and funding acquisitions. Though there are signs of investor fatigue around the edges, bankers do not expect much of a slowdown until August.

    • 12 Jul 2021
  • European IPO pipeline retains tech focus as Covid variants spread

    European IPO bankers have renewed their focus on bringing growth-orientated technology companies to market in the autumn, rather than cyclical firms, as fears over the continuing spread of Covid-19 leading to a fresh wave of lockdowns at the end of the year persist.

    • 12 Jul 2021
  • CLO reset spreads widen after volume boom

    Spreads on triple-A rated CLO resets in euros are widening after heavy supply in the first half of 2021, with senior spreads on new issue CLOs hovering in the mid-90bp area.

    • 12 Jul 2021
  • Green ECM momentum builds with GreenVolt IPO

    The renaissance of renewable energy companies in the equity capital markets grew on Monday with the IPO of GreenVolt, the Portuguese biomass energy company, which is set to wrap up its listing on the Lisbon stock exchange.

    • 12 Jul 2021
  • Chint Solar beams debut $150m green loan

    Chint Solar, a Chinese photovoltaic module supplier, is making its debut in the offshore market for a dual currency green loan.

    • 09 Jul 2021
  • Shanghai Pharma cuts pricing on $500m refi

    Shanghai Pharmaceuticals Holding Co has managed to slice the margin and fees on a $500m comeback to the loan market.

    • 09 Jul 2021
  • True metamorphosis of finance is now imaginable

    Is finance about to break out of the cocoon in which it has pupated for decades, and become a completely different life form?

    • 08 Jul 2021
  • EC sustainable finance Strategy: big on ideas, short on action

    The European Commission signalled this week that it would extend regulation into many more aspects of sustainable finance, driving an agenda that could change the role of capital markets in society. But although responsible investing experts welcomed it, the complex package of at least 30 measures is likely to provoke a wide variety of reactions, from enthusiastic support to complaints that it is too slow and unambitious, to outright opposition. Jon Hay reports.

    • 08 Jul 2021
  • Morrisons bid sparks M&A trolley dash

    With private equity-backed mergers and acquisitions hitting record levels in Europe, bankers have their tails up as they jostle for the most lucrative fee opportunities, writes David Rothnie.

    • 08 Jul 2021
  • Jaguar Land Rover set to sell dollar, euro high yield bonds

    Luxury carmaker Jaguar Land Rover launched euro and dollar bonds on Thursday, as it attempts to navigate its way out of the coronavirus pandemic and a global chip shortage.

    • 08 Jul 2021
  • Orchard snags CLO portfolio manager from Deutsche Bank

    Orchard Global Asset Management has hired Rachit Prasad as a portfolio manager for its CLO team. Prasad will join after an 11 year stint as an ABS research analyst at Deutsche Bank.

    • 08 Jul 2021
  • Tighter spreads open doors to more CLO refis and resets

    More managers are taking advantages of tighter spreads to refinance or reset older CLOs. Carlyle and KKR have lowered the liability costs of deals issued, respectively, in 2017 and 2019. As the cashflow distributions in July begin, the market will receive another infusion of deals as some CLOs, based on their indentures, are callable on their payment dates.

    • 07 Jul 2021
  • Lufthansa sells high yield bonds as it navigates recovery

    German airline Deutsche Lufthansa sold €1bn of three and eight year senior unsecured bonds on Wednesday.

    • 07 Jul 2021
  • High oversubscriptions show SSD lenders’ desperation for assets

    Several Schuldschein issuers have more than tripled their initial targets for deals, with arrangers saying many have gone subject just days after launch. The deal outcomes show a chronic supply and demand imbalance, as the market comes to terms with a persistent drop in deal flow.

    • 07 Jul 2021
  • Oriental Petrochemical sounds out market for new loan

    Oriental Petrochemical (Taiwan) Co, a subsidiary of conglomerate Far Eastern Group, is planning a return to the loan market for a dual currency borrowing that will include a dollar portion for the first time.

    • 07 Jul 2021
  • EU sustainable finance rules: clarity and muddle

    The European Commission launched on Tuesday a second big wave of regulation that will soon be controlling more aspects of sustainable finance more tightly. There is a tendency to think anything with the word “sustainable” attached to it is good. But capital markets specialists must ask themselves: will the regulations be helpful?

    • 06 Jul 2021
  • Medalist takes full control of CLO manager ahead of first ESG CLO

    Medalist Partners has accelerated the purchase of the remainder of CLO platform Medalist Corporate Finance, formerly known JMP Credit Advisors, given investors' hunger for the product. The firm is set to launch its first ESG CLO in October.

    • 06 Jul 2021
  • PizzaExpress returns to high yield after major restructuring

    PizzaExpress is looking to raise sterling bonds to refinance its capital structure, after bondholders took control of it last year from Chinese private equity group Hony Capital.

    • 06 Jul 2021
  • Bridgepoint starts education for £300m London flotation

    UK private equity group Bridgepoint has confirmed its intention to float on the London Stock Exchange.

    • 06 Jul 2021
  • Tata Steel drills for fresh funds

    Indian company Tata Steel has returned to the loan market. It is in talks with banks for a £200m ($276m) financing to support its UK business.

    • 06 Jul 2021
  • IG names return in force, but Asia's HY market stays quiet on volatility

    Asia's investment grade bond market is off to a busy start for the week, while pressure on the high yield sector continues to keep borrowers at bay.

    • 06 Jul 2021
  • Small syndicates for Morrisons bids open possibility for rival offers

    Only HSBC and RBC Capital Markets are underwriting Fortress’s £9.5bn bid to take UK supermarket chain Morrisons private, while only Morgan Stanley is advising Apollo on its potential rival bid. This leaves plenty of scope for other banks to team up with sponsors to make rival offers.

    • 05 Jul 2021
  • CLO warehouse mania paves way for record issuance

    Positive momentum on liability spreads and attractive equity arbitrage are driving a boom in new CLO warehouse formation, with banks competing to offer better conditions. With perhaps 200 facilities active, the blistering pace of CLO formation is set to continue later in the year.

    • 01 Jul 2021
  • SoftBank makes rare bond showing with $7bn-plus eight trancher

    SoftBank returned to euro and dollar bond markets after a three year absence to issue an eight tranche deal, raising more than $7bn-equivalent from total demand of more than $16bn, and hitting every empty spot in its funding curve at once.

    • 01 Jul 2021
  • EU eyes SLB label in big expansion of sustainable finance rules

    The European Commission is on the verge of launching its new sustainable finance strategy — the first major fresh initiative since the Sustainable Finance Action Plan of 2018. GlobalCapital has seen a leaked draft, which reveals that the EU will explore whether to create official labels for transition bonds and sustainability-linked bonds, whether to regulate green mortgages, and how to reinforce investors’ responsibility for the effects of their investments.

    • 01 Jul 2021