Leveraged Loans - All Articles

  • Sustainable loans give banks strange urges

    New dynamics are appearing in the sustainability-linked loan market, as the product balloons and banks prepare for more intense scrutiny of their green lending activities. The trends highlight how unformed and confusing this young market still is, writes Jon Hay.

    • 30 Jan 2020
  • Toys or weapons? The choice for sustainable loans

    Some weird genetic mutations have been appearing in the hothouse of sustainable finance, where new green products are cultivated to beautify the grandees of the capital markets.

    • 30 Jan 2020
  • Storming second lien syndication opens up sub debt options

    The idea that companies can raise subordinated debt only through private or club deals was put into deep freeze this week, when ice-cream maker Froneri fully syndicated two second lien tranches as part of its €5.7bn refinancing. Owen Sanderson reports.

    • 30 Jan 2020
  • Barclays eyes victory in Europe’s global IB race

    Jes Staley’s strategy has been vindicated, with Barclays’s corporate finance bankers having a banner year. But it has to invest in its European franchise to cement its credentials as the region’s leading investment bank, says David Rothnie.

    • 30 Jan 2020
  • Loparex refi loan to price wide as bifurcation bites

    Dutch release liner manufacturer Loparex is launching a €186m term loan B to refinance the equity bridge, put in place by sponsor Pamplona when the company acquired its competitor Infiana last autumn. While the borrowing conditions are exceptionally benign for many, Loparex has struggled to make a good first impression.

    • 30 Jan 2020
  • Anglo Pacific increases dollar revolver again

    Anglo Pacific Group, the London-listed, mining resources royalty company, has amended and extended its dollar revolving credit facility, which has now tripled in the last few years.

    • 29 Jan 2020
  • Liberty Global’s UPC launches refinancing after failed Sunrise merger

    UPC, part of Liberty Global’s European telecoms empire, is marketing dollar and euro term loan ‘B’s to pay off a $1.14bn issue of 5.375% senior secured notes. The refinancing comes only a few months after Sunrise cancelled its takeover of UPC’s Swiss business — to the disappointed of Liberty.

    • 28 Jan 2020
  • Investec plucks healthcare pair

    Jens Lindqvist and Brough Ransom have moved from N+1 Singer to Investec to cover healthcare.

    • 28 Jan 2020
  • Goldman names new leaders for mid-market and sponsors units

    Olaf Diaz-Pintado has been named head of Goldman Sachs’s cross markets group for Europe, the Middle East and Africa, while the bank has appointed new regional heads for its financial and strategic investors group.

    • 28 Jan 2020
  • Aoyuan closes $230m loan with eight banks

    China Aoyuan Group has closed a $230m-equivalent club loan with eight banks.

    • 24 Jan 2020
  • Credit Suisse rejigs IBCM after ‘tough year’

    Credit Suisse has streamlined its investment banking and capital markets operation (IBCM) and is confident that it will return to form after a chastening 2019, writes David Rothnie.

    • 23 Jan 2020
  • People moves in brief

    No more Vice at ICE — Barclays places Hill at risk — HSBC picks head of new illiquid credit syndicate unit

    • 23 Jan 2020
  • Sovereign debt at greater risk of being ‘stranded’

    The risk that huge amounts of oil and gas assets will be stranded by moves to tackle the climate emergency may be more pertinent for sovereign credit than for private sector corporate debt, according to new research.

    • 23 Jan 2020
  • EQT considers ditching credit arm as private debt turns sluggish

    Swedish PE firm EQT Partners has mandated JP Morgan to advise as it considers divesting its credit business. The strategic shift at EQT is happening as the private credit sector is getting increasingly crowded.

    • 23 Jan 2020
  • Bonds back on top as Techem changes tack

    High yield bonds are back on top as the capital markets funding tool of choice for leveraged companies. This week, Techem tweaked its loan repricing to add a heavy bond slug and take advantage of near-record low coupons on offer. That sets 2020 up with a very different tone from the past two years, when an ever-growing CLO market meant bonds struggled to compete with loans, writes Owen Sanderson.

    • 23 Jan 2020
  • PE seeks new exit as MiFID grinds public markets

    Private equity firms are looking at different ways of monetising their investments, rather than the usual IPO routes, as regulation makes smaller firms less viable in the public markets. Alternative capital providers outside the usual buyout community are also boosting their allocations to private assets.

    • 23 Jan 2020
  • Corp finance chief Wallace to leave HSBC

    HSBC is looking for a new head of corporate finance coverage to replace Matthew Wallace, who is quitting the firm. Meanwhile, Simon Derrick and Michael Ellam have been handed new jobs as the bank reorganises the way it covers investors and public sector institutions. In Asia Pacific, Rami Hayek is leaving his post.

    • 23 Jan 2020
  • Techcombank nears debut as Vietnamese borrowers eye international loan market

    Vietnam Technological and Commercial Joint Stock Bank (Techcombank) is making its second attempt to raise a syndicated loan, after pulling a deal in 2017. It is one of several Vietnamese borrowers now planning a debut in the international market, reports Pan Yue.

    • 23 Jan 2020
  • Levfin issuers have never had it so good

    Leveraged credit is firing on all cylinders. The best issuers are breaking coupon and margin records and there are bold dividend deals and major league new money LBOs.

    • 22 Jan 2020
  • BFI Finance returns for $75m loan

    BFI Finance Indonesia, which provides funding for automobiles, heavy equipment and properties, has returned to the loan market for a $75m borrowing.

    • 22 Jan 2020
  • UBS IB spends $80m on restructuring the workforce

    UBS’s investment bank spent around $80m from restructuring related to personnel at the end of last year. The Swiss bank has also said it will look into partnerships with other banks for its investment bank.

    • 21 Jan 2020
  • Banijay rolls out deal package for Peaky Blinders producer

    French TV production group Banijay launched on Tuesday a $2.373bn-equivalent financing package, consisting of secured and unsecured bonds, a term loan and a revolver, to pay for its takeover of Endemol Shine, a Disney- and Apollo-backed Dutch production company.

    • 21 Jan 2020
  • Techem adds bonds to refi package

    Techem has now added a €600m high yield bond to the planned repricing of its €2.3bn term loan B, in a sign that bonds are now the more competitive product for some issuers, especially those at the top end of the market.

    • 21 Jan 2020
  • Intu preps rescue rights issue but needs a long-term plan

    Intu, the British real estate and investment trust focused on shopping centres, has confirmed it will be tapping its shareholders for equity capital in February, but sources say the company needs to outline its vision for its future, given the headwinds buffeting the UK retail sector.

    • 21 Jan 2020
  • Techcombank readies new $300m loan

    Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has mandated five banks for a $300m loan.

    • 21 Jan 2020
  • Trans Retail, Sritex mandate banks for loan return

    Trans Retail Indonesia, previously known as Carrefour Indonesia, and textile firm Sri Rejeki Isman (Sritex) have both mandated banks for new loans.

    • 21 Jan 2020
  • Kawohl heads to HIG for distressed debt

    Bayside Capital, the branch of private equity firm HIG Capital that invests in special situations and distressed debt, has appointed Florian Kawohl as a managing director.

    • 20 Jan 2020
  • Cobham take-private debt starts syndication

    Loans backing Advent’s takeover of UK defence contractor Cobham, which received government approval over Christmas, have started general syndication, bringing welcome new money loans with a margin on the right side of 400bp.

    • 20 Jan 2020
  • Alvarez & Marsal expands into debt advisory

    Tim Metzgen is leading a new European debt advisory franchise at Alvarez & Marsal.

    • 20 Jan 2020
  • HSBC names head for illiquid credit syndicate unit

    HSBC has appointed Vinay Raj as head of illiquid credit syndicate, a new structure within the firm's global syndicate operations focused on distributing structured finance, infrastructure, real estate and distressed debt.

    • 20 Jan 2020
  • Nomura hires Acaia to cover consumer and retail sectors

    Marco Acaia has joined Nomura as a managing director in the consumer and retail coverage team.

    • 20 Jan 2020
  • The power of making a fuss

    As head of BlackRock, the largest asset manager, Larry Fink’s pivot to responsible investing in recent years has been influential.

    • 16 Jan 2020
  • BNPP and Deutsche prep secondary buyout loan for Armacell

    BNP Paribas and Deutsche Bank are marketing a €710m term loan 'B' to fund the secondary buyout of Armacell by PAI Partners, announced just before Christmas. This will be the insulation company’s fifth LBO, so it is well known to lenders, who ought to support the new deal despite a downgrade last year.

    • 16 Jan 2020
  • Loan repricing accelerates but can CLOs keep up?

    Some of the largest issuers in the leveraged finance universe are repricing their loans, cutting 50bp or more from their margins on the back of strong market conditions and proven performance since the loans were raised. That is putting pressure on CLO managers and equity holders, whose liabilities are tightening too, but more slowly, blocking repricing of the bonds and squeezing returns, write Owen Sanderson and Tom Brown.

    • 16 Jan 2020
  • Palmieri shakes up corp finance at SG

    Société Générale has redoubled its commitment to equity capital markets under a new structure designed to ensure it remains a force in investment banking when consolidation comes, writes David Rothnie.

    • 16 Jan 2020
  • Pan Brothers ready to navigate Duniatex woes for new loan

    Indonesian apparel supplier Pan Brothers is in talks with banks for a new dollar loan, as it prepares to return to the market for the first time since 2018. However, syndication may be a challenge, as lenders are still reeling from the default of a subsidiary of textile firm Duniatex last year, writes Pan Yue.

    • 16 Jan 2020
  • Nouryon, Fluidra continue repricing trend in leveraged loans

    Dutch chemicals giant Nouryon is attempting an elephantine repricing of a €5.6bn loan. Nouryon is following Spanish Fluidra, a pool manufacturer, which announced a €300m repricing on Tuesday, and UK-based data company Refinitiv, which set a more favourable price for its €2.33bn loan last week.

    • 15 Jan 2020
  • Corporate primary faces test in secondary spread behaviour

    European corporate bond specialists are keeping an eagle-like watch on how well new issues trade in the immediate aftermarket. Any widening could kick off a trend towards higher new issue premiums.

    • 15 Jan 2020
  • India’s Birla Carbon, Tata Steel tap banks for loans

    Indian companies Birla Carbon and Tata Steel have mandated banks for loans and both borrowers have signed up large groups of lenders at the top level.

    • 15 Jan 2020
  • Röhm buyout loan returns to syndication

    Advent’s buyout of German chemicals company’s Evonik’s acrylic unit last year is still haunting the leveraged loan market. The banks are relaunching syndication of €977m and $612m of term loan Bs, hoping that investors will find the credit more attractive this time around than when it was first syndicated.

    • 14 Jan 2020
  • Wafer-thin margins for giant Froneri financing

    Froneri, a PAI Partners-backed ice cream company, is syndicating the financing for its acquisition of Nestlé’s US ice cream business, raising €5.7bn-equivalent of first and second lien debt across three currencies.

    • 14 Jan 2020
  • New World China breaks five-year loan hiatus

    New World China Land, the mainland China property business arm of Hong Kong’s New World Development Co, has returned to the offshore loan market after five years for a HK$5bn ($643m) borrowing.

    • 14 Jan 2020
  • ENN Ecological makes debut with $200m loan

    Chinese liquefied natural gas supplier ENN Ecological Holdings Co has made its debut in the offshore loan market through Standard Chartered.

    • 13 Jan 2020
  • Sustainability loans need rating agencies

    The sustainability-linked loan market is a glorious mess.

    • 10 Jan 2020
  • LMA to guide banks on how to avoid greenwashing in sustainable loans

    The loan market’s trade bodies are preparing to give new guidance about how to ensure sustainability-linked loans — in which borrowers can get a margin reduction if they hit sustainability targets — are genuinely “ambitious”. Bankers want to protect the market from rising concerns that some deals’ terms are too easy on the borrowers.

    • 09 Jan 2020
  • RBC looks to profit amid European blues

    RBC Capital Markets is beefing up financial sponsors, aiming to boost its European business during 2020, writes David Rothnie.

    • 09 Jan 2020
  • NatWest Markets joins leveraged loan swap market

    NatWest Markets has started to offer currency swaps on leveraged loans, with its first ‘perfect asset swap’ traded in December. It joins just two other banks regularly offering the product, which is crucial for connecting the sterling leveraged finance market to the deep demand created by euro-based CLO buyers.

    • 09 Jan 2020
  • Barclays takes Oaktree distressed specialist

    Xavier Clement has joined Barclays’ European credit trading business, working under another former Bank of America Merrill Lynch banker.

    • 09 Jan 2020
  • RBC poaches from HSBC for levfin

    RBC Capital Markets has continued the development of its leveraged finance business by hiring Craig Campbell from HSBC.

    • 08 Jan 2020
  • Duration to be tested as high grade corps kick off

    Corporate bond investors in Europe are strapping in for a busy few weeks, though some have redoubled their call for issuers to offer shorter maturity debt.

    • 08 Jan 2020
  • Axis sells down full $100m loan hold of Syndicate Bank

    India’s Syndicate Bank has closed its $100m borrowing, with the lead bank selling the entire amount to three participants.

    • 08 Jan 2020
  • Strong start for leveraged market with mandate rush

    New leveraged loan supply has started strong, despite geopolitical jitters leading to softness in the public markets, and it’s not just play-it-safe refi issues. Cision is marketing dual-currency acquisition debt for Platinum Equity’s takeover of the public relations technology firm, while Global University Systems is prepping a deal of nearly €1bn to fund a dividend. Also in the loan market are Ortho-Clinical Diagnostics and Refinitiv’s euro repricing, while Stena and Ashland have mandated potential bond deals.

    • 07 Jan 2020
  • Premier Oil prepares $500m capital increase

    Premier Oil has become the first company to announce a major ECM transaction in 2020, a £385m ($500m) capital increase to repay debt and finance the acquisition of two UK North Sea oilfields from BP.

    • 07 Jan 2020
  • Mittelhamm switches from Barclays to HSBC for M&A

    HSBC Germany has hired Heiko Mittelhamm as head of M&A for Germany and Austria.

    • 07 Jan 2020
  • Refinitiv plans to cut euro loan pricing

    Refinitiv is repricing its €2.33bn term loan 'B', after Bank of America held a lender call on Tuesday to approve the deal. The financial data company is set to be purchased by the London Stock Exchange Group later this year, but is looking to cut the costs of the debt it took on for its 2018 takeover by Blackstone, GIC and CPPIB. A repricing of its $6.5bn term loan before Christmas shaved 50bp off the margin.

    • 07 Jan 2020
  • Stena preps term loan 'B' refi

    Swedish shipping and real estate conglomerate Stena AB is looking to refinance its existing term loan ‘B’, with a combination of loans and bonds in dollars and euros, depending on which pockets of demand prove the most fruitful. It meets investors in the US this week and in Stockholm, Oslo and London next week, with JP Morgan arranging the effort.

    • 07 Jan 2020
  • Indorent closes $175m loan with 13 banks

    Indonesian automobile company CSM Corporatama, also known as Indorent, has wrapped up its syndicated loan at a bigger size of $175m.

    • 07 Jan 2020
  • Respectable loan volume in 2019 as M&A buoys US market

    Global syndicated lending fell back in 2019 to a level similar to that in 2013-2016, in dollar terms, after two years of higher borrowing including a near-record total in 2018. The volume was the sixth highest ever, and higher than that in any year before 2006.

    • 03 Jan 2020
  • Crédit Agricole’s Loynes takes up new syndicate role

    Damien Loynes has been appointed head of syndicate for Europe, the Middle East and Africa at Crédit Agricole.

    • 03 Jan 2020
  • Vingroup attracts 14 banks to $525m loan

    Vietnamese conglomerate Vingroup Joint Stock Co and its automobile subsidiary VinFast have exercised part of a greenshoe option on their joint borrowing, boosting the loan size to $525m.

    • 03 Jan 2020
  • VPBank Finance boosts borrowing to $200m

    VPBank Finance Company, the consumer finance arm of Vietnam Prosperity Joint Stock Commercial Bank, has increased the size of its loan to $200m after seven banks joined during general syndication

    • 02 Jan 2020