Leveraged Loans - All Articles

  • The end of the road for roadshows

    The shock of the Covid-19 coronavirus outbreak has forced some rapid thinking among capital markets participants. Almost the first impact has been on travel.

    • 27 Feb 2020
  • Shenwan makes HK$3bn loan debut through SPDB

    Chinese brokerage Shenwan Hongyuan Securities is out for a one-year bridge loan, seeking HK$3bn ($385m) for its international loan market debut.

    • 27 Feb 2020
  • Trip.com makes quick loan return amid travel woes

    Chinese travel services provider Trip.com Group is seeking a $1.2bn loan at a time when markets are reeling from the rapid spread of the coronavirus outside the mainland and companies are assessing the impact of the epidemic on their businesses. Despite difficult market conditions, the borrower has received plenty of interest for the deal. Pan Yue reports.

    • 27 Feb 2020
  • Levfin remains active as red days mount up

    Conditions are changing so fast with the coronavirus epidemic that each day could bring a change in sentiment, but for the time being leveraged finance is staying calm and continuing to function. There is more activity in this high risk corner of Europe’s capital markets than in any other, apart from sovereign, supranational and agency bonds.

    • 26 Feb 2020
  • VPBank Finance plans dollar loan return

    VPBank Finance Company, the consumer finance arm of Vietnam Prosperity Joint Stock Commercial Bank, is in talks with banks for a new loan.

    • 26 Feb 2020
  • Tech boutique offers tool to spot greenwash

    Investors who have been longing for the EU Taxonomy of Sustainable Economic Activities to tell them what is green are now realising that its arrival could make life tricky. From the end of next year, they will have to start reporting how sustainable all their portfolios are. It could prove an enormous headache. But a tiny company has developed a tool it claims can cut out a lot of the worries investors face in working out how to comply.

    • 26 Feb 2020
  • High yield pros hold their nerve as indicators worsen

    High yield and leveraged loan spreads have widened in the last few days, as news of the coronavirus outbreak has worsened. But neither that, nor new figures from Moody's showing downgrades outnumbering upgrades, is putting off investors long used to hanging on through gritty conditions. Chemical producer Inovyn managed to complete a €1.064bn loan amend-and-extend on Tuesday.

    • 25 Feb 2020
  • Park Hotel raises debut green loan

    Singapore’s Park Hotel Group has sealed its maiden green loan, raising S$237m ($169m) from United Overseas Bank.

    • 25 Feb 2020
  • Trip.com seeks $1.2bn loan amid travel woes

    Chinese travel services provider Trip.com Group has picked Standard Chartered as the mandated lead arranger and bookrunner for a $1.2bn refinancing deal.

    • 24 Feb 2020
  • Swissport shaves 25bp despite virus fears for air travel

    Swissport, the airport services company owned by HNA Group of China, successfully shaved 25bp off the cost of its term loan B in its recent repricing, in spite of a backdrop of increased fears about the coronavirus and its impact on the aviation industry. However, the deal was less of a slam dunk than other recent refinancings.

    • 21 Feb 2020
  • Boels offers rare covenanted loan to fund Cramo takeover

    Dutch equipment rental company Boels has launched a €1.61bn term loan B to finance the acquisition of Cramo, a Finnish rival. It is a rare chance for lenders to access a leveraged deal with maintenance covenants, a concession sponsors will no longer give but which some companies can still tolerate — though the huge headroom in this case means they are a minimal restriction.

    • 21 Feb 2020
  • Bankers fret over LBO pipeline as auctions dwindle

    After a furious start to the year, leveraged finance bankers are now worrying about what’s next for new money leveraged buyouts, with few corporate carve-outs on the horizon and a plethora of political pain points to keep sponsors on the sidelines. Owen Sanderson reports.

    • 20 Feb 2020
  • Micro Focus seeks to refi 2021 term loan

    London-listed tech firm Micro Focus is refinancing and extending its term loan 'B' and revolver, with a $1.435bn-equivalent deal across dollars and euros. The company has had a grim year — reflected in the targeted loan margins — with a series of revenue warnings, a sliding share price and subsequent exit from the FTSE100, a failed sale of part of the business, and the departure of its long-serving executive chairman.

    • 19 Feb 2020
  • Powerlong seeks refi loan through ICBC Macau

    China’s Powerlong Real Estate Holdings is returning to the international loan market to refinance some of its debt, mandating one bank to lead the deal.

    • 19 Feb 2020
  • Techcombank kicks off second loan attempt

    Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has launched a $300m deal into general syndication, marking its second attempt at tapping the loan market.

    • 19 Feb 2020
  • JP Morgan appoints new heads of IB, DCM, ECM, M&A

    JP Morgan has promoted a whole new layer of leadership in its investment bank, reaching down to debt capital markets, equity capital markets and M&A. At the top of the tree, Carlos Hernandez has moved from being head of global investment banking to executive chair and has appointed new co-heads of global investment banking.

    • 18 Feb 2020
  • Genesis Care buyout offers loan buyers rare juice and a Chinese shareholder

    Australian healthcare business Genesis Care is borrowing A$1.4bn-equivalent to fund the buyout of 21st Century Oncology’s US business, giving loan investors a rare chance to put money to work at a spread north of 400bp.

    • 18 Feb 2020
  • China Datang makes offshore loan debut

    China Datang Corp, a power generation company, is making its debut in the offshore loan market, seeking HK$5bn ($643m).

    • 18 Feb 2020
  • Trans Retail loan: right call on staggered fees

    Trans Retail Indonesia has caused a stir by deciding to structure its new syndicated loan with a relatively rare two-stage participation fee payment. Although not all banks will be wholeheartedly on board, the borrower’s move is savvy under the circumstances.

    • 18 Feb 2020
  • PVC maker Inovyn plans tweaks to TLB

    Inovyn, an Ineos entity, is marketing an increase, extension and alteration to €1.064bn of term loans, pushing out maturities from 2025 to 2027 and adding another €250m to its debt stack. But the Ba3/BB- rated borrower is not seeking any margin cut. The 200bp spread is already at the effective floor for European leveraged loans.

    • 17 Feb 2020
  • PFZW plans debt-funded swoop on DP World

    A Dubai World subsidiary has agreed to buy port operator DP World for $13.9bn. The lending desks at Citigroup and Deutsche Bank will be big winners from the debt-fuelled transaction.

    • 17 Feb 2020
  • Eisa returns for dual-currency refinancing

    Property company Eisa Holding has returned to the loan market for a refinancing deal through bookrunner First Commercial Bank.

    • 17 Feb 2020
  • Updated: Fosun seeks $650m loan with hefty top group

    Fosun International has returned to the offshore loan market for a $650m refinancing that is being run by a large banking group at the top.

    • 14 Feb 2020
  • People moves in brief

    HSBC hires Lahham for MENA corporate finance — Lisanti broadens markets role at Citi — Muscatt joins BMO

    • 13 Feb 2020
  • Banks jostle for position in sustainable M&A revolution

    Nomura has made sustainability one of the pillars of its fightback in investment banking, as it joins the race to harness the power of sustainability-related M&A and capital markets deals.

    • 13 Feb 2020
  • HSBC appoints Lahham for advisory and coverage

    Nabil Lahham has joined HSBC to head up advisory and corporate finance coverage for the Middle East, North Africa and Turkey. He was most recently at Perella Weinberg Partners.

    • 13 Feb 2020
  • AutoScout scores strong syndication despite high leverage

    The syndication of loans to fund Hellman & Friedman’s carve-out of AutoScout24 has seen strong demand, sufficient to support pricing through the tight end of talk on both tranches. The deal has also been recut to squeeze out a larger first lien, cutting the cost of a deal that is among the most levered public issues seen in Europe since the 2007-08 financial crisis.

    • 13 Feb 2020
  • UK fiscal splurge cemented as ‘last Mohican’ is ousted

    The ousting of Sajid Javid as the UK's chancellor of the exchequer has been interpreted in financial markets as a power grab by prime minister Boris Johnson. Javid's removal is likely to strengthen the government’s bias towards populist economics, “rewriting the Treasury’s fiscal rules”, according to one investor.

    • 13 Feb 2020
  • Thiam quits Credit Suisse on fixed income high

    Credit Suisse has reported a strong end to last year for fixed income sales and trading, in chief executive Tidjane Thiam’s last week in the job.

    • 13 Feb 2020
  • Trans Retail’s unusual fee payment surprises bankers, but more clarity is needed

    Trans Retail Indonesia, also known as Carrefour Indonesia, has returned to the loan market for a $740m-equivalent dual-currency deal. It features an unusual fee structure that has left many bankers scratching their heads, writes Pan Yue.

    • 13 Feb 2020
  • Investec makes five hires and continues broking push

    Investec has furthered its push in corporate finance with five new hires. It continues to win new UK broking mandates.

    • 13 Feb 2020
  • High yield in a hiatus — IG minds turn to ESG

    High yield is mostly in a hiatus, with issuers waiting for full year numbers before pushing back into the market. Only UK broadband company TalkTalk is issuing this week, offering a rare slug of sterling supply to a market that has been euro-dominated for most of the year. For the corners of the loan market without such problems, though, there is still a bid, even for credits with stories.

    • 12 Feb 2020
  • Sustainability: more stick, less carrot

    Sustainable finance players are enthusiastic about regulation, which they expect to bring clarity and order to the market. It may — though when the new EU rules are implemented they are likely to irk participants more than they expect. But what would be really effective are direct actions that bypass finance.

    • 11 Feb 2020
  • Swissport preps refi as HNA exit talks return

    Swissport is looking to reprice its existing €850m term loan and add on another €50m, in a test of market appetite to tighten terms for companies with owners outside the top tier group of sponsors. The refi comes as reports suggest HNA Holdings, the Chinese conglomerate, is once again looking to sell the company after talks last year collapsed.

    • 11 Feb 2020
  • Trans Retail shakes things up with new loan

    Trans Retail Indonesia, also known as Carrefour Indonesia, has launched a dual-currency deal into general syndication, opting for a slightly different approach to paying participation fees to lenders.

    • 11 Feb 2020
  • Alcentra promotes Glaser to sole head of European direct lending

    Peter Glaser will become sole head of European direct lending at Alcentra, as his former co-head Graeme Delaney-Smith is leaving the firm for retirement. Alcentra has also hired two senior people for its origination team.

    • 10 Feb 2020
  • Bayside promotes Scotland for special situations

    Andrew Scotland has become co-head of Bayside Capital’s special situations debt activities in Europe.

    • 10 Feb 2020
  • Santander scores solution for costly undrawn revolver exposures

    Santander has bought credit protection on two portfolios of undrawn revolving credit facilities, taking advantage of a regulatory decision last year to sharply boost the efficiency of the protection. The deal points the way for banks to cut the costs of providing revolvers, which are usually extended as a ‘loss leader’ for a broader banking relationship.

    • 10 Feb 2020
  • US natural gas exposure hits Natixis

    Natixis, one of the investment banks that has gone furthest to prioritise greener financing, had to ramp up its provisions for credit loss from US natural gas producers in the fourth quarter, pointing to “structural transformation” in the sector. But it told GlobalCapital that it still saw opportunity in the industry.

    • 07 Feb 2020
  • PV Gas in talks with banks for syndication strategy

    PetroVietnam Gas (PV Gas) is in talks with banks about its syndication plan for a nine year loan.

    • 07 Feb 2020
  • Goldman’s growth plan faces Europe test

    As Goldman Sachs hunts for incremental gains in its investment banking division, it need look no further than its European franchise, where it continues to trail JP Morgan, writes David Rothnie.

    • 06 Feb 2020
  • Sector Alarm follows suit in repricing divi deal

    Sector Alarm, the Norwegian-based home security company, is looking to reprice its leveraged loan debut from last year, cutting the margin on the €590m facility from 350bp at issue down to 300bp-325bp. The move follows a wave of loan repricings and refinancings from some of the largest issuers, as credit markets continue to tighten despite increased jitters around global growth and the spread of coronavirus.

    • 04 Feb 2020
  • Credit Suisse starts syndication of Zayo buyout debt

    Credit Suisse has started general syndication of more than $5bn of debt funding EQT and Digital Colony’s acquisition of Zayo, one of last year’s largest LBOs. The dollar market will take the lion’s share of the acquisition loan, with $4.235bn of first lien on offer, but even the euro tranche is substantial, at $825m-equivalent.

    • 03 Feb 2020