Leveraged Loans - All Articles

  • Hotel firm Whitbread amends clause to avoid technical default

    Whitbread, the UK hotel and restaurant company behind Premier Inn, has amended a clause in its debt documentation which could have left it liable for technical default. One source said several companies may have to go through a similar amendment process.

    • 31 Mar 2020
  • Logan builds demand for HK$2bn loan

    Logan Property Holdings has joined a few Chinese real estate companies in the offshore loan market, seeking a HK$2bn ($258m) borrowing.

    • 31 Mar 2020
  • BMW sells quick SSD as German autos test private debt

    BMW has raised €200m from a single investor in the Schuldschein market, according to several market sources. Arrangers are talking with Schuldschein investors to gauge appetite for German auto manufacturers as the Covid-19 pandemic wreaks havoc on corporate earnings.

    • 30 Mar 2020
  • Fiat Chrysler gets bridge loan in place as HY remains shut

    Italian-American car company Fiat Chrysler Automobiles has signed a €3.5bn bridging facility, as the company becomes the latest to secure bank funding while it waits for calmer times in the capital markets.

    • 30 Mar 2020
  • Taiwanese banks push for market disruption amid rising TaiFX

    Taiwanese banks have triggered a market disruption clause on a recent loan signed by Indonesian company BFI Finance. The move, which allows lenders to increase the margins they earn on deals, is being considered for numerous other transactions too, GlobalCapital Asia understands.

    • 30 Mar 2020
  • Soho China eyes $1bn loan for take-private

    Property developer Soho China is in talks with banks for a bridge loan to support its potential take-private deal by private equity firm Blackstone, according to sources close to the situation.

    • 30 Mar 2020
  • Details emerge on LMA's loan automation plans

    Some of the most commonly used syndicated loan documents will fall under the remit of the Loan Market Association's new automation platform, which is expected to be launched before the end of the year.

    • 27 Mar 2020
  • CP Group’s acquisition loan open in senior

    Charoen Pokphand Group has invited banks to join a $7.5bn dual-currency loan in senior syndication. The deal will support the Thai conglomerate’s acquisition of Tesco’s Asia business.

    • 27 Mar 2020
  • Wizard wheeze: leveraged investors worry about sponsor cash injections

    Merlin Entertainments, one of last year’s biggest take-privates, has some investors worried about whether it will seek new financing to get it through the coronavirus lockdowns that have shuttered the theme park business’s main sites. Any new financing could weaken the security package for existing lenders and bondholders — though liquidity to get through the lockdowns is essential, writes Owen Sanderson.

    • 26 Mar 2020
  • Schuldschein moves undercover as firms chase big buyers

    The Schuldschein market’s official lines of bookbuilding have been all but shut during the Covid-19 crisis, but sources have told GlobalCapital that several companies have discreetly approached larger lenders for club or bilateral deals.

    • 26 Mar 2020
  • Your country needs you, investment bankers

    The 2008 financial crisis forged a generation of investment bankers well versed in advising governments — and with many having returned to banking, they are likely to be in demand again. But history suggests banks will not be earning lucrative fees, writes David Rothnie.

    • 26 Mar 2020
  • Loans go digital - LMA starts automation platform planning

    Automation is coming to syndicated loans as the Loan Market Association announces it has entered into an agreement with companies to explore the idea, with loans bankers welcoming the development.

    • 26 Mar 2020
  • Asian loans ready for tougher times after coronavirus

    Asian borrowers should ready themselves for tighter covenants on their loans once the Covid-19 outbreak is brought under control, multiple senior loans bankers told GlobalCapital Asia this week. A much-needed price correction may also be coming, writes Rashmi Kumar.

    • 26 Mar 2020
  • Ping An’s healthcare unit makes offshore loan debut

    An Ke Technology Co, a subsidiary of Chinese conglomerate Ping An Group, is in the market seeking a $300m three year loan.

    • 26 Mar 2020
  • Ex-IBCM head Amine leaves Credit Suisse

    James 'Jim' Amine has left Credit Suisse, which has folded his private credit opportunities business into a different unit.

    • 25 Mar 2020
  • Sponsors seek specialist debt funds for cash injections as central banks refuse support

    Private equity funds are considering how to support their portfolio companies with cash injections or rescue financings, with some sponsors turning to a select group of specialist buyers still willing to lend money against the right structure.

    • 25 Mar 2020
  • FCA stands firm on Libor transition deadline

    After discussions with the Bank of England and the Sterling Risk-Free Reference Rates Working Group over the impact of Covid-19 on companies’ plans to transition from Libor, the UK’s Financial Conduct Authority said on Wednesday that the final deadline of the end of 2021 was immutable.

    • 25 Mar 2020
  • Dai Quang Minh seeks banks for $130m loan

    Dai Quang Minh Corp, the real estate arm of Vietnamese carmaker Truong Hai Auto Corp, has opened a $130m loan into general syndication.

    • 25 Mar 2020
  • Blackstone's GSO raises huge European direct lending fund

    GSO Capital Partners, the credit unit of private equity firm Blackstone, has raised roughly $4.5bn for its second European direct lending fund, according to an SEC filing. But as the coronavirus pandemic wrecks corporate balance sheets, several sources are concerned with how European companies will fare.

    • 24 Mar 2020
  • Leveraged companies need help too

    Extraordinary support measures from central banks across the world include an element of corporate lending, but all the schemes announced so far target SMEs, and companies rated BBB- and above. That leaves a gaping hole in the rescue net, which the authorities must fill.

    • 24 Mar 2020
  • World looks to German crisis response ideas

    The UK government’s offer on Friday to pay 80% of the wages of furloughed workers came in the nick of time to save thousands of jobs in manufacturing and services. But few of those affected realised they were benefiting from a German idea. The move highlights how the coronavirus crisis is causing a rapid dissemination of techniques around the world.

    • 24 Mar 2020
  • Dunelm fully draws down RCF as UK shuts down

    Dunelm, the UK homewares company, has drawn down entirely its £165m revolving credit facility, as it became the latest European firm to lean on its banking group amid the sharp economic downturn from the Covid-19 pandemic.

    • 24 Mar 2020
  • BBC refinancing delayed as uncertainty lingers

    BBC Commercial Holdings, a commercial subsidiary of the BBC that produces and sells content to other broadcasters across the world, has decided to delay a £170m debt refinancing in the US private placement market, according to market sources, as bankers struggle to cope with price discovery.

    • 24 Mar 2020
  • Laments of ‘juniorisation’ as crisis measures resurface

    Cuts made to senior staff in the debt markets are coming home to roost now that the effects of the Covid-19 pandemic are coming to bear on loans and private placements. Old hands that navigated the previous crises are in short supply as borrowers and investors look to implement deal amendments to cope with a coming recession.

    • 24 Mar 2020
  • Bankers eye Indian loans amid signs of stress

    Indian banks and corporations hoping to fund in the offshore loan market were already facing difficult questions, following a wide-ranging clean-up of the country’s financial system. They are now facing a worse problem: the spread of Covid-19.

    • 24 Mar 2020
  • ‘Sympathetic’ investors to waive covenants in US private placements

    Institutional investors in the US private placement market are preparing for a round of covenant waivers, as companies brace for the economic impact of the coronavirus pandemic. Bankers in turn are shelving primary issuance plans and turning their attention to winning amendment mandates.

    • 23 Mar 2020
  • CP support leaves gaps but banks ‘playing ball’

    Three UK companies have already flagged their interest in the Bank of England’s emergency commercial paper funding scheme for large businesses, announced on March 20. The big three rating agencies will help fast-track unrated investment grade issuers into the scheme, but the strict eligibility limits leave leveraged and smaller companies out in the cold.

    • 23 Mar 2020
  • Dollar liquidity in question as central banks try to halt panic

    A rush to dollars in recent days has caused dysfunctions in various corners of the financial markets. The US Federal Reserve has rushed to put out the flames, including with new measures on Monday.

    • 23 Mar 2020
  • Cash-rich firms shun bonds, poor beg for loans

    Corporate funding markets have been thrown into turmoil faster than anyone can remember by the aggressive onslaught of the coronavirus and government measures to put society in emergency shutdown. Borrowing costs have soared for all firms, but markets are not closed. As Jon Hay, David Rothnie and Silas Brown report, the coming weeks will sort those that can still raise cash from those that need rescuing.

    • 19 Mar 2020
  • Financing firm for KKR’s Viridor buy despite market chaos

    Banks financing KKR’s £4.2bn purchase of waste management firm Viridor from Pennon were able to demonstrate certainty and deliverability of the financing for the deal to the Pennon board, despite chaotic markets which have seen rapid plunges in the prices of leveraged loans and high yield bonds.

    • 19 Mar 2020
  • Debt advisers called up for liquidity battle

    Firms across Europe are clamouring for crisis funding but while debt advisory bankers have joined the frontline in finding solutions some admit they may struggle to cope with the sheer scale of the challenge, writes David Rothnie.

    • 19 Mar 2020
  • Competition laws hamstring banks in Covid-19 financing hunt

    Bankers trying to arrange finance for companies during the coronavirus crisis are being hindered by competition rules that control when and how they can talk to other banks.

    • 19 Mar 2020
  • Wuhan’s Humanwell seeks $150m loan amid Covid-19

    Humanwell Healthcare Group Co, a pharmaceuticals company based in the epicentre of the Covid-19 pandemic, has launched a $150m loan into general syndication.

    • 19 Mar 2020
  • GlobalCapital's RCF drawdown and new credit line tracker

    GlobalCapital has compiled a short list of companies known to have drawn their revolvers or arranged new loans since the coronavirus crisis engulfed markets.

    • 19 Mar 2020
  • CapVest cans Curium sale as carnage hits M&A

    CapVest has cancelled the planned sale of Curium Pharma, as market conditions wrecked the investment appetite of the three final round bidders and banks cut financing commitments. It was one of the larger M&A financings slated for syndication in the second quarter, but with the Crossover index now trading over 650bp, compared with close to 200bp when first round bids were due, the three sponsors in the final round would have struggled to get a deal away.

    • 18 Mar 2020
  • Prasac makes loan return amid ownership shake-up

    Cambodia’s Prasac Microfinance Institution has returned to the loan market for a $75m deal amid an ownership change.

    • 18 Mar 2020
  • Intesa Sanpaolo pledges €15bn emergency loans to Italian companies

    Intesa Sanpaolo will provide Italian companies with €5bn worth of new one to 1.5 year loans, and offer an additional €10bn of debt to customers through existing credit lines, to help steer the nation's economy through the Coronavirus crisis.

    • 17 Mar 2020
  • Soon we’ll know what 'relationship banks' are really worth

    Since the financial crash, the crucial part of relationship banking has been pretty straightforward: offer borrowers cheap cash and become a core lender, then pitch for ancillary business. But the disastrous effects of Covid-19 on corporate finance mean that cozy relationships will be tested, with companies under pressure and in serious need of extra cash. We’ll soon know which relationships were real and which were not.

    • 17 Mar 2020
  • Banks prepare for mass RCF drawdowns despite borrowers' qualms

    The coronavirus crisis is shaking up companies' financing arrangements in the most drastic way since the 2008-9 financial crisis, as firms strive to secure liquidity for what are likely to be many tough months. So far there have been only a few high profile cases of companies drawing down revolving credit facilities, but this is expected to grow, as long-established norms crumble and new patterns emerge.

    • 17 Mar 2020
  • Shandong Energy seeks $300m loan through Ping An

    Ping An Bank has stepped up in the offshore loan market, launching its first deal on a sole basis for Shandong Energy Group.

    • 17 Mar 2020
  • Sun Hung Kai makes rare return for HK$500m loan

    Hong Kong financial services firm Sun Hung Kai & Co has returned to the loan market after nearly four decades for a HK$500m ($64m) deal.

    • 17 Mar 2020
  • A corporate crisis needs a corporate bailout

    Central banks are dusting off the 2008 playbook, thrusting liquidity at the banking system and hoping some of it gets through to banks' end clients. It’s better than nothing, but the coronavirus crisis one primarily of corporates — and the rescue toolkit needs updating.

    • 16 Mar 2020
  • Private debt funds brace for SME bonfire

    Private debt funds in Europe may be the hot new thing to some in capital markets but they could be about to come of age, having never been through a serious credit downturn before. The market is under scrutiny over how it will cope with the credit ramifications of Covid-19.

    • 16 Mar 2020
  • Could CLOs see another ‘greatest generation’?

    Static securitizations of a pre-crisis vintage were among the poorest performers of the post-crisis era, as mortgage standards slipped into the boom year of 2007. But CLOs printed in the 2006 and 2007 are among the best deals ever done in the market, giving managers locked up leverage and the flexibility to exploit a huge market dislocation. Could the 2020 crisis see the same?

    • 16 Mar 2020
  • Press Metal raises $300m for Bintan Alumina stake buy

    Malaysia’s Press Metal Aluminium has raised a $300m dual-tranche financing to support its acquisition of Bintan Alumina Indonesia (BAI).

    • 16 Mar 2020
  • MMI considers A&E as refi pressure builds up

    Singapore hard disk drive company MMI International is looking to amend and extend an old loan ahead of a looming maturity, as it faces pressure on its financials.

    • 13 Mar 2020
  • New World China divvies up loan among 13 banks

    Property developer New World China Land has closed a HK$6.85bn ($880m) loan, attracting nine participants during syndication.

    • 13 Mar 2020
  • ESR makes loan debut with $250m deal

    ESR Cayman, a Hong Kong-listed logistics real estate company, is tapping the offshore loan market for a debut $250m borrowing through Standard Chartered.

    • 13 Mar 2020
  • EU green standard could stop transition bonds

    Since the invention of green bonds 13 years ago, market participants have circled round the problem of what is green. There are many answers, such as the Climate Bonds Initiative's standards, but none have any official authority. That is about to change. The EU's Green Bond Standard is likely to become law before the year is out, and it could alter the market in several ways.

    • 13 Mar 2020
  • Solidarity vital as Italian state, banks and companies face intensifying crisis

    The outlook for Italy continues to worsen, as both the coronavirus pandemic and financial markets rout deepened on Thursday. But essential services are functioning, in society and markets, and Italians are helping each other through the crisis, including with funding difficulties. By Jon Hay and Lewis McLellan

    • 12 Mar 2020
  • Banks stand ready to back corporates, but stretched borrowers draw down

    Bankers are confident that companies up and down the ratings scale can lean on their lending groups during market volatility. But borrowers in the most stretched groups are not waiting to find out, with some clients already drawing their lines, adding backup loans, and trying to negotiate waivers on debt limits. Silas Brown, Jon Hay and Owen Sanderson report.

    • 12 Mar 2020
  • Return of the MAC: could lenders demand repayment?

    Loans bankers are expecting their relationship clients to start leaning more heavily on their banks, but an arcane and little used clause found in many lending contracts means that banks might be able to demand early repayment or stop further lending.

    • 12 Mar 2020
  • CP Group’s Tesco Asia acquisition gets loan syndication bankers salivating

    Thai conglomerate Charoen Pokphand Group’s $10.6bn purchase of Tesco’s Asia business has been hailed as a “landmark” deal that will liven up the region’s loan market. Bankers are now openly debating how they can get in on a financing that will tap both international and domestic liquidity. Pan Yue reports.

    • 12 Mar 2020
  • Pandemic threatens M&A pipeline

    The coronavirus will depress mergers and acquisitions activity, hurt advisory revenues and change the emphasis of deal-making in 2020, writes David Rothnie.

    • 12 Mar 2020
  • CLO market escapes hard stop as CSAM finds new level

    Credit Suisse Asset Management priced the first deal since Monday’s market collapse through Citi on Wednesday — raising hopes that the large number of open warehouses will escape being stuck on bank balance sheets and find their capital markets exits.

    • 11 Mar 2020
  • NSF agrees to £200m securitization facility with Ares

    Non-Standard Finance (NSF) has announced a six-year £200m securitization facility with Ares Management Corporation providing credit funds.

    • 11 Mar 2020
  • Congleton quits RBC

    One of the internal candidates to become the next permanent head of European M&A at RBC Capital Markets has quit to join a boutique.

    • 11 Mar 2020
  • Under lockdown, Italian banks try to reassure companies

    Italy’s capital markets bankers are keeping calm amid the coronavirus crisis, getting used to working from home, and trying to support clients as well as they can, while wishing for help from Europe and the European Central Bank. But they are not allowing themselves to hope the worst is over. The health crisis is acute and getting worse.

    • 10 Mar 2020
  • Companies to lean on relationship banks through Covid-19 stress

    Companies in sectors under strain from the Covid-19 outbreak are expected to rely on bank funding if debt markets remain out of reach, using funds from as yet undrawn revolving credit facilities and signing new bridges to bond facilities or bilateral loans.

    • 10 Mar 2020
  • Hiring on hold as banks battle virus impact

    Investment banks are said to be freezing hiring plans in capital markets, as the impact of the coronavirus epidemic slashes new issuance volumes and expectations for the year ahead. Some institutions are also said to be using the virus as an excuse to push through planned cuts to banking businesses.

    • 10 Mar 2020
  • Trio provide financing for CP Group’s Tesco buy

    Months of bidding for UK retail giant Tesco’s Asia business has finally ended, with Charoen Pokphand Group emerging victorious. Three banks have provided financing to the Thai conglomerate to support the purchase.

    • 10 Mar 2020
  • Tata Steel, Birla Carbon eschew syndications

    India’s Tata Steel and Birla Carbon have decided not to syndicate their chunky loans, amid reluctance from the bookrunners to sell down their positions in a slowing market for deals.

    • 10 Mar 2020
  • EU Taxonomy a mix of soft and strong, clear and vague

    The European Union’s Taxonomy of Sustainable Economic Activities, the latest draft of which was released on Monday, has been hailed by promoters as the opening of a new chapter in responsible investing. But the document is complex and much will depend on how market participants use it.

    • 10 Mar 2020
  • Alcentra strikes with its largest direct lending deal yet

    Alcentra has provided $530m of senior debt to fund the acquisition of medical device maker Lumenis by Baring Private Equity Asia, in the largest direct lending deal the European private debt specialist has done in its history.

    • 09 Mar 2020
  • Libor floor sweeteners into action as rates plunge

    Lead managers added 1% Libor floors to recent dollar loans from Polynt-Reichold and Genesis Care, part of a package of measures to push them over the line as market conditions deteriorated in the last two weeks. But rates have plunged so quickly that these floors are already in the money.

    • 09 Mar 2020
  • Covs offer leveraged issuers refuge from Covid-19

    Some leveraged issuers could avoid covenant breaches thanks to the coronavirus outbreak, according to researchers, by using the "extraordinary, unusual or non-recurring" carve-outs to add back some costs to Ebitda figures.

    • 09 Mar 2020
  • Supply chain company TVS picks banks for $185m loan

    TVS Supply Chain Solutions, a subsidiary of Indian industrial conglomerate TVS Group, has mandated three banks for a $185m loan that will be syndicated to a small set of banks.

    • 09 Mar 2020
  • Taxonomy coming on Monday

    Sustainable finance specialists are waiting eagerly to see the precise details of the European Union's Taxonomy of Sustainable Economic Activities, the next draft of which will be revealed on Monday.

    • 06 Mar 2020
  • Market awaits BoE moves to help corporates hit by Covid-19

    The Bank of England may soon tweak its macroprudential policies and introduce a new funding scheme for banks to mitigate the economic impact of the Covid-19 coronavirus epidemic on companies. The measures would help lenders at a time when they could face pressure from lower rates and rising impairments.

    • 05 Mar 2020
  • Levfin lurches wider but powers on

    The leveraged loan market has taken a leg wider as coronavirus fears sweep the capital markets. But the primary markets are sucking up the larger discounts and fatter margins and forging ahead, with Polynt-Reichold, Genesis Care, and Inspired Education pressing on and printing deals this week.

    • 05 Mar 2020
  • Pollen Street and investment trust board go to war over planned sale

    Pollen Street Capital and the board of an investment trust it advises are locked in a fight over the potential sale of the investment trust to Waterfall Asset Management, with the board describing Pollen Street’s data room as “of no meaningful use whatsoever and a complete waste of time”.

    • 05 Mar 2020
  • Intu Properties calls off emergency recap due to market vol

    Shares in Intu Properties, the UK real estate investment trust focused on shopping centres, tanked this week after the company said on Wednesday morning that it has called off its £1bn-plus rights issue due to “extreme” market conditions.

    • 04 Mar 2020
  • European levfin market opens up for medical testing firm

    Coronavirus fears and plunging markets meant a flood of pulled deals in leveraged loans — but a strong backdrop for some, notably French medical diagnostics and testing business Biogroup-LCD which launched a €274.7m acquisition loan into general syndication through JP Morgan and Natixis on Tuesday.

    • 04 Mar 2020
  • Luxshare Precision breaks three year hiatus with $500m revolver

    China’s Luxshare Precision is in the market seeking a $500m revolving credit facility, returning to bank lenders after an absence of three years.

    • 04 Mar 2020
  • China Hongqiao returns for $200m

    China Hongqiao Group, an aluminium producer, has returned to the loan market for a $200m borrowing,

    • 04 Mar 2020
  • CDR bids for Huntsworth in mid-market take-private

    Clayton, Dubilier & Rice has launched a take-private bid for UK based healthcare marketing and PR firm Huntsworth, bidding an enterprise value of £524m for the company. The debt financing for the deal is a $295m term loan and a £35m revolver provided by Royal Bank of Canada.

    • 03 Mar 2020
  • Micro Focus presses pause on refi

    Troubled UK tech firm Micro Focus succumbed to miserable market conditions on Monday when it decided to postpone a refinancing and extension of its revolver, promising a return "once market conditions improve".

    • 03 Mar 2020
  • Mazi and Bibbey take over as El Hayek leaves HSBC

    HSBC has made Mehmet Mazi global head of debt trading and financing, a newly created position. It comes after the departure of Elie El Hayek, a veteran of the bank who had run fixed income.

    • 03 Mar 2020
  • TCC lines up $10bn loan for Tesco deal

    TCC Group, controlled by Thai billionaire Charoen Sirivadhanabhakdi, has agreed a $10bn two year loan to support its bid for Tesco’s Asian assets.

    • 03 Mar 2020
  • Buana Finance makes loan return after five year break

    Indonesia’s Buana Finance has returned to the offshore loan market after five years, seeking a $73m loan.

    • 02 Mar 2020