Leveraged Loans - All Articles

  • Lloyds, RBS waive fee for CLBILS lending

    Lloyds Bank and Royal Bank of Scotland have decided not to charge clients an arranging fee when lending via the UK’s Coronavirus Large Business Interruption Loan Scheme (CLBILS), while HSBC will not charge any early repayment fees.

    • 30 Apr 2020
  • Deutsche regains Germany crown in time of crisis

    Deutsche Bank has regained its number one spot in its home market, but it was its traditional investment banking business that shone rather than investments made as part of the firm’s new Germany-focused strategy, writes David Rothnie.

    • 30 Apr 2020
  • Matalan shows government loans likely to come senior in capital structure

    UK discount clothing retailer Matalan said this week that it hoped to take advantage of the government’s Coronavirus Large Business Interruption Loan Scheme (CLBILS) — but that the extra £50m available under the programme will have to be senior to its public bonds, requiring bondholder consent.

    • 29 Apr 2020
  • SSD mart to face Covid-19 impact on reopening

    The Schuldschein market is expected to reopen in a matter of days, but arrangers will face a changed market and will have to adapt to the new corporate lending landscape created by the coronavirus pandemic.

    • 29 Apr 2020
  • Deutsche predicts IB to make more than last year

    In contrast to what analysts had expected before its first quarter results, Deutsche Bank reckons its investment bank will outperform last year’s revenue figures in 2020. However, its fixed income and currencies sales and trading business did not match peers’ revenue growth in the first quarter.

    • 29 Apr 2020
  • Fallen angel M&S wins covenant amnesty from lenders

    Marks & Spencer, the UK retailer, has negotiated with its lenders to relax the covenant testing on its £1.1bn revolving credit facility, as it tries to mitigate the effects of a pandemic that has sent its ratings crashing into junk territory.

    • 28 Apr 2020
  • FCA warns banks not to lean on lending to win coronavirus mandates

    The Financial Conduct Authority has written to UK banks warning them against pressuring clients for mandates on Covid-19 equity capital raises using their lending relationship as justification.

    • 28 Apr 2020
  • Coronavirus markets boom helps UBS haul in profits

    UBS generated almost as much profit before tax from its global banking and markets operations in the first quarter as it did across all of last year, it revealed on Tuesday. This was despite taking credit losses and marking down exposures. The bank benefitted from a good turnout in FX and rates and its heavy involvement in a shrunken M&A fee pool.

    • 28 Apr 2020
  • Coronavirus intensifies thirst for new responsible capitalism

    The Covid-19 pandemic is an ESG issue. More than ever before, a natural phenomenon is driving markets. Suddenly, social responsibility is no longer kooky but required of all. How are responsible investors reacting — and can the crisis lead to a better model of financial markets, where all stakeholders are considered?

    • 27 Apr 2020
  • Adani Electricity ditches syndication, clubs $400m loan

    Adani Electricity Mumbai has decided to close its debut offshore borrowing as a club deal with eight banks, bringing an end to long-running discussions about a possible syndication.

    • 27 Apr 2020
  • SMI mandates banks for $500m refi

    Indonesia’s Sarana Multi Infrastruktur (SMI) has mandated five banks for a planned $500m refinancing loan. But bankers on the deal warn the terms could change due to uncertain market conditions.

    • 27 Apr 2020
  • Techcombank boosts debut loan to $500m

    Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has closed its maiden borrowing at a bigger size of $500m, after receiving strong response during syndication.

    • 24 Apr 2020
  • Qingyuan seeks loan payment delay amid oil price plunge

    Shandong Qingyuan Group Co, a Chinese manufacturer and distributor of petrochemical products, is in talks with lenders to delay payment on a $1bn loan sealed last September as volatile oil prices take a toll on the company’s business.

    • 24 Apr 2020
  • Wumei raises over €1bn for Metro China buy

    Chinese retailer Wumei Technology Group has raised a loan of over €1bn to support its acquisition of German company Metro’s Mainland business.

    • 24 Apr 2020
  • Safran bolsters cash position with new €3bn facility

    French aerospace and defence company Safran has set up a new €3bn loan facility.

    • 23 Apr 2020
  • Broking’s challengers look to grasp crisis opportunities

    Europe’s banks sniff opportunities amid the crisis as they look to build out their corporate broking businesses, but they will face fights to remove incumbents, writes David Rothnie.

    • 23 Apr 2020
  • Punch asks bondholders to look at last year's figures when assessing debt

    UK pub companies with secured debt structures are asking bondholders to waive covenants and suspend potential enforcement action, as the government-mandated shutdown continues. Bondholders in Punch Taverns Finance B are being asked to feed last year's figures into covenant calculations while the lockdown is in force, in a potential model for the other pub companies struggling with stalled cashflow.

    • 23 Apr 2020
  • Crisis will be 'Darwinian' for private debt — Tikehau’s co-founder Mathieu Chabran

    GlobalCapital's Silas Brown spoke to Mathieu Chabran, co-founder of European alternative asset manager Tikehau Capital. They discussed how the relatively new private debt market in Europe will navigate its way through the pandemic, who the winners and losers will be in the asset class, and what opportunities may emerge from the dust.

    • 23 Apr 2020
  • Tianqi reels from lithium price drop with $3.5bn loan refi under pressure

    Tianqi Lithium Corp’s rising debt burden since its acquisition of a stake in a Chilean mining company two years ago is causing trouble. The Chinese borrower is seeking covenant waivers and a tenor extension on part of a $3.5bn loan, raising concerns among bankers about the performance of other commodity credits amid the Covid-19 pandemic. Pan Yue reports.

    • 23 Apr 2020
  • Levfin losses and deriv hedges weigh on Credit Suisse

    Credit Suisse took a $294m hit from marking leveraged finance underwriting exposure to market in the first quarter, its results on Thursday showed, as March’s volatility and jump in credit spreads took their toll.

    • 23 Apr 2020
  • Fiat Chrysler draws on €6.25bn revolver

    Italian-American car company Fiat Chrysler has drawn down on its €6.25bn revolving credit facility to shore up its finances during the Covid-19 pandemic, though the company has left a new bridge loan untouched.

    • 22 Apr 2020
  • Correction: Zhaoheng gets tenor extension on old loan

    Zhaoheng Hydropower (Hong Kong) has obtained a maturity extension for a $128m loan sealed in 2017, after difficult market conditions put pressure on its refinancing abilities.

    • 22 Apr 2020
  • Helaba sells SSD through Covid-19 storm

    Helaba has been far more active than other arrangers in the Schuldschein market, launching at least three deals after the pandemic struck European capital markets in March. While others told clients to postpone deals until clarity emerged on price and investor appetite, the Frankfurt-based Landesbank has ploughed ahead.

    • 21 Apr 2020
  • Deutsche sets up sustainable finance team to go beyond green bonds

    Deutsche Bank has set up an inter-disciplinary sustainable finance team in its capital markets group, aiming to be “viewed as [a] market leader on this important subject”, as it senses that clients, including big oil and gas companies, are having increasingly to consider environmental and social issues to access the capital markets.

    • 20 Apr 2020
  • DFS pulls up seat for additional crisis loan

    The UK’s DFS Furniture is in talks with its lending group for an additional credit facility of up to £70m to sit alongside the sofa seller’s main bank line, as companies continue to lean heavily on their lenders to get them through the worst of the coronavirus pandemic.

    • 20 Apr 2020
  • Country Garden seeks $140m loan for investments

    Chinese property firm Country Garden Holdings Company is wooing lenders to a $140m loan to support its investments in two start-ups.

    • 20 Apr 2020
  • ArcelorMittal adds $3bn in loans to bolster cash position for pandemic

    ArcelorMittal, the steel company headquartered in Luxembourg, has signed a $3bn new loan facility with four banks.

    • 17 Apr 2020
  • EcoGreen returns for $150m loan

    Chinese chemical company EcoGreen International Group has returned to the offshore loan market after a three year break for $150m.

    • 17 Apr 2020
  • Bond issuance spree boosts US bank results

    US banks this week reported stellar returns from trading and underwriting in the first quarter, even as the bottom line was hit by gigantic writedowns and reserves for credit losses, as the economic and financial disruption from the coronavirus crisis took its toll.

    • 16 Apr 2020
  • People moves in brief

    Lazard hires restructuring lawyer — Former GSO MD joins Kennedy Lewis — RBC picks high yield and loan sales head

    • 16 Apr 2020
  • Financial sponsor teams must play waiting game

    Banks have been building their financial sponsor coverage teams on a record period of deal making. Now they have a different fight on their hands, but bankers are playing down the threat of a 2008-style meltdown, writes David Rothnie.

    • 16 Apr 2020
  • UK universities face moment of reckoning, say investors

    Several investors have told GlobalCapital of their concern for the outlook of UK universities as borrowers. They worry that the spread of coronavirus will hit revenues, lower the demand from international students and may in the end hasten a shift towards remote learning.

    • 16 Apr 2020
  • Lazard hires lawyer as restructuring adviser

    Christopher Mallon has joined Lazard’s financial advisory team as a senior adviser concentrating on global restructuring, at a time when that line of business is likely to become very busy.

    • 16 Apr 2020
  • Huazhu seeks loan covenant waiver on Covid-19 impact

    Chinese hotel company Huazhu Group, previously known as China Lodging Group, is asking lenders’ consent to waive some of the financial covenants on a recent syndicated loan.

    • 16 Apr 2020
  • Insolvency law changes may be missing the point

    Insolvency and restructuring practitioners have been catapulted into an unprecedented whirlwind of activity by the coronavirus, as even healthy companies suddenly find themselves staring over a financial precipice. In the UK, the government will change insolvency rules to ease these situations, but specialists believe there is more to be gained by using existing laws better.

    • 16 Apr 2020
  • JP Morgan marks down bridge book but no rush to exit

    JP Morgan has taken an $820m writedown on its book of bridge loans, nearly halving its investment banking revenues for the first quarter. However, the bank is not hurrying to exit these positions. Chief executive Jamie Dimon said “a couple” of its bridges could be syndicated this quarter if conditions are supportive.

    • 15 Apr 2020
  • Hipgnosis latest to ramp up revolver

    The UK’s Hipgnosis Songs has increased the size of its sterling revolving credit facility, as bankers say that the coronavirus crisis means many more borrowers will look to increase existing credit lines where they can.

    • 15 Apr 2020
  • HSBC pushes closer integration with fresh global banking revamp

    HSBC has overhauled the structure of its global banking business for the second time in as many years in a push to cut costs and bring its commercial and investment banking divisions closer together.

    • 14 Apr 2020
  • RBC hires Sayers as HY and loan sales head

    RBC Capital Markets said it had hired Joe Sayers, a former Yorkshire county cricketer, as head of high yield and loan sales.

    • 14 Apr 2020
  • German blue chips to reopen SSD market

    Schuldschein arrangers are waiting for large German blue chips to launch transactions, to help ease the market’s reopening after the coronavirus. According to market sources, deals are being prepared and are expected to launch in the next one or two weeks.

    • 14 Apr 2020
  • Schuldschein Covid-19 deal tracker

    GlobalCapital has launched a deal tracker for the Schuldschein market during the pandemic, for readers to follow primary issuance in the private debt market.

    • 14 Apr 2020
  • Bank of England CP funds start flowing to paralysed UK companies

    Official financial lifelines to keep UK companies alive through the coronavirus pandemic are already having a tangible effect. Shares in Redrow, the UK housebuilder, rose 7.5% on Thursday morning after it announced it had been approved to borrow up to £300m from the Bank of England’s commercial paper facility for investment grade companies.

    • 09 Apr 2020
  • Private equity funds warned over quarter-end numbers

    The International Private Equity and Venture Capital Valuation Guidelines (Ipev) body has warned funds to take special care over quarter-end reporting and valuation of portfolios, so that marks for sponsor-owned companies reflect as well as they can the devastation of the coronavrius pandemic, rather than the benign conditions prevailing at the start of the year.

    • 09 Apr 2020
  • H&M signs €980m short term crisis revolver

    Fashion retailer H&M has signed a €980m revolving credit facility to sit alongside its existing main bank line, as the Swedish company becomes the latest to turn to the bank market to bolster its finances during the coronavirus pandemic.

    • 09 Apr 2020
  • Techcombank attracts 21 in syndication

    Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has brought in 21 banks for its debut borrowing in the loan market.

    • 09 Apr 2020
  • Pigasse lands as Centerview’s new French boss

    Centerview Partners has appointed ex-Lazard rainmaker Matthieu Pigasse as head of its new French operation, as the boutique advisory firm expands in continental Europe with a 15-strong team.

    • 08 Apr 2020
  • ‘Private credit will come out of this stronger’ – Pemberton’s Drake-Brockman on the fate of European direct lending

    Some fear a sorry fate for European private debt funds, as small and medium-sized businesses across the continent struggle to stay afloat amid the devastation caused by Covid-19. Symon Drake-Brockman, founder and managing partner of Pemberton Capital Advisers, one such private debt fund, spoke to GlobalCapital’s Silas Brown about the pandemic and the prospects for private credit in its wake.

    • 08 Apr 2020
  • UK lockdown puts pressure on pubco securitizations as banks stuck with Stonegate debt

    The coronavirus lockdown in the UK is hurting cashflows to pub company securitizations, potentially putting firms in the firing line for bondholders, who have strong asset security rights in the highly leveraged vehicles. Meanwhile, banks are still sat on the £1.45bn acquisition debt to fund Stonegate’s takeover of Ei Group, which technically ranks behind one of the largest pubco securitizations, Unique.

    • 08 Apr 2020
  • Private equity is just another ownership structure

    Outrage has erupted among US progressives at efforts from the private equity industry to ensure their portfolio companies get a piece of government support for corporates. The buyout barons don’t do much to endear themselves to the public, but sponsor funds are just another legal vehicle for owning equity — and there’s no point punishing a company for its owners.

    • 07 Apr 2020
  • European M&A tipped to restart after the summer if crisis eases

    Some M&A bankers said they plan to pull the trigger on deals after the summer if the coronavirus pandemic continues to be contained, though lenders warned that internal credit analysis has become more stringent.

    • 07 Apr 2020
  • Schuldschein market in a muddle over Covid-19 pricing levels

    Schuldschein bankers are working out what pricing is fair during the Covid-19 crisis, as investors observe sharp widening in euro bond spreads.

    • 07 Apr 2020
  • Geely eyes $900m loan for restructuring

    Zhejiang Geely Holding Group, a Chinese auto company, is in talks with banks for a new loan to support a planned restructuring.

    • 07 Apr 2020
  • UK government extends loan scheme to some of ‘squeezed middle’ — but not all

    The UK government has moved to bridge the gap between its two financial support schemes for businesses hampered by the coronavirus: one aimed at investment grade firms and one for small companies with revenue less than £45m.

    • 03 Apr 2020
  • Guggenheim tops chart as IB revenues shrink

    Investment banking revenue in March was lower than normal as the coronavirus pandemic sapped risk appetite — but it was far from a total wipeout.

    • 02 Apr 2020
  • Daimler gears up on cash as companies hurry new lines of credit

    Daimler has signed a €12bn one year loan with four banks, to strengthen its cash position for the pandemic’s stormier days. It joins a host of borrowers agreeing new credit lines with relationship banks, rather than drawing down existing facilities. Bankers say the borrowers hope to enter the bond markets down the line.

    • 02 Apr 2020
  • Dyson first UK firm to sell PPs under clouds of Covid-19

    Dyson has become the first UK company to sell private placements in the past month, as the coronavirus complicates primary issuance and the market instead focuses on amendments to existing deals. Sources said the UK manufacturer succeeded because it was realistic over the price it would have to pay.

    • 02 Apr 2020
  • Aircraft lessors under spotlight in PP market

    Aircraft lessors have become popular borrowers in the US private placement market but coronavirus pandemic has thrown up a whole new magnitude of risk for the industry and many will be looking to amend the terms of their deals. Many market participants predict that the conversations between borrowers and investors will be tricky.

    • 01 Apr 2020
  • El Corte Inglés grabs short-term funding

    Spain’s El Corte Inglés has signed a €1.311bn short-term revolving credit facility, with the department store returning to the loan market twice in quick succession to make sure it has the cash to ride out the next year.

    • 01 Apr 2020