Leveraged Loans - All Articles

  • Green convertibles arrive with Neoen blowout

    Neoen, the French solar and wind energy producer, has issued the first green convertible bond in Europe — and investors’ eager reception of the deal suggests these instruments could be as popular in the equity-linked market as they have become in the straight bond market.

    • 28 May 2020
  • European sectors hit hard by virus reliant on state lending

    Tendam, a fashion retailer, is the latest Spanish company to get syndicated loan backing from state-owned Instituto de Crédito Oficial (ICO), as sectors hit hardest by the coronavirus pandemic lean on state support.

    • 28 May 2020
  • Cineworld raises new cash and gains covenant waiver

    Cineworld announced on Thursday that it had raised on extra $110m of liquidity by extending its revolve. Its lenders also agreed to waive the covenant test for the end of June. The company also plans to tap government lending schemes in the UK and US.

    • 28 May 2020
  • Swissport seeks bondholder backing for priming debt deal

    Swissport, the baggage handling and air cargo group, is asking bondholders to allow it to add €380m of super-senior debt above its existing senior secured bonds and loans, secured by the same collateral but with a priority claim.

    • 28 May 2020
  • Nomura looks to sustainable investment banking future

    Nomura is eyeing acquisitions and a change in chief executive promises a reboot of its investment banking ambitions, writes David Rothnie.

    • 28 May 2020
  • Thirty banks back O2-Virgin Media merger with £4bn bridge

    Syndication of the £4bn bridge loan backing the merger of UK mobile phone company O2 — owned by Spanish telecoms giant Telefonica — with Liberty Global’s Virgin Media cable business was signed on Thursday.

    • 28 May 2020
  • Lenders make less money despite Covid-19 loan boom

    Some of the largest investment banks made 12% less revenue from lending in the first quarter, despite balance sheet expansion as they supported companies, according to research from analytics firm CRISIL Coalition.

    • 28 May 2020
  • Technicolor asks lenders to waive default condition after rights issue pulled

    Technicolor has asked its lenders to waive a default condition so it can appoint a conciliateur and begin a consensual debt restructuring process that includes €400m of new financing and a debt-for-equity swap. This follows the failure of the company’s planned €300m rights issue, announced in mid-February but thrown off course by the coronavirus pandemic.

    • 27 May 2020
  • Retailer Tendam latest in Spain to win ICO crisis support

    Tendam, a fashion retailer, is the latest Spanish company to get syndicated loan backing from the state owned Instituto de Credito Oficial (ICO), as sectors hit hardest by the coronavirus pandemic lean on state support.

    • 27 May 2020
  • Crisis Talk — Carson Block, CIO of Muddy Waters: ‘If capitalism breaks, it’s capitalists who broke it’

    Muddy Waters has fostered a fearsome reputation as a credible, thorough and forceful short seller whose explosive reports are a danger to anyone harbouring a stake in its intended target. Carson Block, its founder and chief investment officer, told GlobalCapital he has never been wrong about a company he’s shorted, though that doesn’t mean he’s made money from every position he has held. According to Block, monetary policies intended to stimulate markets through financial crises actually corrode them, and stifle accountability for serious failures in corporate governance.

    • 27 May 2020
  • Mu Sigma seeks $100m for refinancing

    India’s Mu Sigma, a data analytics firm, has returned to the loan market for an up to $100m deal to refinance its debt.

    • 27 May 2020
  • JP Morgan dusts off Micro Focus refi

    JP Morgan has started syndication on a refinancing loan for Micro Focus, a deal first marketed at the end of February but pulled in the first week of March, in a further sign that the loan market is healing enough to start clearing the overhang of pre-coronavirus financings.

    • 26 May 2020
  • Muyuan debuts with $200m borrowing

    Chinese pork producer Muyuan Foods has set the ball rolling on its debut $200m offshore loan.

    • 26 May 2020
  • Vedanta plans up to $2.5bn loan for privatisation

    Metals and mining company Vedanta Resources is seeking a bridge loan of $2bn to $2.5bn to take its India-listed subsidiary private.

    • 26 May 2020
  • BOL sounds out banks for loan amid Covid-19

    Bank of the Laos PDR is in talks with banks for a new borrowing, returning to to the offshore loan market after raising two deals last year.

    • 25 May 2020
  • Volvo Car gets state backing in loan market

    Sweden’s Volvo Car, a car maker, has become the latest company under pressure from the coronavirus pandemic to sign a state-guaranteed loan, as bankers say that state support is essential to secure commercial bank loans for the worst affected sectors.

    • 22 May 2020
  • On-Bright seeks $206m loan for take-private

    Taiwan-listed On-Bright Electronics is seeking a $206m loan to support its take private.

    • 22 May 2020
  • GuocoLand, Manulife US Reit raise green loans

    Two Singaporean companies, GuocoLand and Manulife US Real Estate Investment Trust, raised green loans this week.

    • 22 May 2020
  • People moves in brief

    Citi picks Nick Darrant as syndicate head — And it sets up new sustainability and science units — JP Morgan reveals next layer of DCM, ECM and M&A bosses

    • 21 May 2020
  • Crisis Talk — with Dan Zwirn of Arena Investors

    In the special situations arena there are few situations quite as special as a global pandemic, and few opportunities quite as large for investment firms that manage to navigate the sell-off in corporate credit, bank loans, CLOs and securitizations correctly. GlobalCapital spoke to Dan Zwirn, founder, CEO and CIO of Arena Investors, and a 25 year veteran of distressed debt and special situations investing about buying free volatility, where to play in retail, and why the CLO market has much further to fall.

    • 21 May 2020
  • New UK insolvency law puts secured creditors in the firing line, Travelodge to be first test

    The new UK insolvency law, introduced into the British parliament on Wednesday, will allow unconsenting creditor classes, including secured creditors, to be crammed down during a restructuring. This could mean bondholders and banks, rather than landlords, take more of the pain in the coming wave of corporate distress. Hotel chain Travelodge is likely to be one of the first major companies to use the new rules.

    • 21 May 2020
  • Genting seeks to delay loan payments as Covid-19 bites

    Cruise ship operator Genting Hong Kong has become the latest Asian company to seek a covenant waiver on a loan as the Covid-19 pandemic hits its operations. A rise in payment deferral requests is putting further pressure on retail banks that are already being forced to take a step back from lending. Pan Yue reports.

    • 21 May 2020
  • Bridge book sales begin with Financière CEP buyout loan launch

    JP Morgan and Nomura have started the syndication of the loan backing Bridgepoint’s buyout of French mortgage insurance broker Financière CEP, in a sign that market conditions have improved enough to fire the starting gun on the sale of loans underwritten before the coronavirus crisis shut markets.

    • 20 May 2020
  • Hope Education makes debut for $200m loan

    China’s Hope Education Group is making its debut in the offshore loan market for a $200m borrowing.

    • 20 May 2020
  • Genting seeks ‘debt holiday’ with loan waiver request

    Genting Hong Kong, a cruise ship operator, has sent out a waiver request to lenders to postpone the principal payments on a $300m loan, as it navigates challenges posed by the Covid-19 pandemic.

    • 20 May 2020
  • Office reopening poses serious risks, with or without virus testing

    Without a vaccine for the coronavirus, it is clear that reopening offices is a serious risk for capital markets businesses. What firms need are strict distancing measures, facial masks and hand sanitiser — but also, crucially, access to frequent testing for the virus and the antibody.But that is a path fraught with difficulty.

    • 19 May 2020
  • Sponsors seen seeking competitors’ loans

    Some financial sponsors are said to be trying to purchase loans from their competitors’ portfolio companies, as an opportunistic way to benefit from the coronavirus-driven disruption. But the European loan market’s restrictive transfer provisions make this a legal high-wire act.

    • 19 May 2020
  • Bankers baffled by FCA's aims in ancillary business probe

    Loans bankers are puzzled by a probe by the UK's Financial Conduct Authority into whether banks attached improper conditions to loans to companies during the coronavirus crisis. They are concerned the FCA could edge into criticism of the system of bank-client relationships that underpin modern corporate finance, and some believe this is already having an influence on how companies think about mandates.

    • 19 May 2020
  • SC Lowy hires for markets, awaiting 'wave of opportunity'

    Richie Revill, formerly at Barclays, has joined the boutique Asian investment bank SC Lowy as head of markets for Europe.

    • 19 May 2020
  • UK Treasury extends CLBILS loan scheme to £200m

    The Treasury announced on Tuesday an extension to the Coronavirus Large Business Interruption Loan Scheme (CLBILS). From May 26 certain businesses can apply for loans up to £200m under CLBILS but there are restrictions on dividend payouts and management pay rises.

    • 19 May 2020
  • MMI looks to extend loan for five years

    Singapore hard disk drive company MMI International has sent out extension requests to lenders on a $580m loan, as it struggles to make the outstanding payment on time.

    • 19 May 2020
  • French retailer Auchan shops for cash in Schuldschein market

    French retailer Auchan has launched a Schuldschein, the first non-German corporate to enter the market since coronavirus hit European capital markets.

    • 18 May 2020
  • JP Morgan names next layer of DCM, ECM, M&A heads

    JP Morgan announced a new set of leaders for its underwriting, coverage and M&A business on Monday, following a series of promotions in February.

    • 18 May 2020
  • Water park group finds extra liquidity

    Theme park group Parques Reunidos has raised an extra €200m from a "select group of existing investors", as it seeks to combat the coronavirus-impaired operating environment that has shut many of its water park locations across Europe.

    • 18 May 2020
  • The coronavirus graphic to watch: Americas overtake Europe

    UPDATED 16 May 3am BST Since March 18, when Europe's coronavirus caseload overtook east Asia's, it has had the most cases. On Tuesday Europe was surpassed by the Americas, which now has 1.86m as of Thursday.

    • 16 May 2020
  • CP Group launches Tesco Asia loan into general

    Charoen Pokphand Group has launched a $7.15bn-equivalent loan into general syndication after attracting five banks at the senior level.

    • 15 May 2020
  • Powerlong attracts three banks for $200m refi

    China’s Powerlong Real Estate Holdings has closed a $200m-equivalent loan with three banks.

    • 15 May 2020
  • Suning Xiaodian returns for mezzanine loan

    Chinese convenience store operator Suning Xiaodian is raising mezzanine debt of up to $300m to refinance an acquisition loan sealed last year.

    • 15 May 2020
  • CMBI hires loans banker from BoCom

    Terry Mo has joined CMB International as a senior product manager in the structured finance department.

    • 15 May 2020
  • UniCredit’s former syndicate boss moves to boutique

    Tim Hoffmeister has taken up senior positions in an M&A advisory firm and a management consultancy in Germany.

    • 14 May 2020
  • Banks credit EMEA loan dominance to quick feet

    Some of Europe’s largest banks have taken large chunks of syndicated loan market share in EMEA this year, as the pandemic has prompted some institutions to flex their muscles and others to retreat.

    • 14 May 2020
  • Frantic few months at loss-making Commerzbank

    It was a busy first quarter at Commerzbank’s corporate clients division, as companies rushed to secure liquidity and access Germany’s support programmes. But that division and the group as a whole made a loss in the quarter, results released on Wednesday showed, as cost of risk rose and valuations of derivative positions fell.

    • 14 May 2020
  • The pandemic payback

    The coronavirus pandemic will test the complex relationship between bank loans and the fabled ancillary business supposed to make it all worthwhile. Some banks have provided heaps of extra cash for European clients to keep them alive and it has changed the shape of the loan market, with some banks ramping up market share. But will companies return the love when the time comes?

    • 14 May 2020
  • Banks prepare to reject PTPN loan waiver, point to cash pile

    Indonesian palm oil producer Perkebunan Nusantara III (PTPN) is seeking consent from banks to delay payments on a dollar loan, given expectations of a hit to its business because of the Covid-19 pandemic. But bankers told GlobalCapital Asia this week that the state-owned company has enough cash to make the payments, with the syndicate team set to reject its deferral request. Pan Yue reports.

    • 14 May 2020
  • Synlab boosts bonds after lacklustre loan swap

    Synlab’s multi-part liability management exercise has ended up leaning more heavily on the bond market than on loans, with the new FRN leg boosted from €400m to €850m, more than compensating for limited take-up from lenders asked to switch into a longer dated loan. But it should be little surprise that the bond went better, as it paid investors an extra 75bp for a near-identical product.

    • 13 May 2020
  • The loan market proved its worth

    The coronavirus pandemic, in terms of the financial markets has had its winners as well as its losers. The loan market, after years of decline as borrowers sought better terms in bond markets, has shown its worth in times of trouble by being able to offer liquidity lifelines to companies left in dire need of the stuff when other markets could not provide it.

    • 12 May 2020
  • Leoch returns for $100m refi

    Chinese battery maker Leoch International Technology has returned to the loan market for a $100m refinancing.

    • 12 May 2020
  • MIE misses interest payment on oil woes, triggers cross-defaults

    Chinese oil and gas company MIE Holdings Corp has missed interest payment on a dollar bond during the grace period, triggering cross-defaults on its loan facilities. The firm has been hit hard by tumbling oil prices this year, putting pressure on its liquidity.

    • 12 May 2020
  • Sponsors mull cost of turning to state support schemes

    With leveraged companies largely shut out of central bank bond buying and price support schemes, sponsors are mulling government-backed lending schemes in several European countries, as they seek to show other creditors that they have abundant access to liquidity. But the schemes often come with strings attached, which could do nearly as much damage to a sponsor's investment thesis as a restructuring.

    • 11 May 2020
  • Indofood invites banks to $2bn acquisition loan

    Indofood CBP Sukses Makmur has sent out a request for proposals for a loan to back its acquisition of instant noodle maker Pinehill Company.

    • 11 May 2020
  • How Telefónica, Liberty Global structured a crisis-proof deal in a crisis

    The merger of the UK’s largest mobile phone operator, O2, with cable company Virgin Media, agreed on Thursday, will generate a £6bn financing need which the parties want to complete before the deal closes, expected to be in 2021 — and later on, it could lead to an IPO, say sources close to the deal.

    • 07 May 2020
  • SJM seeks covenant waivers for HK$25bn loan

    Macau casino operator SJM Holdings is in talks with lenders for covenant waivers on a HK$25bn ($3.2bn) facility, as it faces delays over opening a new resort in Asia’s gambling hub.

    • 07 May 2020
  • HNA seeks another payment extension on $4bn loan

    Chinese conglomerate HNA Group has missed yet another payment, this time of $750m, on a loan it raised in 2016 to acquire Ingram Micro, a US information technology and products distributor.

    • 07 May 2020
  • Crisis Talk — with virology expert professor Peter Openshaw on why post-Covid offices must adapt

    As Western societies begin to contemplate life returning to some semblance of normality, the financial industry is working out how best to balance the understandable desire to get back to how things were before the crisis with the very real threat of a new and more deadly wave of coronavirus brought on by a mass-return to offices. GlobalCapital’s Silas Brown spoke with Peter Openshaw, a specialist in immunology and virology and professor of experimental medicine at Imperial College, about the transmission of Covid-19 and how banks, investors and companies can reduce the risk of infection.

    • 06 May 2020
  • Melco Resorts raises HK$14.85bn for refi

    Melco Resorts & Entertainment has closed a HK$14.85bn ($1.9bn) revolving credit facility to refinance an old borrowing maturing this June.

    • 06 May 2020
  • Borrowers vs banks: the battle continues

    Loans bankers and borrowers are increasingly spending weeks, if not months, negotiating over pricing, as the gap between their expectations grows wider amid Covid-19 disruptions.

    • 06 May 2020
  • Amret closes $50m debut borrowing

    Cambodian micro finance company Amret has closed its debut loan after attracting six participants during syndication.

    • 06 May 2020
  • Sponsors set to turn to direct lenders to fund buyouts

    Direct lending funds are likely to be the best choice for sponsors looking to fund buyouts this summer, with investment banks still sitting on substantial bridge books, and simplicity and certainty of execution being the top priorities.

    • 05 May 2020
  • BNPP trumpets DCM leadership but divi ban hits hard

    BNP Paribas blamed European authorities’ restrictions on 2019 dividend payments for losing it €184m in its equities business, when it released its first quarter results on Tuesday. However, in debt capital markets and fixed income, currencies and commodities (FICC) it was a more positive picture, as the bank took advantage of a surge in debt origination and electronic trading.

    • 05 May 2020
  • Robert Bosch breaks ice in Schuldschein market

    Robert Bosch launched Schuldscheine with tenors varying between two and 20 years on Tuesday. The German car parts supplier is looking to raise at least €500m in a market all but shut since the coronavirus pandemic reached Europe. Participants hope this launch will prompt other borrowers to follow suit.

    • 05 May 2020
  • Telefonica-Liberty Global talks raise hopes of M&A normalisation

    Prospects are rising of a return to normal merger and acquisition activity, despite the continued grip of the Covid-19 pandemic. Telefónica, the Spanish telecoms group, has confirmed it is in talks about combining its UK mobile business O2 with Virgin Media, the quad play telecoms firm owned by Liberty Global.

    • 04 May 2020
  • Chenavari’s Toro fund unwinds loan warehouse

    Chenavari Investment Management’s Toro Fund said in a recent update to investors that it was unwinding its leveraged loan warehouse, in contrast to other CLO fund managers and equity investors that have pushed out deals and begun to reopen the market.

    • 04 May 2020
  • Synlab seeks maturity extension after 500k Covid tests

    Synlab, a medical testing firm owned by Cinven, is looking to push out its debt profile, amending and exchanging bonds and loans due 2022 to a loan with a 2024 maturity. It is the first flicker of life in the European primary leveraged loan market since the coronavirus crisis hit.

    • 04 May 2020
  • HSBC pushes on with mid-market plan through Callaghan hire

    Jacques Callaghan, formerly of Macquarie Capital, has joined HSBC as head of UK mid-market M&A, concentrating on a wedge of companies that are important to the bank’s new strategy.

    • 04 May 2020
  • Luxshare launches $500m loan into general

    Luxshare Precision, a Chinese designer of cable assemblies, has launched a $500m loan into syndication, hiking up the margin on offer due to changing market conditions caused by Covid-19.

    • 04 May 2020
  • Norwegian Air Shuttle nears state support as rescue package given go-ahead

    Norwegian Air Shuttle is close to receiving vital loan guarantees from Norway, as shareholders voted through a near $1bn-equivalent debt to equity swap from bondholders and aircraft lessors.

    • 03 May 2020
  • ECB survey gives first direct read on virus credit squeeze

    Some banks in the eurozone tightened their lending standards in the first quarter of 2020 as the coronavirus pandemic spread across the globe, even as loan demand surged, according to a European Central Bank survey that provides the first systematic evidence on the subject.

    • 01 May 2020