Leveraged Loans - All Articles

  • Leveraged loan liquidity improves as euro market matures

    Leveraged loan liquidity in the European market has improved this year, with two-way flows resuming rapidly after the spring nadir of the Covid-19 crisis, and sufficient market depth to shift large portfolios. CLO managers are taking advantage, speeding up their time to market and time to ramp deals.

    • 30 Sep 2020
  • Cavendish hires ex-Liberum M&A head Vuori

    Karri Vuori has joined UK mid-market M&A firm Cavendish Corporate Finance as a partner.

    • 30 Sep 2020
  • Lippo in talks with banks for acquisition loan

    Lippo Malls Indonesia Retail Trust is in discussions with banks for a S$120m ($87m) loan that will support its acquisition of shopping malls in Indonesia.

    • 30 Sep 2020
  • CLBILS opens to sponsor-owned firms but will they use it?

    Technical changes to the UK government’s large business support scheme open the way for private equity-owned firms to draw on the facility, but limits on dividends and new indebtedness may still discourage sponsors from using the scheme.

    • 29 Sep 2020
  • Caesars Entertainment lines up debt and equity for £2.9bn William Hill buy

    Caesars Entertainment, the US casino operator, is in advanced talks to buy UK gambling company William Hill for £2.9bn in cash. The deal will be financed with an equity raising by Caesars of about $1.7bn and a new $2bn non-recourse loan, secured on William Hill's non-US assets. It may be the start of a cascade of M&A.

    • 28 Sep 2020
  • Minth wraps up $200m debut loan

    China’s Minth Group, an auto parts company, has closed its debut loan at a bigger size of $200m.

    • 25 Sep 2020
  • SWFs hot for direct lending as recession strikes Europe

    Sovereign wealth funds from Abu Dhabi and Qatar have started to take ownership positions in new direct lending platforms in Europe and the US. But as Western economies plough into a deep recession, while rival investors still sit on barrels of dry powder, the wealth funds' decision to push into middle market credit now is surprising.

    • 24 Sep 2020
  • US big beasts dominate UK broking with different styles

    JP Morgan and Morgan Stanley’s positions at the top of the UK corporate broking rankings have undoubtedly helped their equity capital markets businesses, but Goldman Sachs stands out for its disruptive approach, writes David Rothnie.

    • 24 Sep 2020
  • Sponsors set to plug funding gap with PIKs as valuations soar

    Payment in kind notes and preference shares will likely play an increased role in new leveraged buyout structures, as sponsors seek to bridge the gap to ever more stretched equity valuations against a backdrop of depressed earnings.

    • 23 Sep 2020
  • Iosco warns of regulatory action over DCM mandate pressure

    Banks may be using their lending relationships with companies to press them into granting bond mandates, the International Organisation of Securities Commissions has warned. This follows the UK Financial Conduct Authority's remarks about similar pressure for equity mandates in April.

    • 23 Sep 2020
  • ‘Society benefits from short sellers’ — Gabriel Grego, CIO of Quintessential Capital

    Gabriel Grego, managing partner and chief investment officer at Quintessential Capital, is known among investors for his devastating critiques of fraudulent companies. A former paratrooper in the Israeli Defence Force, Grego is on what he sees as a moral crusade to sniff out corporate corruption. He is adamant, he tells GlobalCapital, that activist short selling is a force for good in financial markets — and society as a whole.

    • 23 Sep 2020
  • Barings pairs up with Mubadala to target Europe’s mid-market

    Barings is partnering up with Mubadala, the Abu Dhabi sovereign wealth fund, to provide $3.5bn of direct lending to mid-market companies in Europe.

    • 22 Sep 2020
  • New roles for Marsh, Verri at Goldman

    Goldman Sachs has given new titles to leaders in its credit finance, investment grade capital markets and equity capital markets businesses.

    • 22 Sep 2020
  • Bain hires ESG head with energy background

    Bain Capital has hired a new global head of ESG with extensive experience of oil and gas investments.

    • 22 Sep 2020
  • Glenmark makes rare appearance for $175m loan

    India’s Glenmark Pharmaceuticals has returned to the loan market after an absence of more than 10 years. It is seeking a $175m deal.

    • 22 Sep 2020
  • Goldman promotes Sorrell in M&A shuffle

    Goldman Sachs has named new global M&A bosses, with the incumbents moving to become chairs of the business.

    • 21 Sep 2020
  • Pharma is ‘rising star’ in SSDs

    German hospital operator Asklepios Kliniken launched a Schuldschein on Monday with an initial target of €200m. Investors have doubled down on their interest in pharmaceutical firms this year and throughout the pandemic, prompting a substantial increase in the market’s exposure to the sector.

    • 21 Sep 2020
  • MasMovil preps bond leg of LBO takeout

    Spanish telecoms group MasMovil is preparing a €720m bond, the second part of the financing for its take-private by Cinven, KKR and Providence Private Equity. Most of the €2.9bn financing came through a loan issue, allocated in July, with the bonds readied following shareholder acceptance for the offer last week.

    • 21 Sep 2020
  • Pimco names new head of European private credit

    Global investment firm Pimco has hired a new portfolio manager and managing director, who will serve as head of private credit in Europe. With this hire, Pimco is looking to bolster its special situations business in Europe.

    • 18 Sep 2020
  • Credit Suisse launches private credit venture

    Credit Suisse has teamed up with its biggest shareholder to launch a private credit lending platform, bringing to fruition a plan that been beset by delays and high profile departures.

    • 17 Sep 2020
  • People moves in brief — September 17, 2020

    García and Gutman given new roles at Goldman — Mizuho hires in convertible bonds — Smida and Coudray handed coverage leadership at Natixis

    • 17 Sep 2020
  • RBC looks for another lift after 10 year build

    RBC Capital Markets’ expansion in European investment banking came in the aftermath of the global financial crisis. A decade on, the coronavirus pandemic has presented it with a very different set of challenges.

    • 17 Sep 2020
  • Technicolor completes €330m recap

    French visual effects and digital services company Technicolor has finished a €330m recapitalisation as part of its efforts to exit from bankruptcy proceedings.

    • 17 Sep 2020
  • SSD bankers push back against troubled borrowers

    Schuldschein arranging banks have long claimed to be the market's gatekeepers as far as borrowers looking for access are concerned, rejecting lower quality credits to keep the standard high. As the market expanded in recent years and a richer variety of companies borrowed from it, this became a less convincing claim. But as the coronavirus pandemic rocks Europe, Schuldschein bankers say they have declined several requests from companies from risky sectors.

    • 17 Sep 2020
  • HKBN connects with banks for HK$5bn refinancing

    Hong Kong Broadband Network is enticing banks to a HK$5bn ($645m) loan by offering them a juicier margin than previously.

    • 17 Sep 2020
  • Farrer Park raises Singapore’s first healthcare-linked green loan

    Singapore’s Farrer Park Co has become the latest company from Asia to tap the green loan market, raising a S$200m ($147m) facility from United Overseas Bank.

    • 17 Sep 2020
  • Euro CLOs' most sold loan is Swissport

    Swissport has been by far the most sold asset in European CLO portfolios since March, with €384m out of a €900m facility traded, according to trustee reports and Bank of America research. Managers exited the loan at an average price of 74. In an agreement reached two weeks ago, all secured debt will convert to equity, with unsecured debt extinguished.

    • 17 Sep 2020
  • ‘We are at a historic crossroads': Sir Ronald Cohen calls for impact-weighted accounts

    Sir Ronald Cohen, the venture capitalist who chairs the Global Steering Group for Impact Investment, on Tuesday called on governments to mandate companies to publish impact-weighted accounts.

    • 15 Sep 2020
  • GardaWorld makes £3bn hostile bid for G4S as transatlantic buyers swoop

    GardaWorld, the Canadian security service company, has made a hostile £3bn offer for larger UK rival G4S, marking the second major bid for a UK company from a North American firm in less than a week.

    • 15 Sep 2020
  • Droege, Emmerson to lead Goldman’s mid-market M&A team

    Goldman Sachs has appointed Christopher Droege and Chris Emmerson as co-heads of cross markets and sponsor M&A for Europe, the Middle East and Africa.

    • 14 Sep 2020
  • Taiwanese companies gauge interest in loans at low pricing

    Three Taiwanese companies are testing bank appetite for new loans, as slow deal flow this year gives them enough ‘bargaining power’ to raise funds at thin margins and fees.

    • 14 Sep 2020
  • ‘We need Joe Rogan to run the Fed,’ says Hugh Hendry, former CIO of Eclectica AM

    Hugh Hendry, the outspoken founder of former macro hedge fund Eclectica Asset Management, told GlobalCapital he sees no evidence for the re-emergence of global macro as a broad and viable investment strategy. Were volatility to rise again, Hendry says he may well get back into the financial fray but the likelihood of that is vanishingly slim.

    • 11 Sep 2020
  • BNP Paribas backs up Altice Europe’s €4.9bn take-private bid

    BNP Paribas has provided term loans to Altice Europe, whose founder Patrick Drahi has offered to buy €2.5bn of the shares he doesn't already own to take the French telecoms group private.

    • 11 Sep 2020
  • Virgin Media kicks off autumn session with O2 financing for divi

    Virgin Media started the autumn session in European leveraged finance in style with a five part offering to raise the cash for its joint venture with Telefónica’s O2 unit. The deal underscores how far capital markets have come since the dark days of April, when the £30bn ($38.9bn) mega merger was backed by an investment grade loan to insulate the tie-up from the effects of a prolonged downturn in leveraged credit, reports Owen Sanderson.

    • 10 Sep 2020
  • Deutsche IB head ‘vindicated’ as ECM mandates continue

    A year on from the closure of its flow equity trading business, Deutsche Bank’s investment bank is back in a bullish mood after performing well during the first stage of the coronavirus crisis.

    • 10 Sep 2020
  • Priming pioneer Selecta rows back in restructuring

    KKR-owned vending machine company Selecta was one of the first companies to have its owner inject super-senior ‘priming’ debt once the Covid crisis hit, pushing bondholders down the capital structure. But in its restructuring package laid out on Tuesday, KKR reversed this aggressive move, offering a creditor-friendly proposal that sent the bonds up 11 points.

    • 10 Sep 2020
  • Lending after Libor: critical conventions become clearer

    The European syndicated loan market’s transition from Libor to risk-free rates is gathering pace, with market participants starting to offer a much clearer view on the technicalities that a world without Libor will look like for lending.

    • 10 Sep 2020
  • Tui bondholders agree to KfW rescue loan

    German travel company Tui’s bondholders have agreed to suspend limits on the debt the company can incur, opening the door to a rescue loan from KfW and a convertible bond injection from the German government's economic stability fund.

    • 10 Sep 2020
  • Ellington pair anchor Nassau’s new euro CLO shop

    Connecticut-based Nassau Corporate Credit is starting a European CLO operation led by former Ellington portfolio managers Paul Meloche and Hekeani Mathieu. The new business will buy CLO liabilities from third parties as well as running its own CLOs.

    • 09 Sep 2020
  • Pemberton hires Credit Suisse’s former EMEA head of high yield

    Pemberton, the direct lender and asset manager part owned by Legal & General, has appointed Robert Wartchow as a portfolio manager and managing director.

    • 09 Sep 2020
  • Masan in talks with banks for new loan

    Vietnamese food and beverage company Masan Group Corp is in talks with banks for a new borrowing, planning a return to the loan market after seven years.

    • 09 Sep 2020
  • Europcar restructuring puts state-backed loan in firing line

    Europcar will be a test case for the treatment of government-guaranteed loans during a restructuring, as the French car rental company was among the earliest and largest users of the French state’s corporate support scheme.

    • 08 Sep 2020
  • China’s CPI Ronghe, Tian Lun Gas return to loans

    CPI Ronghe Financial Leasing, a subsidiary of Chinese state-owned State Power Investment Corp, has returned to the loan market for $150m.

    • 08 Sep 2020
  • Great Wall drives away with bigger $700m

    Chinese car manufacturer Great Wall Motors has increased the size of its loan to $700m-equivalent.

    • 08 Sep 2020
  • Virgin Media targets total takeout of O2 tie-up debt with £5.7bn financing

    Virgin Media has launched the financing for its £30bn merger with Telefonica’s O2 into the market, aiming to clear the full debt requirement for the blockbuster deal in a single hit. Announced on Monday were benchmark nine year term loan 'Bs' in dollars and euros, but the package also included a term loan 'A' and bonds, typically launched later to reflect their shorter execution time.

    • 07 Sep 2020
  • Kaisa returns for HK$4bn construction loan

    Chinese real estate company Kaisa Group Holdings has launched a HK$4.015bn ($518m) loan to support the construction of a residential building in Hong Kong.

    • 07 Sep 2020
  • Direct lender Alcentra appoints new CEO

    Alcentra, the European subsidiary of BNY Mellon Investment Management, has appointed a new CEO. David Forbes-Nixon will step down to focus on his investment responsibilities.

    • 06 Sep 2020
  • Muzinich promotes Greil Castro to co-head of public markets

    Tatjana Greil Castro has been promoted to co-head of public markets at Muzinich an investor in corporate credit.

    • 04 Sep 2020
  • Swissport debt restructuring thin end of the wedge, say bankers

    Corporate debt bankers say that the comprehensive restructuring and refinancing package agreed between baggage handler Swissport and its creditors is “just the beginning”, with a growing number of companies expected to restructure their debts as the Covid-19 pandemic drags on.

    • 04 Sep 2020
  • NewOcean to extend payment for 2016 loan

    NewOcean Energy Holdings is seeking consent from banks to postpone a principal payment on a $150m loan signed in 2016.

    • 04 Sep 2020
  • Debt funds under scrutiny over redemptions

    Market observers believe that investors in open-ended debt funds need to be disincentivised more than they are at present from scrambling to liquidate their holdings in a market downturn.

    • 03 Sep 2020
  • Schuldschein lenders sniff danger in auto sector

    Once Schuldschein market darlings, auto parts suppliers are beginning to look to lenders like they may be in distress. Some fear a wave of credit restructurings on the horizon, when the market's lean documentation standards are likely to be tested.

    • 03 Sep 2020
  • People moves in brief

    Ex-Barclays banker joins Finsbury to develop equity advisory — Laubjerg hired for natural resources at HSBC — Rousseau leaves Deutsche and joins Citi

    • 03 Sep 2020
  • HSBC wants to take mid-market push beyond UK

    HSBC might be in the middle of a big restructuring, but that isn’t stopping plans to develop mid-market M&A efforts in France, Germany and Asia as well as the UK, writes David Rothnie. The bank has also bolstered its teams covering specific sectors.

    • 03 Sep 2020
  • European corporates face €4tr of maturities by 2026, and market poised to digest it all

    There is about €4tr of European corporate debt due to mature between now and the end of 2025, though syndicate bankers say that the market is primed to cope with bumper issuance levels.

    • 03 Sep 2020
  • Petron seeks consent for loan amendment

    Philippine oil refining and marketing company Petron is seeking lenders’ consent to make amendments to two of its old borrowings, following an initial warning in July.

    • 02 Sep 2020
  • HSBC places three teams under new hire Laubjerg

    HSBC has hired Jan Laubjerg for a new position as global head of natural resources.

    • 02 Sep 2020
  • Antignac moves to lead EU levfin at Credit Suisse

    Credit Suisse has picked Fabien Antignac to be head of leveraged finance for the EU.

    • 02 Sep 2020
  • Internationals return to Schuldschein ranks

    After a period of quiet, the Schuldschein market is creaking back into life. At least four international companies have entered the market in the past week on the hunt for new debt.

    • 01 Sep 2020
  • Deutsche’s Rousseau joins Citi

    Citigroup has beefed up its presence in France by hiring Robin Rousseau, Deutsche Bank’s head of M&A for Europe, the Middle East and Africa.

    • 01 Sep 2020
  • Mobile World dials banks for $100m loan

    Vietnamese mobile device retailer Mobile World Investment Corp has made a rapid return to loans for another $100m.

    • 01 Sep 2020