Leveraged Loans - All Articles

  • PE-backed GaleMed turns to loan market

    Taiwan’s GaleMed Corp is tapping the loan market for a $70m-equivalent dual-currency deal for refinancing debt and dividend recapitalisation.

    • 29 Jan 2021
  • Klöckner Pentaplast takes ESG ratchet to dollar mart

    Plastics packaging firm Klöckner Pentaplast (KP) has included an ESG margin ratchet in the loan leg of a refinancing, the first time this has been added to a dollar-denominated loan, though the structure is becoming increasingly common in euros.

    • 28 Jan 2021
  • Biogroup bond debut shines in unsecured

    Biogroup’s debut in the high yield bond market has become one of the tightest ever triple-C rated issues, validating the former loan-only company’s decision to turn to public markets to add subordination to the refinancing of its capital structure.

    • 28 Jan 2021
  • Will sustainability-linked debt prosper in private credit?

    European and US direct lending’s insatiable rise to relevance has so far not brought with it a push towards sustainable finance. But this year may be different, as certain private debt funds are setting out ESG blueprints for others to follow.

    • 28 Jan 2021
  • KKR picks partner for European private credit team

    KKR has appointed a new partner to help manage its private credit business.

    • 27 Jan 2021
  • CSAM hires direct lending origination head following Qatar tie-up

    Credit Suisse Asset Management (CSAM) has hired a head of origination in its direct lending group, following the firm's multi-billion push into private credit in partnership with Qatar Investment Authority.

    • 27 Jan 2021
  • Smurfit Kappa seals five green promises with loan

    Smurfit Kappa, the Irish paper and cardboard packaging company, has signed its first sustainability-linked loan for €1.35bn, at the same time as setting new targets to reduce its carbon footprint and water use and employ more women.

    • 27 Jan 2021
  • TUI rights offer attracts high take-up from shareholders

    Anglo-German travel and tourism group TUI has completed its heavily discounted €544m rights issue, which is part of a bailout of the company.

    • 27 Jan 2021
  • ION Analytics tries again

    ION Analytics has returned to the market with a $1.9bn-equivalent loan package to fund the combination of Dealogic with Acuris. It tried to sell this deal before the US presidential election but pulled it in the face of weakening sentiment and concerns over political stability.

    • 27 Jan 2021
  • Sun Hung Kai builds HK$5bn club loan

    Hong Kong-listed Sun Hung Kai Properties has returned to the loan market for a HK$5bn ($645m) club deal. It is testing lender appetite at a time of growing selectiveness around the sector.

    • 27 Jan 2021
  • Fosun slices pricing on loan return

    Chinese conglomerate Fosun International has cut pricing on a new $560m-equivalent multi-currency loan, as it counts on banks’ hunger to lend amid slow deal flow to push its transaction past the finish line.

    • 27 Jan 2021
  • BlackRock’s Fink backs net zero, leaves responsibility to clients

    BlackRock wants to move a long way towards catching up with leading investors in its response to climate change, its CEO Larry Fink indicated in his annual letter to chief executives on Tuesday. BlackRock stopped short of setting a net zero carbon emissions target for its $8.7tr of assets under management, or committing to swift decarbonisation. But it did publish a ‘net zero commitment’ saying it would “support the goal of net zero emissions by 2050 or sooner”.

    • 26 Jan 2021
  • Will direct lenders prove to be wolves in sheep’s clothing?

    Direct lenders and debt funds have always pitched themselves as being more suitable partners for businesses than banks, bondholders, or other institutional lenders. When the going gets tough, they can be quicker to waive covenants and offer new money than a less concentrated creditor group. But this also puts them in pole position to take the keys from a business should things go wrong — which we may see happen this year.

    • 26 Jan 2021
  • Stabilus launches SSD as autos return

    German car part maker Stabilus began marketing a Schuldschein on Monday, as many consider whether the automotive sector should be back on investors' buy lists.

    • 25 Jan 2021
  • Klöckner Pentaplast takes ESG margin route for refi loan

    Plastics packaging firm Klöckner Pentaplast has included an ESG margin ratchet in the loan leg of its refinancing, which was announced on Monday, a feature set to become increasingly common in European leveraged credit this year. Unlike previous deals with this structure, KP will take this structure to the dollar market, as well as euros.

    • 25 Jan 2021
  • G.Network logs into £220m loan

    G.Network Communications, the London-centric broadband provider, has signed loans totalling £229m, with the company planning a £1bn investment programme into the UK capital.

    • 25 Jan 2021
  • Taiwanese banks ditch IB-led loans over default fears, MoF guidance

    Taiwanese banks are increasingly asking their loans teams to avoid participating in deals led by global investment banks, in line with guidance given by the finance ministry last year and over fears of being burnt again by possible defaults.

    • 25 Jan 2021
  • Ex-Morgan Stanley banker joins SC Lowy

    Hong-Kong-headquartered bank SC Lowy has hired Jonathan Graber for its trading team in London.

    • 22 Jan 2021
  • InfraVia injects SDG into equity bridge

    Infravia Capital Partners, the French private equity firm, has amended an equity bridge facility to make it align with the UN’s Sustainable Development Goals. Margins are tied to the ESG performance of its fund’s investments, following the lead of EQT and Eurazeo.

    • 22 Jan 2021
  • Altitude Infrastructure gets €266m loan funding

    Altitude Infrastructure, the French telecoms company, has signed a €266m credit facility, which it will use for two fibre optic networks.

    • 22 Jan 2021
  • Duo provides green loan for Cityplaza One acquisition

    Standard Chartered and United Overseas Bank have provided a HK$5.29bn ($682m) green loan to support a Gaw Capital Partners-led consortium’s acquisition of Cityplaza One.

    • 22 Jan 2021
  • Santander pins corporate finance strategy on ESG

    Santander reckons it can harness the power of hydrogen to boost its standing in corporate and investment banking, building on its ESG credentials in similar way to how rivals built supremacy during the internet boom, writes David Rothnie.

    • 21 Jan 2021
  • RBC promotes from within as Uden retires

    RBC Capital Markets has reorganised its European equity capital markets and corporate broking business following the decision of Darrell Uden to step down at the end of this month.

    • 21 Jan 2021
  • Perfect chemistry as investors cheer Ineos’s €4.6bn BP integration package

    Investors have enthusiastically backed a €4.6bn financing package for Ineos Quattro, funding the integration of BP’s aromatics and acetyls business into the chemicals conglomerate. Strong demand allowed the company to raise more secured debt than expected, cutting funding costs, and strip out a bank-targeted term loan ‘A’ in favour of a bigger, cheaper, institutional term loan ‘B’.

    • 21 Jan 2021
  • Energy firms facing insolvency bank on ABS

    Securitization is emerging as the last resort for some US oil and gas companies seeking funding. Banks are deserting the equity and reserve-based lending markets they rely upon. But investors have proved eager to deploy capital in well-structured shale deals that can yield as much as 6%, meaning the ABS market may provide a lifeline for the struggling energy firms, writes Jennifer Kang.

    • 21 Jan 2021
  • Mphasis to set new record for LBO loan size from India

    Asia’s loans bankers are salivating over the prospects of working on the largest ever leveraged buyout loan from India. Blackstone is looking to exit from IT services company Mphasis in a deal that has seen plenty of interest from other private equity firms. Pan Yue reports.

    • 21 Jan 2021
  • Flender financing to set ESG precedent for lagging levfin market

    Financing for Carlyle’s purchase of Flender, a turbine gearbox manufacturer, could set a precedent for leveraged finance, which has lagged behind other debt markets in adopting instruments linked to environmental, social and governance conditions. Other issuers are sure to follow, but the market may have to solve other challenges before this can become a market standard.

    • 20 Jan 2021
  • Biogroup plans full refi after acquisition spree

    Biogroup LCD is planning to refinance its full capital structure and tap the bond market for the first time after a string of recent debt-funded acquisitions. The French lab testing company was a notable casualty of the first wave of Covid-induced market chaos, forced to postpone its plans for a loan in March and then having to pay up when it returned for the financing in June.

    • 20 Jan 2021
  • Lenders rush to Grab loan, size gets boost to $1.75bn

    Singaporean ride-hailing company Grab Holdings has boosted the size of its term loan B after receiving a strong response from the market, setting the stage for more Asian start-up firms to head to the US for financing.

    • 20 Jan 2021
  • The wrong time to restrict leveraged lending

    The ECB's attempts to curb leveraged lending are damaging, inconsistent, and come at exactly the wrong time

    • 19 Jan 2021
  • Provident Square links loan pricing to occupancy rate

    Provident Square, a shopping mall in the North Point area in Hong Kong, is seeking a HK$1.4bn ($180m) loan for refinancing.

    • 19 Jan 2021
  • Afme proposes recapping with equity-like

    Many EU companies could do with capital beyond debt, according to the Association for Financial Markets in Europe (Afme). The trade body, in a report it produced alongside PwC, suggests encouraging the use of equity-adjacent products to fill balance sheet gaps from the coronavirus crisis.

    • 19 Jan 2021
  • Dawn of Schuldschein debuts as TeamViewer launches ESG deal

    German software company TeamViewer launched an inaugural Schuldschein deal on Monday, with margins linked to its ESG performance. Five new borrowers have entered the Schuldschein market so far this year, almost half as many as appeared throughout the whole of 2020.

    • 18 Jan 2021
  • Aedifica debuts in US PPs

    Aedifica, a Belgium-based healthcare property investment company, has launched a US private placement, according to market sources.

    • 18 Jan 2021
  • Two-phase syndication for Greenfields acquisition loan underway

    The senior syndication stage for a $140m-equivalent loan to support TPG and Northstar Group’s acquisition of a majority stake in Japfa’s southeast Asian dairy business is set to close by the end of this week.

    • 18 Jan 2021
  • Trafigura causes stir with debut Schuldschein

    Commodities trading giant Trafigura has launched a Schuldschein which, due to its poor credit profile and high intended yield, is a clear outlier in the market, while some bankers are surprised that such a large company would try to raise such a small loan.

    • 15 Jan 2021
  • Hamburg Airport fails to land Schuldschein

    Hamburg Airport has pulled a Schuldschein transaction with an initial target of €100m, according to several market sources, due to a lack of interest from investors.

    • 15 Jan 2021
  • People news in brief

    Natixis promotes DCM bankers — Powell quits IFAD job — NatWest Markets makes Peberdy, Donaldson and Manwaring's positions permanent

    • 14 Jan 2021
  • UK MD at Goldman joins digital infra investment firm

    Digital Colony, which invests in mobile and internet infrastructure, has hired Latifa Tefridj-Gaillard as head of Europe capital formation.

    • 14 Jan 2021
  • Politics and Covid fail to dent UK fee pool optimism

    Bankers are betting on a strong year for the UK — Europe’s biggest fee pool — but the overlapping concerns of Brexit, Covid-19 and regulation make for an uncertain outlook, writes David Rothnie.

    • 14 Jan 2021
  • Mayr-Melnhof Karton launches debut Schuldschein deal

    Austrian paper and packaging firm Mayr-Melnhof Karton, called MM Karton for short, has launched a Schuldscheine, with an initial target of €300m.

    • 14 Jan 2021
  • First Resources seeks $150m dual-currency loan

    Singapore-listed palm oil company First Resources is tapping the loan market for a $150m-equivalent dual-currency deal.

    • 14 Jan 2021
  • Arbour joins ICG from Palamon Capital

    Intermediate Capital Group, the UK alternative asset manager, has hired Philippe Arbour from Palamon Capital Partner to help further develop its Senior Debt Partners strategy.

    • 12 Jan 2021
  • Kartesia appoints full time head of CSR, ESG

    Specialist private lender Kartesia has appointed a full time head of corporate social responsibility and environmental, social and governance issues.

    • 12 Jan 2021
  • Masan invites banks to $250m loan

    Vietnam’s Masan Group Corp is inviting lenders to join an up to $250m loan to support an investment into one of its subsidiaries.

    • 12 Jan 2021
  • Vingroup returns with $400m loan

    Vingroup Joint Stock Co has launched an up to $400m loan to the market.

    • 12 Jan 2021
  • Sixth Street, Investec close European direct lending funds

    Sixth Street and Investec this week both said they had closed European direct lending funds.

    • 11 Jan 2021
  • Investec launches debut direct lending fund

    Investec has announced the first close of an inaugural direct lending fund targeting Western Europe’s small cap companies, which Investec believes are underserved by banks and other lenders.

    • 11 Jan 2021
  • Ineos Quattro launches funding for BP buyout, consents for new cap stack

    Banks have launched the funding for Ineos’s purchase of BP’s aromatics and acetyls business into syndication, with €2.6bn of new first lien term loan 'B' on offer, plus a package of amendments to Ineos Styrolution’s existing bond and loan debt.

    • 11 Jan 2021
  • Tikehau hires new COO for private debt business

    Alternative asset manager Tikehau Capital has hired a new chief operating officer for its private debt strategy, who will also be responsible for private debt investments in France.

    • 11 Jan 2021
  • Pan Brothers hit with downgrade on looming loan refi pressure

    Indonesian garment company Pan Brothers has been downgraded by Fitch Ratings for the third time in the past three months as a result of refinancing pressure.

    • 11 Jan 2021
  • CP Group mulls bond/loan combo for Tesco Asia debt takeout

    Thai conglomerate Charoen Pokphand Group will likely tap both the bond and loan markets to take out a bridge facility raised last year for the acquisition of retail giant Tesco’s Asia business.

    • 11 Jan 2021
  • Fortune Oil seeks $400m for 2018 deal refi

    Hong Kong-based energy firm Fortune Oil has returned to the loan market. It is seeking $400m-equivalent to refinance an old borrowing sealed in 2018.

    • 11 Jan 2021
  • SMEs face reckoning as lenders flee and ECB boosts bigger rivals

    Europe’s small and medium sized enterprises fear dark days ahead, as treasurers complain of banks withdrawing support and express concerns that central bank bond buying programmes favour the biggest and best capitalised companies. Mike Turner reports.

    • 07 Jan 2021
  • HSBC's Asia ambitions remain after Enns leaves

    HSBC’s aims to boost market share in investment banking and rebalance towards Asia remain intact despite the resignation of one of its most senior lieutenants. But 2021 must be about execution, writes David Rothnie.

    • 07 Jan 2021
  • Pressure builds in strong levfin pipeline

    Bankers are readying a fat pipeline of new primary projects in leveraged finance, which are likely to meet a deep swell of investor demand — with P2Ps, carve-outs, acquisitions and secondary deals all ready to be distributed in the first quarter, thanks to a reviving M&A market in the second half of last year.

    • 07 Jan 2021
  • Carlyle launches sustainable loan for Siemens gearing carve-out

    Bank of America, Deutsche Bank and UniCredit have launched the buyout funding for Carlyle’s €2bn purchase of Flender, a company making wind turbine gearing, from Siemens. On offer is a €1.045bn term loan 'B' in sustainable format, plus a €150m revolver and €125m guarantee facility.

    • 07 Jan 2021
  • Grab turns to US investors for $750m TLB financing

    Singaporean ride-hailing company Grab Holdings has added a dash of excitement to the loan market with plans to raise $750m from a new outing. Pan Yue reports.

    • 07 Jan 2021
  • H&F preps Verisure divi deal after fund switch

    Hellman & Friedman transferred Verisure, the Swedish alarm maker, into its ninth fund before Christmas, and has now launched a combined refinancing, dividend and consent deal to releverage the company. The first part of the package in the market is a €2bn loan deal led by Bank of America, with secured and unsecured bonds to follow.

    • 07 Jan 2021
  • Paperchase set for administration, Permira holds the debt

    UK stationery retailer Paperchase has submitted a notice of intent to appoint administrators, as it struggles to cope with the effects of lockdowns and disruption to Christmas sales.

    • 06 Jan 2021
  • D'Souza extends sponsors brief at MUFG

    MUFG has given Darryl D’Souza a new position under Matteo Ferrario, where he will lead part of the bank's strategy for financial institutions.

    • 06 Jan 2021
  • Leveraged finance mart stuck on starting blocks

    Bankers are readying a fat pipeline of new primary projects in leveraged finance, which are likely to meet a deep swell of investor demand, but the starting gun has yet to fire, with high grade and frequent borrowers setting the tone for now.

    • 05 Jan 2021
  • Entain rejects MGM bid but UK buyout deals mount up

    UK gambling firm Entain, the former GVC Holdings, rejected a buyout bid from MGM on Monday morning, which could have added a second multibillion gaming deal alongside the Caesar’s bid for William Hill. MGM had offered to pay in stock, but regardless, the year is looking bright for debt-funded UK buyouts, with a healthy pipeline building.

    • 04 Jan 2021