Americas

UK investment firm Melrose will rely on relationship banks for $1.25bn of debt to support its acquisition of Nortek, as the loan market continues to support deals in the wake of the Brexit vote.

Just 22% of Brazilian airline Gol’s bondholders agreed to a distressed debt exchange after several weeks of discussions, with one credit analyst saying that a rally in the real — and thus an upturn in the issuer’s prospects — meant many investors opted not to accept a haircut on their paper.

The result of the UK referendum on EU membership is likely to encourage Japanese triple-A investors to focus more heavily on US CLO paper, said CLO market participants this week.

Argentine pulp and paper company Celulosa Argentina is getting ready to meet international bond investors ahead of a second attempt to issue cross-border debt, according to a pricing supplement filed on Monday.

Dealers will hold an auction to settle credit default swaps referencing Portugal Telecom International Finance, after the International Swaps and Derivatives Association’s (ISDA's) EMEA Determinations Committee ruled that a bankruptcy credit event had been triggered on the contracts

Argentine infrastructure company Compañía Latinoamericana de Infraestructura & Servicios (Clisa) is meeting fixed income investors ahead of a liability management exercise that highlights the stark improvement in the outlook for Argentine companies this year.

Latin American issuers were flying as high as a Leo Messi penalty this week as the Argentine sovereign capped off a remarkable two days of new issue activity for the region with a $2.75bn dual-tranche bond on Thursday, reaffirming the belief that Lat Am would see little or no effect from the Brexit vote.

The Dominican Republic and Brazilian meatpacker Marfrig jumped on favourable technicals in Latin American bond markets this week to tap, above par, bonds issued earlier this year.

A procession of blue-chip corporate and Yankee names re-opened the dollar market with jumbo deals this week as investors displayed a strong appetite for US high-grade paper.

Lloyds reopened the dollar market for European borrowers for the first time since the UK’s vote to leave the European Union last week, surprising market participants who thought the country’s banks would need longer to recover from 'Brexit'.

Two of the five US subsidiaries of European banks under the Federal Reserve’s supervision failed the regulator’s stress test this week, despite having some of the highest common equity tier one ratios under the Fed’s worst case scenario. The banks, mostly with US headquarters, that passed largely plan to increase dividends and buybacks

Brazilian meatpacker Marfrig clinched a drive-by bond reopening on Wednesday to notch up another success in its proactive liability management programme, raising $250m of seven year bonds that it will use to buy back existing debt.