Rare PIK toggle emerges, but volumes still low as second lien grows

McGraw-Hill Education launched a new payment-in-kind (PIK) toggle high yield bond on Wednesday, as part of a bigger refinancing package. Once an indicator of peaking credit conditions, PIK toggle deals have become increasingly rare as borrowers head to cheaper and more flexible second lien loans.

  • By David Bell
  • 06 Dec 2017

McGraw-Hill is looking to raise $250m with a privately placed PIK toggle bond, which has a five year tenor and a one year non-call period. Credit Suisse and Jefferies are leading the sale, with the notes expected to be priced on Thursday. 

The borrower is selling ...

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Bookrunners of European Leveraged Loans

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Credit Agricole CIB 5,236.90 23 6.33%
2 Goldman Sachs 5,129.09 18 6.20%
3 Barclays 5,053.31 13 6.11%
4 BNP Paribas 4,910.75 20 5.93%
5 UniCredit 4,867.28 25 5.88%

Bookrunners of European HY Bonds

Rank Lead Manager Amount €m No of issues Share %
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1 JPMorgan 2,035.22 21 8.02%
2 BNP Paribas 2,008.60 22 7.92%
3 Goldman Sachs 1,563.07 16 6.16%
4 Credit Suisse 1,458.00 14 5.75%
5 Morgan Stanley 1,375.83 10 5.42%

Bookrunners of Dollar Denominated HY Bonds

Rank Lead Manager Amount $m No of issues Share %
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  • Today
1 JPMorgan 8,910.52 68 9.56%
2 Citi 6,715.07 55 7.20%
3 Bank of America Merrill Lynch 6,615.98 61 7.10%
4 Barclays 6,303.47 46 6.76%
5 Credit Suisse 6,011.71 44 6.45%