HY gears up for cyclical test with Renk takeout

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By Owen Sanderson
29 Jun 2020

Specialist transmission manufacturer Renk is marketing a high yield bond offering this week, testing the market’s capacity for companies in cyclical sectors — though marketing for the five year issue leans heavily on the company’s stable military and servicing contracts.

The company is raising €300m of senior secured notes, alongside a €167.5m super senior guarantee facility and €50m revolver, with Goldman Sachs leading the bond deal, which will fund its takeover by Triton Partners, agreed in January.

Though the deal’s leverage is low, at 2.8x, suppliers to cyclical ...

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