EG Group fuels pump purchases with private debt

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By Owen Sanderson, Silas Brown
04 Mar 2021

EG Group leant on private markets to raise cash for its purchase of the forecourts business of UK supermarket Asda and a chain of German petrol stations from OMV. The group is raising first and second lien loans, and, on February 26, privately placed a £675m Reg S-only bond.

EG’s Caa2/CCC/CCC-rated second lien is an unusual offering. Investors have been hungrily buying unsecured euro bonds in this rating bracket at tight levels, causing heavy order book oversubscriptions. That is leading bankers to recommend to most issuers that they add subordinated debt through the bond market, rather than ...

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