Corporate Bonds - Article Archive

  • Hope amid IG bond activity softening

    Though there has been little activity so far this week, corporate bond market participants won’t rule out bond issuance — especially if last year is anything to go by.

  • Punchy deals jostle in high yield crowd

    Investment grade corporate bond issuance is all but becalmed, but the high yield market is bustling with activity, as a wide variety of companies bring deals, including several strategic capital raisings and M&A financings.

  • Porsche sells largest green Schuldschein ever

    Porsche AG, maker of Porsche sports cars, closed a green Schuldschein this week, with pricing and allocation set for Friday. The final size is rumoured to be €1bn, with an order book far exceeding that.

  • Beyond control: Mike Ashley’s brush with the US PP market

    Andrew Hollingworth, a portfolio manager at Holland Advisors and shareholder in Sports Direct, has urged Mike Ashley, the sports retailer’s owner, to pay more attention to corporate governance. But had Hollingworth known about the US private placement market’s experience of dealing with Ashley — in this case over debt owed by one of his other businesses, Newcastle United FC — he might have campaigned for it even more strongly.

  • All stock Upjohn-Mylan merger brings $12bn debt

    Pfizer has agreed to spin off its off-patent drug business Upjohn and merge it with generic drug company Mylan, in an all-share deal that will still see $12bn of debt raised.

  • Sino-Ocean closes $600m bond sale

    Sino-Ocean Group Holding, a Chinese investment company that focuses on the property market, took advantage of the positive backdrop on Monday to seal a $600m bond.

  • Complications loom over £2.5bn Cobham buyout

    Cobham, a UK aerospace and defence supplier, could soon change owners as private equity firm Advent plans to finance its £4bn acquisition with £2.517bn equivalent of interim loans. The latest public-to-private buyout is on shaky ground, jolted by a looming bidding war, possible regulatory intervention and reluctant shareholders.

  • LSEG to try data push through Refinitiv deal

    The London Stock Exchange Group declared on Monday it is interested in buying market data and infrastructure firm Refinitiv for $27bn, a purchase that would give it added clout in data and analytics. Refinitiv’s bonds — notorious in the high yield market for their structure — and LSEG’s shares moved up on the news.

  • Fraport enters the Schuldschein market for more

    Fraport, which operates Frankfurt airport and has stakes in several other airports, has entered the Schuldschein market for a second time this year, with an initial target of €200m.

  • World Bank floats in Hong Kong dollars for the first time since 2009

    The World Bank placed its first Hong Kong dollar deal of its 2019/2020 funding year last week. The supranational chose to link the private placement to the Hibor benchmark, a now little seen structure that was likely the result of a "very specific enquiry", according to one MTN banker away from the deal.

  • Repsol over six times covered, despite softer bond market

    Investors poured orders into the only new issue on Friday, despite a softer backdrop in the corporate bond market. Repsol, a Spanish energy company, was more than six times subscribed for its €750m eight year note.

  • Shandong Hi-Speed goes long with popular dual-trancher

    Chinese provincial government-owned Shandong Hi-Speed Group Co has pushed out its maturity profile with a $1.4bn dual-tranche transaction. It priced the senior perpetual tranche at the same level as some of its bigger state-owned peers, thanks to a six times covered order book.

  • Honghua nails market return for $200m

    Chinese drilling company Honghua Group raised $200m from a rare bond from an industrial company, attracting enough investors to cover the deal by more than six times.

  • People moves in brief

    HSBC’s Doody moves to New York — LCH hires Créd Ag’s Girolami — Mizuho chooses Slavinskiy for EMEA IB

  • DKS floats majority clauses in Schuldschein market

    Deutsche Kreditmarkt-Standards (DKS), a German industry body, held a conference call with Schuldschein participants on Thursday afternoon to discuss restructuring in the Schuldschein market, and whether there is a case for a standardised collective action clause.

  • UBS bolsters activist defence offering in Europe

    Darren Novak, head of activist defence at UBS, has moved from New York to London, with the bank seeing an opportunity to improve its service for European companies seeking to deal with activist investors.

  • EMH Group goes long in US PP mart

    East Midlands Housing Group (EMH), a housing association located in the UK county of Leicestershire, has secured £100m ($124.8m) of long-dated debt from the Pension Insurance Corporation (PIC).

  • Making money in a ‘weird’ market

    With new issue activity in Swiss francs now grinding to its usual summer halt, syndicate managers and investors are bracing themselves for another extension to the lower for longer rates environment.

  • Time for Schuldscheine to grow up

    The Schuldschein market, traditionally a safe and stolid funding product for German companies borrowing from German insurers, has been on a tear of late, with extensive international interest on the buy- and sell-sides, booming issuance volumes, and a procession of digital initiatives to streamline the market. But it has not all been good news.

  • Corporates cram in bond sales ahead of ECB meeting

    The prospect of Thursday’s European Central Bank monetary policy meeting probably caused corporate bond issuers to print earlier in the week. But bankers believe they have not seen the last of the summer supply.

  • Oriflame targets EM accounts amid roadshow for founders' buyout bond

    The Swedish cosmetics company Oriflame is attempting to charm high yield investors with a €775m bond — but left lead Goldman Sachs is also pitching the issue to emerging market-focused accounts, highlighting the company's extensive business in Asia and Turkey. The founding family of the firm will use the bond to refinance bridge facilities which funded their buyout of the company earlier this year.

  • Drax completes bridge refinancing with PPs, ESG debt

    Drax Group, the UK electricity generator, has sold £375m of US private placement debt, alongside a £125m environmental, social and governance facililty to repay a bridge loan used to fund its acquisition of Scottish Power Generation.

  • Vivion preps opco-propco split with bond market debut

    Vivion, a property company formed in September 2018 and controlled by Israeli tycoon Amir Dayan, is preparing its bond market debut. The funds raised will be used to split the business into a property company (propco) and an operating company (opco), pay off acquisition debt for recently purchased hotels, and reorganise its corporate structure.

  • Air Baltic takes €300m book for debut

    Air Baltic, an airline 80% owned by the Latvian government, printed its €200m five year non-call three debut bond on Tuesday from an order book of €300m.

  • HY supply floods in with IG on pause

    With last week's high yield bonds performing well, a range of new deals has been brought to market to take advantage of strong demand. That was a complete contrast to the investment grade market where no new deals were announced on Wednesday.

  • Hanwha goes green for $300m

    Hanwha Energy USA Holdings Corp’s green bond attracted more than $2bn of orders on Tuesday, allowing the borrower to close the $300m trade with no new issue premium.

  • Indonesia volatility poses no challenge for Pertamina

    Indonesian energy company Pertamina snagged $1.5bn from a dual-tranche bond sale, shaking off concerns about the struggling bond market in the country and proving that quality credits can still get deals done.

  • Catalyst Housing returns to shift old stock

    UK housing association Catalyst Housing came back to the sterling corporate bond market on Tuesday with £50m of the £100m it retained from a £250m long dated dual tranche bond issue, which was priced in October 2017. The deal was illustrative of the buoyant conditions for borrowers.

  • Forth Ports signs PP sterling deal

    Forth Ports, the port operator headquartered in Edinburgh, has sold roughly £300m-equivalent of US private placements (PPs).

  • ESIC takes $600m in bond debut

    The Emirates Strategic Investment Corp made its bond market debut on Tuesday, launching a $600m five year sukuk into a six times subscribed order book.

  • Air Baltic guides for five year

    Air Baltic, an airline owned by the Latvian government, has released initial price guidance for its €200m five year non-call three debut bond at 6.75%-7%.

  • EP Infrastructure ditches dual tranche for sevens

    Czech energy distributor EP Infrastructure came to market on Tuesday morning for a seven year Reg S benchmark — its second ever bond. The bond had been announced on Monday as a dual tranche six year and 10 year.

  • MTN investors opt for the ‘familiar’

    A cavalcade of “familiar names” have come to the market over the last week. SSAs, corporates and FIG issuers printed across the euro curve, while a trio of supranationals were also active in emerging market currencies.

  • India positivity feeds Greenko momentum

    Greenko Energy Holdings found ample support for its $950m dual-tranche bond, thanks in part to the duration it offered investors, as well as the positive sentiment surrounding India.

  • Dalian Deta, KWG kick-start new week of bonds

    Chinese local government-owned Dalian Deta Holdings Co has debuted in the international bond market for $300m, while repeat issuer KWG Group priced a tight transaction on Monday.

  • Sirius Minerals bets on $500m bond to fertilise project

    Sirius is trekking the globe marketing a $500m senior secured note that is key to unlocking a $2.5bn revolver and $400m in convertible bonds. The financing will be used for a gigantic fertiliser mine in Yorkshire, UK. The coupon for the bond is expected to hit the double digits, making it one of the highest yielding issues of the year.

  • FedEx delivers its second euro note

    FedEx has returned to the euro market for the second time in 2019. Having issued a €640m 3.3 year back in January, the Baa2/BBB US logistics company printed a €1bn six and 12-year dual-tranche on Monday. After a drop in reverse Yankee issuance last year, the euro market has proven attractive to US issuers this year, with a steady stream of deals through the first half of 2019.