High Yield - All Articles

  • Green CSPP, digital banks and negative rates, UK finance after Brexit

    This week in Keeping Tabs: how the European Central Bank could decarbonise its corporate bond book, how digital banks would suffer if the Bank of England goes negative, and what UK financial services policy could look like after Brexit.

    • 23 Oct 2020
  • China issuers sneak into closing bond window

    A host of Chinese issuers found one of the last windows to sell bonds on Thursday ahead of the US presidential elections at the beginning of November and a public holiday in Hong Kong early next week.

    • 23 Oct 2020
  • Permira splashes cash on Lowell rescue ahead of 2021 NPL splurge

    Permira opted to rescue its debt purchasing portfolio company Lowell from the restructuring that many thought was imminent, with the largest slug of equity support any sponsor has injected in Europe since the coronavirus pandemic began. Covid-19 has crushed cashflows for some debt purchasers, but next year should be a bumper year for NPL buying — for those firms with cash to do so, writes Owen Sanderson.

    • 22 Oct 2020
  • eBay Classifieds underlines strength of final market window

    The €2.6bn financing for Adevinta’s purchase of eBay Classifieds looks set to be a blowout success, with sharp tightening across all tranches underlining the bid for quality credits enduring limited pandemic impact. The deal’s double-B rating helps attract rating-sensitive investors who have seen their portfolios pummelled this year by Covid-related downgrades.

    • 22 Oct 2020
  • Permira digs deep to recap Lowell as NPL expectations build

    Permira and partners have injected £600m of equity into their debt collector portfolio company Lowell as part of a £2.2bn recapitalisation and refinancing effort for the troubled company, which saw its bonds heavily shorted and was widely expected to restructure its liabilities this year. The contribution is the largest equity injection from a sponsor in EMEA since the coronavirus pandemic began, and reflects what Lowell's management sees as a historic opportunity to buy NPL portfolios in the months ahead.

    • 21 Oct 2020
  • ReNew Power uses tried and tested structure for $325m outing

    ReNew Power, the Indian renewable energy giant, brought a $325m green bond to the market on Tuesday. It offered investors a rare opportunity to buy a high yielding deal from the country, despite using a fairly unusual structure for its transaction.

    • 21 Oct 2020
  • Getlink offers green bond refi after waiving term loan covenants

    Getlink, the company that operates the Channel Tunnel, is preparing a €700m high yield green bond to refinance its 2023 bonds and raise cash for capex, including finishing off a landmark electricity connection between the UK and France. The refi comes after it negotiated waivers on the covenants in its term loan to deal with the impact of the pandemic.

    • 20 Oct 2020
  • Goldman preps rare royalty-backed bond for Delek

    Goldman Sachs is marketing a new high yield bond for Delek Energy, backed by the royalty payments to come from the Leviathan gas field off the coast of Israel. The financing is effectively super senior to a $2.25bn bond issued in the summer, and ekes out extra debt capacity, borrowing financial technology common in the US shale industry and applying it to a new, Israeli context.

    • 19 Oct 2020
  • Closing primary window prompts leveraged credit rush

    Leveraged companies or sponsors seeking financing are moving quickly to fund in the immediate aftermath of the November 3 US election. Monday morning saw more than €3bn-equivalent of new supply across high yield bonds and loans announced, across six separate issuers.

    • 19 Oct 2020
  • MUFG hires levfin banker to lead capital markets

    JP Morgan's Raj Kapadia has joined MUFG as international head of capital markets, as the firm increases its leveraged finance focus. It has also set up a new group to advise clients at the C-suite level on market and macroeconomic developments, led by Tom Joyce, a hire from Deutsche Bank.

    • 16 Oct 2020
  • Indika fires up $450m bond comeback

    Indonesia coal producer Indika Energy was back in the debt market on Thursday with a $450m bond.

    • 16 Oct 2020
  • Bond bonanza in Asia as corporates go for dollars

    Asia’s dollar bond market has been swamped with new deals this week. Thursday was no different, with corporate borrowers from Greater China alone raising just over $3bn between them.

    • 16 Oct 2020
  • HY welcomes new packaging firm ditching PP debt

    Canpack, a Poland-based packaging company, made its debut in the euro and dollar high yield market this week, shaking off the constraints of its private placement-based capital structure and preparing for expansion in the US.

    • 15 Oct 2020
  • Doorstep lender IPF seeks easier covenants

    International Personal Finance, a UK-listed doorstep lender, asked bondholders to ease covenant limits as part of a package of measures to push out its maturities and manage the impact of the Covid-19 crisis on its funding.

    • 15 Oct 2020
  • £14bn book firms up Rolls-Royce rescue plan

    The bond piece of Rolls Royce’s £5bn Covid-19 rescue plan was a storming success this week. The issue doubled in size on the back of a combined book of £14bn, showing the firm still has excellent access to private sector liquidity — a strong message as Rolls turns to shareholders for a £2bn rights issue.

    • 15 Oct 2020
  • SMC gives investors a break from China bonds

    SMC Global Power Holdings Corp was one of the few Asian issuers outside of China to turn to the dollar market this week. The Philippine borrower attracted ample investor support, allowing it to raise more money than it had first planned.

    • 15 Oct 2020
  • Greater China bond issuers rush to dollar market

    Four bond issuers from Greater China followed the Chinese ministry of finance into the dollar market on Wednesday, snapping up $1.4bn between them.

    • 15 Oct 2020
  • M&A banker Le Milon jumps to Barclays

    Barclays has hired Gauthier Le Milon as head of M&A for France, Belgium and Luxembourg.

    • 14 Oct 2020
  • Putting the 'K' in capital markets

    The coronavirus crisis will continue to lead to divergence in economic fortunes, and that will play out in European capital markets as well.

    • 13 Oct 2020
  • State aid helps CMA sail through pandemic refi

    For CMA CGM, a French shipping company, the pandemic came in the nick of time. The group was struggling with debt maturities and dwindling liquidity in late 2019, but abundant state aid funding has allowed it to shore up its balance sheet return to market this week to refinance its 2021s.

    • 13 Oct 2020
  • India's JSW pays up for bond deal

    JSW Steel sold a $500m bond on Monday, but the issuer paid some 30bp of premium to close the trade.

    • 13 Oct 2020
  • Hands on my property! China HY issuers tap dollars

    Three high yield Chinese property issuers turned to the offshore bond market on Monday, raising $950m between them.

    • 13 Oct 2020
  • New packaging firm joins HY universe to ditch PP debt

    Canpack, a Poland-based packaging company, is making its debut in the euro and dollar high yield market this week, as it seeks to shake off the constraints of its private placement-based capital structure and prepare for expansion in the US.

    • 12 Oct 2020
  • Jaguar Land Rover returns after Covid-19 hiatus

    Jaguar Land Rover, whose February bond issue was one of the first casualties of the coronavirus pandemic in the capital markets, has brought its first bond issue since, strengthening bond terms with a ‘springing lien’ protecting investors against future priming debt.

    • 08 Oct 2020
  • Unrated Dürr guides market towards double-B pricing

    Dürr, the unrated German mechanical and plant engineering firm, is guiding investors on its final day of marketing towards it issuing a €250m bond with a yield aligned to issuers in the double-B ratings bracket.

    • 08 Oct 2020
  • Agile prices $300m bond

    Chinese property company Agile Group Holdings raised $300m from its Wednesday bond sale, but found less investor support than excepted.

    • 08 Oct 2020
  • Angels stop falling for autumn

    European credit markets recorded no fallen angels in September — the first month of the Covid crisis that this has occurred, according to credit strategists at Bank of America — and few corporates are now at immediate risk of a slide out of investment grade.

    • 07 Oct 2020
  • Rolls-Royce readies bond leg of rescue package

    Rolls-Royce started marketing the bond leg of a multi-product recapitalisation and refinancing package on Monday, preparing an offering of more than £1bn-equivalent across three currencies.

    • 06 Oct 2020
  • Meet the Platform: EU green finance watchdog

    The European Union’s formation of its Platform on Sustainable Finance last week marks a new phase in responsible investing. Over the past four years or so, the most influential thinkers in the market, such as the Principles for Responsible Investing, have been quietly moving back to an older interpretation of what RI means: considering the effects of investment choices on others.

    • 05 Oct 2020
  • Issa no problem: Asda buyout vaults brothers to top of levfin borrower table

    Friday’s confirmation that the Issa brothers, backed by TDR Capital, had won the auction for UK supermarket Asda, catapulted them into the super league of borrowers in European leveraged credit — the handful of entrepreneurs whose appetite for debt surpasses market appetite to lend to a single capital structure.

    • 05 Oct 2020
  • Alam Sutera hit with double downgrade

    Indonesian property company Alam Sutera’s move to kick off an exchange offer last week to stave off pressing financial concerns was met with ratings downgrades from two of the three global ratings agencies.

    • 05 Oct 2020