Free content

The financing behind the CeramTec buy-out proves that a European credit can command strong support in the transatlantic leveraged loan market. Olivier Holmey finds that a flexible debt structure, a popular name and a popular sector are the perfect ingredients for a blowout LBO.

After an absence of more than two years, Noble Group wasted no time in returning to the US dollar bond market after its rating was returned to a stable outlook in March. But while the dollar remains an important source of funding, the borrower plans to take increasing advantage of Asia’s growing local currency markets. Lorraine Cushnie reports.

Family-owned Schaeffler grew through numerous acquisitions into one of the leading ball bearings manufacturers. But its takeover of a larger-than-planned stake in tyre maker Continental in 2008 gave it a huge debt load to deal with. As Stefanie Linhardt reports, the multi-stage refinancing of this debt has this year included a large — and unusual — payment-in-kind bond.

Russian Railways is playing a key role in the development of the Russian bond market, determining market clearing prices for inflation-linked bonds and helping find new products to satisfy Russia’s growing pension fund investor base. Francesca Young speaks to Pavel Ilichev, deputy head of corporate finance at the company, to find out what is next for Russian Railways.

Syndicated loans have a tried-and-tested formula that has been almost unchanged since they were created in 1568. That is, until this year when Poland’s Polkomtel proved that you can shock lenders and still be successful in the loan market, writes Michael Turner.

Germany’s Continental spent over four years as a high yield credit, although one looked on favourably by investment grade buyers. But now with one triple-B rating, a newly established debt issuance programme and a foothold in the US markets, the tyre company’s drive to return to high grade status is gaining momentum. Nina Flitman finds out how.

Investors have long had access to different ESG analytics when evaluating institutions’ socially and environmentally responsible credentials. But as investors expand their reach and become more sophisticated in using these services, issuers find themselves under greater scrutiny than ever before, finds Craig McGlashan.

Far East Consortium made a stunning bond debut earlier this year with a massively oversubscribed book, following it up a month later with an equally impressive showing by its subsidiary. But despite its recent success with bonds, it is happy to sit back and explore its options, writes Rev Hui.

Dong Energy drew plaudits when it had to improvise with an exchange offering after Standard & Poor’s changed its view on the issuer’s €700m hybrid from 100% equity to 0% in April. Its reputation remains intact — but the experience has permanently altered its approach to the capital markets. Craig McGlashan reports.

Primary issuance in European commercial mortgage securitization has picked up this year, and Gagfah, which has a strong focus on German residential property, is providing much of the fuel for the market, already pricing two CMBS deals this year. The firm sees further mileage in this funding avenue, and plans to refinance more of its debt via CMBS in the months ahead. Hugh Leask reports.

Like many banks in Europe’s periphery, BBVA continues to be dogged by the region’s perennial political and financial crises. But it is also a global brand, with a huge presence in growth markets like Latin America. That strength allowed it to triumph in capital issuance this year, writes Will Caiger-Smith.

The restructured Spanish bank Cajamar, which has grown its capital base and cleaned up its balance sheet, had its recently issued covered bond downgraded to junk this year by Moody’s. The rating action, which could potentially affect many other issuers, did not take into account the bond’s safety both from a regulatory and structural point of view and, writes Bill Thornhill, was out of sync with the other agencies.