Top stories
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Sponsors ride HY volatility so far, shows SEB research
Private equity firms have bolstered their high yield footprint in European and Nordic issuance, but yield spreads are also running up, according to SEB this week.
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US investors peek at Europe’s levfin debt to grab spread growth on similar risk
Recent cash flows from funds buying European corporate bonds and loans with speculative grade ratings have increased with support from US investors, as markets get ready for the second half of the year.
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Starwood launches HY bond to support GE energy project finance deal
Starwood Property Trust was looking to price a $300m high yield bond on Wednesday to support the acquisition of GE Capital’s energy project finance business, as the firm looks to diversify beyond core commercial real estate activities.
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Astaldi’s Turkish lira anxieties put HY mart on geopolitics alert
Italian construction group Astaldi’s bonds have taken a beating on concerns that its exposure to Turkish risk could derail plans for injection of needed capital. For some high yield investors, it also is a reminder of market vulnerabilities ahead.
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Brexit woes slow sterling HY issuance, but appetite from buyers remains
Sterling high yield issuers have printed less than half the volume of bonds they sold during the same period last year, which many attribute to the uncertainties surrounding the UK’s exit from the European Union. But appetite for sterling risk appears resilient for now.
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US levfin volumes jump after strong earnings season
Both the US high yield and leveraged loan markets absorbed a flurry of deals at the end of last week after second quarter results painted a strong picture for corporate earnings.
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Sports Direct swoops in for House of Fraser, but tough game ahead
Sports Direct announced it has bought House of Fraser on Friday, but the retailer had already entered into administration just hours earlier, meaning investors will be unable to trigger what would have been a lucrative change of control covenant in the firm’s bonds.
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KKR challenges investors over covs on CCCs
BMC Software was set to print $2bn of triple-C rated bonds this week, as it changes sponsor hands from Bain and Golden Gate to KKR. The new owner was also pushing for some of the loosest covenants in the market.
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Tesla investors caught up in buy-out maelstrom
Elon Musk’s sensational claim to have funding in place to take Tesla private stunned the US capital markets this week, but the lack of substantive detail to the plan has largely reversed an initial rally in the firm’s equity and debt instruments, as well as reportedly drawing the attention of the Securities Exchange Commission. Aidan Gregory and David Bell report.
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Wider spreads here to stay, say leverage finance investors
Buyers of speculative grade debt in Europe have entered August with renewed confidence and the hope that spreads can hold their recent widening during the second half of the year.
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Corporate leverage shrinking but mispriced, say HY investors
Speculative grade debt buyers believe borrowers will keep deleveraging, according to an August credit investor survey by Bank of America Merrill Lynch. But fund managers also think the market is failing to price leverage correctly.
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KKR heads to high yield for final piece of BMC buyout financing
The funding for KKR’s acquisition of BMC Software is set to add almost $2bn of high yield bonds in euros and dollars this week, the last portion of a cross-border, multi-billion debt deal that has enlivened the leveraged finance markets.
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Imerys Toiture opens second lien for demanding lev loan investors
The financing for the €1bn acquisition of roofing business Imerys Toiture to Lone Star Funds was revised this week to include a subordinated debt tranche, as levfin investors still active in August pocket riskier but higher yielding paper.
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House of Fraser sticks to CVA after saviour backer quits
The woes surrounding House of Fraser, the distressed UK department store chain, mounted this week, when C.banner International, a Chinese retailer, withdrew from talks to buy a majority stake. But the business said it will complete its company voluntary arrangement (CVA) and find new investors.
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July unusually quiet for US corporate borrowers
Across the credit spectrum, US corporate borrower inactivity made for a July that was exceptionally quiet, compared to typical summer volumes.
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European leveraged finance markets already hot for August
Europe’s leveraged finance markets are having a hard time slowing down for the traditional summer break. Investors are willing to keep deploying cash and issuers are responding, with several deals scheduled to be priced in the next two weeks.
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Lebara debut bonds sink as buyback, results are delayed for late August
Market pessimism has deepened after Lebara, the troubled UK-based mobile virtual network operator, failed to release financial results again this week. An offer to pay bondholders a temporary extra spread of up to 700bp is not expected to lift its bond price.
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CLO volume tapers but supply surge looms
A new deal from Carlyle is the only CLO to have emerged in the primary market so far this week, following just two new deals last week. Spreads have firmed up on the lower supply and better macro backdrop, but with as many as 35-40 deals in pipeline the slowdown might not last long.
Go to GlobalCapital's Leveraged Finance data pages for the latest bookrunner league tables and information on priced deals.
Latest levfin people & markets news
High Yield priced deals database
| Date | Issuer | Maturity | Cur. | Size | Coupon |
|---|---|---|---|---|---|
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| 17-Jul-18 | Kaefer Isoliertechnik GmbH & Co KG | 10-Jan-24 | € | 250 | 5.5% |
| 13-Jul-18 | Kongsberg Actuation Systems BV | 15-Jul-25 | € | 275 | 5% |
| 11-Jul-18 | OTE plc | 18-Jul-22 | € | 400 | 2.375 |
| 11-Jul-18 | K+S AG | 18-Jul-24 | € | 600 | 3.25% |
| 11-Jul-18 | Fabric BC SpA | 30-Nov-24 | € | 125 | 3-mth Euribor +412.5bp |
Latest high yield bond news
Latest leveraged loan news
Latest CLO news
Bookrunners of European Leveraged Loans
| Rank | Lead Manager | Amount $m | No of issues | Share % |
|---|---|---|---|---|
| 1 | BNP Paribas | 13,554.26 | 61 | 7.13% |
| 2 | Deutsche Bank | 11,901.17 | 45 | 6.26% |
| 3 | Credit Agricole CIB | 11,825.01 | 52 | 6.22% |
| 4 | Goldman Sachs | 10,865.30 | 45 | 5.71% |
| 5 | UniCredit | 10,484.86 | 60 | 5.51% |
Bookrunners of European HY Bonds
| Rank | Lead Manager | Amount €m | No of issues | Share % |
|---|---|---|---|---|
| 1 | BNP Paribas | 3,863.89 | 45 | 7.26% |
| 2 | Goldman Sachs | 3,593.75 | 29 | 6.75% |
| 3 | JPMorgan | 3,391.91 | 36 | 6.37% |
| 4 | Deutsche Bank | 3,241.44 | 30 | 6.09% |
| 5 | Credit Suisse | 3,119.95 | 31 | 5.86% |
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Latest news by market and league table performance
Bookrunners of European Leveraged Loans
| Rank | Lead Manager | Amount $m | No of issues | Share % |
|---|---|---|---|---|
| 1 | BNP Paribas | 13,554.26 | 61 | 7.13% |
| 2 | Deutsche Bank | 11,901.17 | 45 | 6.26% |
| 3 | Credit Agricole CIB | 11,825.01 | 52 | 6.22% |
| 4 | Goldman Sachs | 10,865.30 | 45 | 5.71% |
| 5 | UniCredit | 10,484.86 | 60 | 5.51% |
Bookrunners of European HY Bonds
| Rank | Lead Manager | Amount €m | No of issues | Share % |
|---|---|---|---|---|
| 1 | BNP Paribas | 3,863.89 | 45 | 7.26% |
| 2 | Goldman Sachs | 3,593.75 | 29 | 6.75% |
| 3 | JPMorgan | 3,391.91 | 36 | 6.37% |
| 4 | Deutsche Bank | 3,241.44 | 30 | 6.09% |
| 5 | Credit Suisse | 3,119.95 | 31 | 5.86% |
Bookrunners of Dollar Denominated HY Bonds
| Rank | Lead Manager | Amount $m | No of issues | Share % |
|---|---|---|---|---|
| 1 | JPMorgan | 15,833.26 | 127 | 9.86% |
| 2 | Citi | 11,539.69 | 98 | 7.19% |
| 3 | Goldman Sachs | 11,025.83 | 85 | 6.87% |
| 4 | Bank of America Merrill Lynch | 10,994.65 | 101 | 6.85% |
| 5 | Barclays | 10,908.60 | 83 | 6.79% |
