Top stories
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Recordati HY bond wins over global vol
Milanese pharmaceutical firm Recordati was out with its CVC buyout funding this week — a €1.3bn bond, in a European high yield market that has mostly ignored Italy’s political fights. But on Thursday, volatility went global and investors started pressing for concessions. Recordati went ahead regardless, and priced on guidance.
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Retail, media issuers in focus despite low defaults
S&P Global said that consumer products, media and oil and gas were the most represented sectors on its list of ‘weakest links’ in sub-investment grade corporate debt, which remains relatively small in a low default environment.
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Coffee group Jacobs Douwe Egberts smells tighter margins
The leveraged loan markets are so awash with demand that investors appear willing to allow Jacobs Douwe Egberts (JDE) to cut funding costs even as it extends maturities.
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Euro levfin primary steady amid Italian noise
Investors in speculative grade debt are joining the discussion about the potential conflict over fiscal policies between Italy and the European Commission. But the leveraged finance markets are still keeping busy.
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S&P warns on corporate leverage but investors eye growth
S&P Global said on Tuesday that a post-crisis borrowing binge has put US corporate leverage at an all-time high, leaving firms vulnerable to downgrades and defaults. But a strong US economy and receptive capital markets are soothing investor concerns for now at least.
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Euro HY shrugs off Italy budget clash, but some fear complacency
The European high yield market appeared unfazed by the spike in Italian risk despite its heavy exposure, with calm secondary trading and Italian names daring to roadshow for new bonds.
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Buyout season strong as CVC injects Recordati bond
Leveraged buyouts are making a comeback in the European high yield market in October, with the new €1.3bn note for CVC’s acquisition of Italian pharmaceutical firm Recordati the latest example.
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Swings in US high yield flows as rates spike
The early part of last week saw US high yield bond funds enjoy big inflows, with spreads grinding to post-crisis record tight levels. But a spike in Treasury yields on Friday has helped reverse some of those flows, and polarise investor sentiment on the asset class.
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Distributed Power leveraged loan deal enjoys cross-border price tightening wave
Most European leveraged loan deals in October are achieving savings of 25bp and more over price talk, with demand on the rise. The loan offering to fund Advent’s buyout of Distributed Power confirmed this trend, as it tightened margins and issue discounts.
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Tight US high yield market still has room to run, say investors
Rising oil prices, strong corporate performance and a supply shortage have driven US high yield bond spreads to their tightest level since the financial crisis. After several cycles of tightening and widening this year, some investors think that this time there is still more room for the rally to run.
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Jumbo hangover leaves spare cash
October’s deal pipeline in the European leveraged debt markets is increasingly looking like a mismatch between supply and demand.
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Carlyle guides $1.8bn leveraged loan for Nep Group in borrower-friendly market
Nep Group, a US producer of broadcast programmes, gave price talk below 400bp for all first lien loans in the financing for its buyout by Carlyle, a further sign that margins have tightened in the leveraged loan market.
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HY pipeline thins, bond buyers hungry
Warner Music and Playtech announced new bond offerings with a combined €730m volume on Monday, less than the latest weekly inflows for high yield retail funds. But Bilfinger pulled its deal.
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Abengoa at it again: one more refinancing
Abengoa, the Spanish renewable energy group, is seeking to convince its investors to engage in yet another rescue plan, which includes debt swaps with no cash coupons and new convertible bonds.
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High yield window still ajar for reverse Yankee bonds
A stream of low-rated US borrowers in euros could continue to flow this year, said market participants, consolidating these reverse Yankees as the second largest sector for euro high yield bonds.
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Refinitiv’s risky provision shows up in Envision buyout bond
A weak term that was built into the bonds backing Blackstone’s leveraged buyout of Refinitiv last week has also been included in a $1.625bn high yield bond being marketed this week for KKR’s buyout of Envision Healthcare.
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European investors buyers march on stepping on covenants
Europe’s leveraged finance issuance is fast catching up with last year’s record volumes, as investors open deep pockets. But the reverse side of this exuberance are weaker terms and more vulnerable issuers, said market watchers.
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Distributed Power lev loan arrives alongside BIS alert
General Electric’s distributed power unit began marketing a $1.8bn leveraged buyout loan. The deal has high net leverage and tight pricing guidance, two of the possible risks in the market underlined by the Bank for International Settlements (BIS) this week.
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El Corte bursts Spain corp bond listing dream
Spain’s largest department store group, El Corte Inglés, picked a busy week to roadshow its first rated issue. But its bonds will be listed in Dublin, despite efforts from the Spanish financial regulator to force a domestic bond listing in Madrid.
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Demand for aggressive buyout debt routs covenant defence
Leveraged finance investors in the US and Europe have scrambled for the bonds and loans backing leveraged buyouts of Thomson Reuters’ Financial & Risk business and Dutch chemical company AkzoNobel this week, with demand driving pricing tighter despite aggressive covenant packages. David Bell and Victor Jimenez report.
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 | 16,684.16 | 83 | 7.43% |
| 2 | Credit Agricole CIB | 13,287.71 | 61 | 5.92% |
| 3 | Deutsche Bank | 12,890.62 | 50 | 5.74% |
| 4 | Goldman Sachs | 12,767.85 | 54 | 5.69% |
| 5 | UniCredit | 11,414.29 | 66 | 5.09% |
Bookrunners of European HY Bonds
| Rank | Lead Manager | Amount €m | No of issues | Share % |
|---|---|---|---|---|
| 1 | Goldman Sachs | 4,861.86 | 36 | 7.48% |
| 2 | BNP Paribas | 4,648.08 | 55 | 7.15% |
| 3 | Deutsche Bank | 4,100.65 | 41 | 6.31% |
| 4 | JPMorgan | 3,756.57 | 41 | 5.78% |
| 5 | Credit Suisse | 3,528.42 | 38 | 5.43% |
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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 | 16,684.16 | 83 | 7.43% |
| 2 | Credit Agricole CIB | 13,287.71 | 61 | 5.92% |
| 3 | Deutsche Bank | 12,890.62 | 50 | 5.74% |
| 4 | Goldman Sachs | 12,767.85 | 54 | 5.69% |
| 5 | UniCredit | 11,414.29 | 66 | 5.09% |
Bookrunners of European HY Bonds
| Rank | Lead Manager | Amount €m | No of issues | Share % |
|---|---|---|---|---|
| 1 | Goldman Sachs | 4,861.86 | 36 | 7.48% |
| 2 | BNP Paribas | 4,648.08 | 55 | 7.15% |
| 3 | Deutsche Bank | 4,100.65 | 41 | 6.31% |
| 4 | JPMorgan | 3,756.57 | 41 | 5.78% |
| 5 | Credit Suisse | 3,528.42 | 38 | 5.43% |
Bookrunners of Dollar Denominated HY Bonds
| Rank | Lead Manager | Amount $m | No of issues | Share % |
|---|---|---|---|---|
| 1 | JPMorgan | 19,016.51 | 146 | 10.22% |
| 2 | Goldman Sachs | 14,082.73 | 99 | 7.57% |
| 3 | Credit Suisse | 13,243.20 | 94 | 7.12% |
| 4 | Bank of America Merrill Lynch | 12,775.52 | 117 | 6.87% |
| 5 | Citi | 12,347.90 | 105 | 6.64% |
