High Yield Bonds

  • Daimler gears up on cash as companies hurry new lines of credit

    Daimler gears up on cash as companies hurry new lines of credit

    Daimler has signed a €12bn one year loan with four banks, to strengthen its cash position for the pandemic’s stormier days. It joins a host of borrowers agreeing new credit lines with relationship banks, rather than drawing down existing facilities. Bankers say the borrowers hope to enter the bond markets down the line.

  • Mission impossible? Cruise co Carnival storms into capital markets with high stakes rescue

    Mission impossible? Cruise co Carnival storms into capital markets with high stakes rescue

    Dollar high yield and convertible bond buyers dived straight into the riskiest possible end of the market on Wednesday, snapping up rescue issues for cruise operator Carnival Corporation, a firm at the centre of the coronavirus storm. Carnival pledged nearly all its ships to back bondholders’ investments, while convert investors spied a chance to double their money — if the cruise industry can bounce back. Aidan Gregory, Jon Hay, Sam Kerr and Owen Sanderson report.

  • Insurers bulked up on airline risk as export credit agencies pulled out

    Insurers bulked up on airline risk as export credit agencies pulled out

    Private sector insurance companies have written extensive guarantees for the purchase of new aircraft from Boeing and Airbus in the past two years, filling a gap in the market left by the retreat of US Eximbank and European export credit agencies. But with aircraft around the world grounded and airlines slashing capital expenditure, these insurance firms could be stuck with the risk.

  • Rare bullish companies still buying own stock

    Rare bullish companies still buying own stock

    As the coronavirus eats into the global economy, most companies are putting their share buy-back programmes on hold — but there are exceptions. ContourGlobal, which generates power in emerging markets, has launched a new buy-back programme, while Philips is using an unusual derivative technique to adapt its plan to crisis conditions.

  • Bond buyers pile in for Carnival’s giant priming debt opportunity

    Bond buyers pile in for Carnival’s giant priming debt opportunity

    Dollar high yield buyers showed up in force for the largest priming debt opportunity provided so far by the coronavirus crisis, Carnival Corporation’s $4bn rescue offering, priced alongside a convertible and an equity capital raising on Wednesday. The package provides funds for the stricken cruise operator until November, but even if the company can’t start sailing again this year or next, investors in the new issue are first in line for the firm’s $38bn of assets.

  • Dyson first UK firm to sell PPs under clouds of Covid-19

    Dyson first UK firm to sell PPs under clouds of Covid-19

    Dyson has become the first UK company to sell private placements in the past month, as the coronavirus complicates primary issuance and the market instead focuses on amendments to existing deals. Sources said the UK manufacturer succeeded because it was realistic over the price it would have to pay.

  • Carnival rescue bond eschews euros as dollars goes large

    Carnival rescue bond eschews euros as dollars goes large

    The high yield bond leg of the rescue package for cruise company Carnival is flying off the shelves in the dollar market, leading the company to increase it from $3bn to $4bn, cut pricing, and drop the planned euro tranche entirely — but the equity capital raising is proving tougher and has been shrunk by $500m.

High yield bond news archive