Loans and High Yield

Merlin Entertainments, one of last year’s biggest take-privates, has some investors worried about whether it will seek new financing to get it through the coronavirus lockdowns that have shuttered the theme park business’s main sites. Any new financing could weaken the security package for existing lenders and bondholders — though liquidity to get through the lockdowns is essential, writes Owen Sanderson.

The Schuldschein market’s official lines of bookbuilding have been all but shut during the Covid-19 crisis, but sources have told GlobalCapital that several companies have discreetly approached larger lenders for club or bilateral deals.

The 2008 financial crisis forged a generation of investment bankers well versed in advising governments — and with many having returned to banking, they are likely to be in demand again. But history suggests banks will not be earning lucrative fees, writes David Rothnie.

Asian borrowers should ready themselves for tighter covenants on their loans once the Covid-19 outbreak is brought under control, multiple senior loans bankers told GlobalCapital Asia this week. A much-needed price correction may also be coming, writes Rashmi Kumar.

Automation is coming to syndicated loans as the Loan Market Association announces it has entered into an agreement with companies to explore the idea, with loans bankers welcoming the development.

International rating agencies have announced a slew of ratings downgrades or outlook changes for Asian companies as the Covid-19 outbreak puts pressure on their refinancing abilities. But DCM bankers and investors are expecting some good to come from these rapid changes. Morgan Davis reports.

An Ke Technology Co, a subsidiary of Chinese conglomerate Ping An Group, is in the market seeking a $300m three year loan.

Chinese local government financing vehicle Taizhou Xinbinjiang Development Co navigated the volatile markets by opting for a club-style $219m international bond issuance.

Private equity funds are considering how to support their portfolio companies with cash injections or rescue financings, with some sponsors turning to a select group of specialist buyers still willing to lend money against the right structure.

After discussions with the Bank of England and the Sterling Risk-Free Reference Rates Working Group over the impact of Covid-19 on companies’ plans to transition from Libor, the UK’s Financial Conduct Authority said on Wednesday that the final deadline of the end of 2021 was immutable.

Chinese real estate developer Xinhu Zhongbao Co sold a club-style dollar bond on Tuesday, becoming one of the few Asian issuers to have come to the market in recent days. While a pipeline of deals builds up, many are unwilling to launch transactions amid the volatility.

Dai Quang Minh Corp, the real estate arm of Vietnamese carmaker Truong Hai Auto Corp, has opened a $130m loan into general syndication.