Loans and High Yield

Asian issuers found strong response to their dollar bonds on Wednesday, coming to the market after a rough start to the week on the back of the coronavirus-related volatility. As investors show their willingness to take on risk again, debt bankers are optimistic the pressure on the market will be lifted before long, writes Morgan Davis.

VodafoneZiggo has sold a €1.36bn holding company refinancing, seizing the chance to lock in tightly priced subordinated debt for a decade. The company offered euros and dollars in 10 year unsecured format, with five year call protection.

VodafoneZiggo is marketing a €1.36bn refinancing from its holding company, seizing the chance to lock in tightly priced subordinated debt for a decade. The company is offering euros and dollars in 10 year unsecured format, with five year call protection.

Asia's dollar bond market reopened on Wednesday amid volatility around the rapid spread of the novel coronavirus. But debt bankers in the region are cautiously optimistic about the state of the market.

Sector Alarm, the Norwegian-based home security company, is looking to reprice its leveraged loan debut from last year, cutting the margin on the €590m facility from 350bp at issue down to 300bp-325bp. The move follows a wave of loan repricings and refinancings from some of the largest issuers, as credit markets continue to tighten despite increased jitters around global growth and the spread of coronavirus.

Credit Suisse has started general syndication of more than $5bn of debt funding EQT and Digital Colony’s acquisition of Zayo, one of last year’s largest LBOs. The dollar market will take the lion’s share of the acquisition loan, with $4.235bn of first lien on offer, but even the euro tranche is substantial, at $825m-equivalent.

European high yield is still moving fast ahead of next week’s SEC deadline, which will see earnings numbers for the third quarter 2019 go ‘stale’ and force issuers to market deals on their Q4 figures. Monday brought three more mandates for more than €2bn in total, on top of a roadshow already announced for Fedrigoni.

The Gabonese Republic pulled in more than $3bn of demand on Thursday for a $1bn 10 year bond that some observers saw as having been priced flat to its curve.

New dynamics are appearing in the sustainability-linked loan market, as the product balloons and banks prepare for more intense scrutiny of their green lending activities. The trends highlight how unformed and confusing this young market still is, writes Jon Hay.

Together Money has refinanced its 2021 high yield bond with a new issue, taking advantage of strong conditions and a dearth of sterling supply to take more cash off the table and pay down its revolver too.

The idea that companies can raise subordinated debt only through private or club deals was put into deep freeze this week, when ice-cream maker Froneri fully syndicated two second lien tranches as part of its €5.7bn refinancing. Owen Sanderson reports.

Some weird genetic mutations have been appearing in the hothouse of sustainable finance, where new green products are cultivated to beautify the grandees of the capital markets.