Loans and High Yield

Another Germany-focused real estate firm is dipping into the high yield bond market. Peach Property is launching €250m of unsecured senior notes, following a successful bond issue by Demire. While Germany is on the brink of recession, its property market keeps breaking new records.

KKR announced has closed its European Fund V, a €5.8bn vehicle looking for deals in western Europe. The company’s EMEA private equity funds are investing a combined $11.6bn at the moment, meaning the new fund offers a huge increase in firepower.

Chinese borrowers that have previously ignored the euro bond market should reconsider. Recent deals show there are plenty of reasons for issuers to tap the European investor base.

Six Chinese real estate issuers — mostly high yield — flooded the dollar bond market on Monday with one to four year tenor deals. Investment grade rated China Vanke Co, on the other hand, tapped the longer end of the curve with a dual-tranche issuance.

Spanish paper company Lecta moved closer to its restructuring on Friday, as the majority of its bondholders signed a lock-up agreement to swap debt for equity. The deal replaces €600m of 2022 and 2023 notes with new senior and junior notes and equity in the company.

Citi is leading a $2.215bn dual currency PIK toggle issue for packaging company Ardagh, refinancing existing PIK and PIK toggle issues after the firm span out its metal packaging business — and making it easier to sell shares in the tightly held group to the market.

The $166.3m loan to support Blackstone Group’s Essel Propack acquisition has been oversubscribed, with 10 participants joining during general syndication.

Adira Dinamika Multi Finance, an Indonesian motor vehicle financier, is making a quick return to loans, seeking its second offshore borrowing this year.

Central China Real Estate priced a $200m four non-call two year bond on Thursday, after surprisingly strong demand allowed it to tighten pricing aggressively.

The holding company of the Bolloré billionaire family is planning to issue an unspecified amount of unsecured notes. Their largest investment, a 26% stake in media giant Vivendi, will be excluded from some of the covenants designed to protect the investors.

French supermarket group Casino started marketing work for the bond it is relying on to unlock a new revolving credit facility, terming out its debt maturity and relieving some financial pressure.

Chinese conglomerate Fosun International turned to Europe for its fundraising efforts this week, enticing investors to a €400m high yield rated bond.