Loans and High Yield

Chinese sportswear manufacturer Xtep International Holdings has returned to the loan market for a HK$1.6bn ($204m) refinancing deal that is open only to existing lenders.

An acquisition of British pub giant Ei Group by its smaller competitor Stonegate is about to trigger a clause that allows Ei Group to redeem £1bn of its senior secured bonds at par. Secured bondholders will likely have to swallow a pint of bitter if the sponsor behind the deal does not budge.

Greenko Energy Holdings found ample support for its $950m dual-tranche bond, thanks in part to the duration it offered investors, as well as the positive sentiment surrounding India.

Chinese local government-owned Dalian Deta Holdings Co has debuted in the international bond market for $300m, while repeat issuer KWG Group priced a tight transaction on Monday.

Sirius is trekking the globe marketing a $500m senior secured note that is key to unlocking a $2.5bn revolver and $400m in convertible bonds. The financing will be used for a gigantic fertiliser mine in Yorkshire, UK. The coupon for the bond is expected to hit the double digits, making it one of the highest yielding issues of the year.

Polish convenience store operator Żabka Polska is expected to close its dividend recap imminently, according to market participants. Bankers have compared the deal to the dividend recap transaction that Polish e-commerce platform Allegro completed in May.

Alcentra, a European subsidiary of Bank of New York Mellon, has raised €5.5bn for a new private debt fund, a fundraising that puts it alongside Ares Capital and BlueBay Asset Management in securing giant commitments to deploy to Europe’s mid-market borrowers.

Concerns around some Indonesian and Chinese credits, including Delta Merlin Dunia Textile and China Minsheng Investment Group, have put a dent in investor sentiment in Asia with bonds underperforming in the secondary market.

Piped city gas distributor and repeat issuer China Oil and Gas Group has nabbed $320m for refinancing, offering investors some diversity amid a burst of supply from high yield property names.

Pension funds, especially Canadian ones, are increasingly direct participants in the largest leveraged buy-outs. They're appearing not just as members of consortia, but also sometimes alone, as in Ontario Teachers' purchase of Trivium, a spin-out from packaging firm Ardagh.

Euro investors gave the buyout debt for EQT and Abu Dhabi Investment Authority’s purchase of Nestlé Skin Health a particularly strong reception. Driving pricing through 400bp despite the high leverage on the deal.

Leaders of the big US investment banks were cautiously optimistic about upcoming investment banking activity, despite a poor second quarter across their capital markets divisions.