Loans and High Yield

William Hill’s £350m seven year high yield deal last week grabbed an opportunity opened up by the extension to the Brexit deadline, according to group treasurer Mark Hirst, supplying a sterling market that has seen sparse issuance so far this year. But the constrained supply in the market meant the company’s attempt to buy back its 2020s at 103 attracted limited investor interest.

EG Group, the UK petrol station company owned by TDR Capital, has boosted the size of its dual currency high yield bond issue, adding a new senior secured euro tranche on the back of high demand. But senior bondholders are getting a rough deal from the size increase, which is being partly used to cut their safety cushion by paying off second lien debt.

Allegro, the Polish e-commerce platform, is raising Z2bn (€470m) in a dividend recapitalisation, according to bankers. The deal, one of the biggest CEE loans in this year’s pipeline, is being led by three local and international lenders, although some market participants said the Polish banks would be capable of providing all the money.

For all its woes, Deutsche Bank’s corporate finance business has much to play for in EMEA, writes David Rothnie.

Indonesian property developer Alam Sutera tapped its 6.625% 2022 notes on Tuesday, raising $125m from the trade.

The Tianjin government’s waning support for local corporations was brought into focus this week, when Fitch downgraded Chinese dollar bond issuer Tewoo Group by a hefty six notches. It was the latest warning sign of the debt-servicing ability of the city’s struggling state-owned enterprises (SOEs). Addison Gong reports.

Two Indonesian auto finance companies, Indomobil Finance Indonesia and Chandra Sakti Utama Leasing (CSUL), have returned to the offshore loan market.

China’s Yingde Gases Group has received a strong response in the loan market for its $300m three year facility.

Sirius Minerals, the London-listed miner, has won investor support in the equity financing leg of its new $2.8bn phase two project financing to fund the development of what is intended to be the largest polyhalite mine in the world in the North York Moors near Whitby.

Asset manager Pemberton has closed a private debt fund called Strategic Credit Opportunities Strategy (SCOS) at €1bn, with a target of 13% gross returns for its limited partners, in euros.

Galapagos Holding, the maker of heat exchangers owned by Triton Partners, has this week postponed the release of its audited results for last year, as it digs in for discussions with creditors about a recapitalisation.

Millicom International Cellular, the emerging markets-focused telecoms group, is planning to issue its first sustainable bond. It published a Sustainability Bond Framework on Tuesday and will issue with a high yield rating.