Loans and High Yield

JP Morgan is marketing a single-B rated high yield bond to fund the acquisition of developer CG Gruppe by Consus Real Estate, a further sign that the bond market is wide open and keen to take down more aggressive, highly levered deals.

Drax Group, the UK electricity generator, has launched a $200m tap of its 6.625% 2025 notes, to pay for part of its purchase of Iberdrola’s Scottish power assets earlier this year.

Philippine oil company Petron has received a strong response for its return to the offshore loan market, increasing the size of its deal to $800m.

Indonesian palm oil producer Perkebunan Nusantara III has launched its debut offshore borrowing into general syndication.

Distressed Chinese oil and gas producer MIE Holdings managed to repay the remainder of a dollar-denominated 2019 bond on time, though the company still faces refinancing pressures.

China’s Car Inc is out with the terms of its new money offer, following the closing of an exchange offer for its existing 2020 notes.

A substantial and growing proportion of asset managers are asking big oil companies to realign their businesses with the Paris Agreement by moving away from fossil fuels, a survey released on Monday has found. But only a few have set deadlines or thought about what to do if the oil companies fail to comply.

Chinese property developer Yango Group Co priced a $150m tap of a recent two year bond on Thursday at a level that 62.5bp inside where the original bond landed less than a month ago.

Profit Reach International, an investment vehicle owned by Chinese billionaire Shen Guojun, has closed a $550m refinancing, attracting 12 participants during syndication.

Tesco issued a new £400m six year bond, to fund a tender for bonds from eight older issues, and saw blow-out demand of £3.3bn, as the UK supermarket heads back towards investment grade status.

Eir, the Irish telecoms company, has won strong demand and tight pricing for its combined bond and loan deal, allowing it to increase the size by another €100m — and pay out a larger dividend to its owner, groups controlled by French billionaire Xavier Niel. One of these groups, Iliad, has just emerged from a costly fight for rights to the 5G mobile spectrum in Italy, leading it to consider asset sales and other routes to raise cash.

The European high yield market is experiencing a post-Easter resurrection, with six new issues announced after the London market returned to work on Tuesday. While some of these trades were the lower-rated acquisition bonds investors having been crying out for, the bond market is still largely stuck with deals too long, too tight, too risky or too large for first lien loans.