Loans and High Yield

Four fund managers have left Kames Capital’s fixed income team to join competitor Artemis this week, prompting a staff reshuffle at their former employer and expectations of new high yield funds being opened at their new home.

Element Materials Technology, the UK materials testing company owned by Bridgepoint, was looking for a small loan extension this week, and seeking consent from its investors for higher leverage ratios under the loan covenants.

Chinese property developer KWG Group Holdings executed a swift tap last Friday to use up the rest of its fundraising quota for the year, adding $150m to its coffers.

Bank of the Lao PDR (BOL) is planning to return to the loan market for a $100m facility with an unlimited greenshoe option.

China’s Kunming Dianchi Water Treatment has launched its debut offshore loan of $150m.

Triple-C rated high yield bond issues had disparate fates this week. While UK private schools group Cognita was pulling its new notes, adding to November’s list of failed deals, German pharma company Stada priced its bonds in line with guidance.

Dartington Hall Trust, a charity in the UK, is keeping its bond offer open until March next year, amid a slack retail market.

Three Chinese borrowers with education businesses are seeking funds from retail lenders in syndication.

Sunac China Holdings ventured into the market on Thursday for a tap of its existing 2020 bond. The Chinese borrower found such a huge response that it was able to raise more money than planned.

Huaibei City Construction Investment Holding Group Co’s debt transaction remained open on Friday for a second day of bookbuilding, as the Chinese issuer sought additional orders from investors.

Several European central banks have contacted the Loan Market Association (LMA), raising concerns about the risks of the leveraged finance market. But following a round of private meetings in London, the authorities are not expected to bring forward new regulations.

Shares and bonds of UK holidays operator Thomas Cook took a beating this week, after it reported low earnings and high net debt, which it blamed on weak local demand and currency effects. But investors saw the company as a victim of poor management, rather than domestic Brexit turbulence.