Loans and High Yield

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.

Shandong Iron & Steel Group, Excellence Commercial Properties and Sunshine 100 China Holdings completed their offshore fundraising exercises on Wednesday after announcing their deals with final price guidance.

The market volatility in the week of the US Thanksgiving holiday was a microcosm of where the corporate bond market has evolved to through 2018. Market volatility and lack of buying interest pushed spreads wider again, but that widening meant investors could not resist new issues for long.

Leveraged debt fund managers seem resigned to a low-rated deal pipeline and aggressive documentation this week, with the market likely to accept these conditions, despite a sell-off which saw the iTraxx Crossover at its widest so far this year, 340bp, on Wednesday.