Loans and High Yield

KWG Group Holdings raised $350m from a three non call two year bond on Tuesday, but an aggressive tightening of 32.5bp resulted in the order book dropping by half from its peak.

Singapore’s Wilmar International has bumped up the size of its dual-tranche borrowing to $1.8bn after attracting 24 participants during syndication.

Market pessimism has deepened after Lebara, the troubled UK-based mobile virtual network operator, failed to release financial results again this week. An offer to pay bondholders a temporary extra spread of up to 700bp is not expected to lift its bond price.

State-owned China National Building Material has kicked off its debut syndication through three bookrunners, seeking $160m from the fundraising.

Bank of China Macau branch is providing a $700m loan to back Chinese alternative asset management firm CDH Investment’s acquisition of Sirtex Medical, according to a source close to the situation.

Investment house Kartesia has provided a unitranche loan for Spanish fertiliser maker Fertiberia to replace part of its debt, as this type of lending becomes more popular in Europe.

Bank of America Merrill Lynch said last week that it had hired Jill Schwartz, the former global head of leveraged finance at Barclays. Schwartz has been named executive vice chairman in the firm’s global corporate and investment banking unit.

WiZink Bank sold its buyout payment-in-kind (PIK) bonds in the euro high yield market this week, a rare opportunity for high yield investors given the slim volumes from the financial sector and Iberian issuers this year.

Dollar bonds from Chinese local government financing vehicles (LGFVs) are experiencing a sharp rebound in the secondary market, after months of trading under water.

Chinese internet firm NetEase is tapping the international loan market for the first time, seeking a $500m revolving credit facility.

Beijing Capital Grand closed a successful $400m floating rate bond on Thursday, after waiting weeks for a market window. But the transaction fell flat in the secondary market after a bookrunner’s withdrawal from the trade spooked investors.

High yield investors are hoping that a glut of fallen angels in US corporate credit might help alleviate the drought of issuance they have suffered this year, but a report from S&P Global argues that concerns over the risks in triple-B rated borrowers might be overdone.