Loans and High Yield

Signal Capital Partners, the fund started by a trio of bankers from Deutsche Bank's structured finance and distressed debt businesses, has hired a chief strategist.

Lebara, the telecommunications firm, is looking to redeem its €350m bond due 2022 early rather than list it on the Oslo exchange, after it failed to meet a deadline to produce full audited financial results. It seemed to suggest on Monday that unnamed forces were massing against it, but senior high yield bankers warned that the lightly regulated Nordic exchanges had always been likely to invite this sort of drama.

There are two phrases that don’t often go together in the capital markets: ‘13% yield’ and ‘two year bond’. But that eye-watering funding cost was just what China’s Hydoo International Holding paid on its latest exchange offer, marking the highest yield for a dollar bond since 2015. Bankers think there will be plenty more where that came from, writes Addison Gong.

China Aoyuan Property Group’s $200m bond dropped sharply in the secondary market on Thursday as global markets wreaked havoc on the company’s notes.

Investors appear to be allocating more cash to buying leveraged loans and high yield bonds.

Investment grade corporate market participants are all aware that the European Central Bank’s bond buying programme will come to an end in 2018. The pace of that buying slowed in April, but the cash that investors are holding is proving to be an easy replacement for the central bank’s support.

Puma Energy has closed a $1.37bn syndicated loan, with commitments from 48 banks helping the company boost its fundraising.

China Aoyuan Property Group, Hydoo International Holding and Indonesia’s Federal International Finance wasted no time in hitting the bond market on Wednesday after the Labour Day holiday.

High yield notes sold by co-working space company WeWork dropped in four straight days of secondary trading after they were sold last Wednesday, less than a week after buyers piled into the offering in an apparent vote of confidence for cash burning companies.

GTT Communications, the US cloud networking provider, has mandated banks to arrange a dollar and euro loan of $2.87bn-equivalent for itself and a Dutch subsidiary. The deal will only go through if it completes its acquisition of Luxembourg’s Interoute.

Despite expectations of a slowdown in the pace of issuance in the European high yield market, two borrowers brought €2.9bn of new bonds this week. Both issuers, Spanish construction firm Aldesa and Italian banking payments group Nexi, marketed refinancing deals.

Fintech firm Paysafe was out in the leveraged loan market this week with a chunky $800m extension of the loan deal it sold for its own acquisition in November.