Loans and High Yield

One piece of information all parties focus on for new corporate bonds is the premium the issuer pays. For much of last year and the early part of this, the premium at any given time was broadly applied across all new issues, but investors have forced syndicates to be more precise in what over what individual issuers pay.

Beijing Enterprises Water Group (BEWG) raised $500m on Tuesday to retire a bond maturing in May, finding support from investors despite the numerous unrated state-owned options available to them.

Central China Real Estate was back in the offshore debt market on Tuesday with a Singapore dollar deal, just a week after sealing a US dollar bond.

Work space provider WeWork is planning to tap the US high yield bond market this week, the latest in a recent string of early stage companies to turn to the capital markets to help fund cash intensive growth strategies.

McGraw-Hill Global Education has obtained a payment in kind (PIK) term loan from funds advised by Guggenheim Partners and Ares to help refinance its 2019 PIK toggle notes, five months after it pulled a PIK toggle bond aimed at achieving the same goal.

More than €3.5bn of high yield bond deals in euros, sterling and dollars were scheduled to close this week. Although some bankers described the pipeline as “crowded”, they expected market digestion to be ‘healthy’ ahead of quieter times.

A repricing in the Indonesian high yield dollar bond market on Monday took a toll on property company Bumi Serpong Damai (BSD), which had to navigate numerous hurdles to push a $250m deal over the finish line.

Cambodia’s Prasac Microfinance Institution has launched a $50m three year term loan with a $50m greenshoe option into syndication.

After strong first quarter results and in a receptive high yield market, online streaming service Netflix announced a new $1.5bn 10.5 year senior unsecured bond on Monday to finance new content for the platform, eventually walking away with $1.9bn.

Bookrunners revealed more than €3bn of new speculative grade deals from seven issuers in the European high yield market this week. Coupons are slowly widening in the primary market, but they are still hitting issuers’ pricing targets, said market participants.

BOC Aviation, Metallurgical Corporation of China (MCC) and Bumi Serpong Damai were the first out of the gates on Monday morning with their new bond deals, as the Asian debt market prepares for an onslaught of supply.

Vietnam’s Nghi Son 2 Power, which counts Japanese trading and investment conglomerate Marubeni Corp as one of its investors, has raised a $1.869bn project loan from a group of mainly Japanese lenders.