Loans and High Yield

The leveraged loan market is showing no sign of slowing after a September filled with jumbo deals as French telecoms companies Altice and its subsidiary SFR join the fray with transactions of more than €1bn.

On Thursday, the European corporate bond markets had two new telecoms deals to consider. Iliad, and unrated French issuer, priced a seven year deal, while Telecom Italia opted for longer.

French optician Alain Afflelou is considering a yield of about 4.5% for its first bond since suspending plans to float on the Paris bourse. Investors branded the figure “punchy”.

Leveraged borrowers turned the pricing screws on lenders on Thursday with Belgium’s Corialis looking to shave off a combined 125bp off existing loans while US firm Tekni-Plex has reversed flexed its dollar and euro facility.

French telecoms company Altice has opened books on a €500m 10.25 year non-call five year senior bond, days after launching a leveraged loan.

Ratings crossover credit Telecom Italia has set final terms on a €1.25bn 10 year trade, which bankers say appeals to high grade investors despite most of the issuer’s ratings sitting at junk levels.

Belgium’s Corialis Group has launched a repricing attempt on €627m-equivalent of loans as the aluminium building systems company seeks to become the latest in a long line of price amendment exercises to hit the market.

Czech rental housing company Residomo is marketing a €680m seven year non-call three year senior secured bond that is expected to garner interest from global high yield accounts and emerging market investors.

German Unity Day and Golden Week in Asia have given European corporate bond investors a break from new issues and a chance to consider whether the current tight level of spreads is right or too tight. Many expect more tightening to come, so picking the right sectors and geographies will be the key to performance.

Hong Kong-listed China Tian Lun Gas Holdings has enlisted two lenders to arrange a HK$1.25bn ($160m) five year loan, invitations for which were sent out this week.

Chinese water treatment and recycling solution provider Citic Envirotech is readying its second international dollar bond, having mandated three to arrange a roadshow from the end of this week.

Details have emerged on the €3.675bn-equivalent of loans for French telecom companies Altice and its subsidiary SFR, as the companies launched similar refinancing facilities into syndication.