Loans and High Yield

Cairn India Holdings, which signed up new lenders for a $651m borrowing in late July, has received commitments from two more banks.

A growing number of European high yield borrowers are replacing their bonds with leveraged loan debt. This week, investment management company Neuberger Berman decided to add leveraged loans into its bond strategy, and said more investors should follow suit to avoid missing new speculative grade issuance.

Indian company Intas Pharmaceuticals is lining up banks to help it fund an acquisition in Europe and the US, turning back to lenders who helped the company pull off a successful takeover earlier this year. But this time around, it has more bargaining power. Shruti Chaturvedi reports.

Indonesia’s Medco Energi Internasional has added $100m to its outstanding five non call three bonds from last week, bagging a total of $400m as Chinese investors continue to prove a receptive audience.

Air Berlin, the second biggest airline in Germany, is at risk of defaulting on more than €600m equivalent of bonds, including €130m of convertible bonds, after the carrier filed for insolvency.

US plastics manufacturer Trinseo priced its new dollar refinancing bond deal with coupons more than 100bp tighter than the old notes. It is also marketing new term loans.

Amazon’s seven tranche $16bn new issue on Tuesday gave US investors one final jumbo transaction before an anticipated two week summer break starts next week.

Transport and tourism services provider Zhuhai Holdings Investment has sealed a successful return to the loan market through an increased HK$2bn ($255.7m) financing. The company, which tapped offshore liquidity after two years away, launched the deal at HK$1.5bn.

Chinese real estate company Cifi Holdings printed its first perpetual bond on Tuesday, raising $300m. But although the company hit its target, it opted for an aggressive pricing strategy and orders plummeted from over $4bn to $1.1bn.

Wing Tai Properties grabbed an open window in the Singapore dollar market this week to raise S$160m ($117.5m), leveraging its sister company’s credentials to woo investors.

Cheung Kong Infrastructure Holdings hit the market on Wednesday morning local time, marketing a new subordinated perpetual non call five fixed-for-life dollar transaction.

AR Packaging, the Swedish maker of packaging for food, increased its LBO loans with a dividend recapitalisation deal on Tuesday. The move follows a trend of loan borrowers taking on more leverage ahead of new European Central Bank guidance on leverage limits.