Loans and High Yield

As the perceived European political risk reduced following the results of the first round of French elections, Asian debt markets opened on Monday to a deal from India's HPCL-Mittal Energy (HMEL).

Drax Group, the UK energy holding company, held a roadshow on Wednesday and Thursday for a £500m fixed and floating rate senior secured bond offering, following its acquisition of Opus Energy earlier this year, and further increased it to £550m on Friday.

A strange and, until recently, rare phenomenon has been witnessed in the leveraged loan market — pricing widening on deals. On Thursday Micro Focus chose only the minimum amount for the euro tranche within its $5.5bn loan package, prompting whispers among some observers that this hitherto red-hot market may have found its floor, and even rebounded off it.

Want Want China Finance and China SCE Property sold $500m and $300m of notes respectively on Thursday, as both hit the market before the expected rush investment grade names next week.

China Merchants Port Holdings (CMP) successfully raised Rmb2.5bn ($363.4m) from a five year Panda bond on the interbank market on Thursday. The company is presenting the trade as a Silk Road bond, even though all of the proceeds will be used onshore.

Fosun International has opened a tap of its March-issued $800m 5.25% 2022s, following reverse inquiry.

HCP Global has distributed its $540m facility among 17 banks, with mostly Taiwanese lenders receiving an allocation.

UK hotel group Travelodge and social care firm Voyage Care both started roadshows on Wednesday for £165m and £250m of notes, respectively.

UK forecourt operator Euro Garages held a lender call this morning for a repricing request on its £250m and €585m term loans, a deal one investor on Thursday said was a potential barometer of where market pricing now is.

Three Chinese companies have been hit by difficulties that resulted in them breaching covenants on international syndicated loans. Despite the cluster of problems, bankers says this does not point to more systemic failure in China Inc. John Loh and Shruti Chaturvedi report.

China’s Times Property Holdings sealed a quick $225m deal on Wednesday to reach the upper limit on its offshore issuance cap for the year.

Chinese corporate names Want Want China Finance and China SCE Property were out in the market on Thursday morning.