Loans and High Yield

Xinyuan Real Estate is drumming up interest for its first international bond of the year, hiring seven firms to work on a Reg S transaction.

UK mortgage lender Together Financial was the only new deal in the European high yield bond market of the week when, on Wednesday, it sold a sterling offering that received firm demand in a rare example of a single-B name opting for bonds over leveraged loans.

The repricing train steams on in European leveraged loans, although several buyouts are coming down the track, offering new paper and the promise of some yield to desperate investors.

Ronshine China Holdings took advantage of the positive market sentiment on Tuesday to grab an additional $225m from a tap of its debut 2019s, reversing the rocky reception received for the original notes.

Chinese property developer Yanlord Land Group is poised to return to the loan syndications market with a $600m deal that will refinance a $385m borrowing raised in 2014.

Bank of China has made a senior level change in its loans team in Beijing, transferring a banker from its Singapore branch to take up the top post in the syndications department.

Chinese state-owned enterprise, Qinghai Provincial Investment Group Co, opened books for a Reg S transaction on Wednesday morning.

Arrow Global, the UK distressed debt buyer, had its ratings upgraded by Moody’s on Tuesday to Ba3, increasing the market’s overall stock of bonds with double-B ratings — a stock which some investors believe is excessive.

Stada, the German generic pharmaceuticals firm, could offer leveraged finance investors the respite from repricing deals that they have craved for several months as it fields numerous buyout offers worth around €3.5bn.

Spanish travel distributor Hotelbeds is planning an add-on of its original LBO loans to fund the acquisition of Tourico Holidays, a US peer.

Chinese toll road operator and property developer Road King Infrastructure took advantage of investor desire for high yielding paper on Monday, offering a rare perpetual, fixed for life deal that still attracted a book that was more than 15 times subscribed.

Bankers and investors believe Europe’s election schedule will drive up rates on new high yield bonds and increase the attraction of leveraged loans to issuers — even as Together Financial’s new sterling offering kept the market alive.