Loans and High Yield

Issuance in the European leveraged finance market has been one-sided since the shock result of the US election last month. A notable bond-to-loan trend has prevailed, with sponsor-driven single-B issuance making the loan market increasingly hot, while leaving the high yield market out in the cold. Max Bower reports.

The UK's United Biscuits is now rated B1 after a one notch downgrade by Moody’s on Thursday.

Service station operator MRH tightened guidance on its £250m sterling term loan this week, with commitments on the deal due alongside several others on Thursday.

China put the brakes on capital outflows again this week, taking aim at both large and small scale transactions amid a falling renminbi. Market participants are digesting the impact of the new curbs, as yet unconfirmed, but some thought that they could weed out dodgy deals and raise the quality of M&A financing. John Loh and Shruti Chaturvedi report.

Ronshine China Holdings started taking orders for its inaugural international bond on Thursday. The deal was announced with substantial anchor orders following the roadshow, said bankers.

Bank of Tokyo-Mitsubishi UFJ (BTMU) has named Vivian Sam as assistant general manager of event finance at its Asian investment banking division (AIBD), in a new role for the former Citi acquisition finance banker.

French media technology firm Technicolor increased its euro term loan offering by €200m to €450m on Wednesday, as Verisure tightened and accelerated the pricing and commitments on its own deal.

Bankers and investors are still complaining about the lack of single-B rated issuers in the European high yield market this year, but 2017 will bring little relief, Fitch said on Wednesday.

Investment grade corporate bond issuance kept up a steady pace this week, as borrowers took advantage of one of 2016’s last clear weeks for issuance. But far from being putt off by new issue premiums growing plump as turkeys in a market worried about interest rate risk, issuers know conditions could well be worse in the new year.

The ECB’s announcement it was planning leveraged lending rules for the banks it supervises has been polarising, confusing, and often emotional. But the market will come to appreciate it in time.

US drugs specialist Catalent Pharma on Tuesday began offering its debut euro bond to investors as it sought funding for its acquisition of peers Pharmatek and Accucaps.

Elysium Healthcare, a portfolio of 22 UK mental healthcare facilities being divested by Acadia Group, held a lender meeting on Thursday for £240m of loans following its £320m buyout by BC Partners.