GLOBALCAPITAL INTERNATIONAL LIMITED, a company

incorporated in England and Wales (company number 15236213),

having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

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Loans and High Yield

  • Direct lenders and debt funds have always pitched themselves as being more suitable partners for businesses than banks, bondholders, or other institutional lenders. When the going gets tough, they can be quicker to waive covenants and offer new money than a less concentrated creditor group. But this also puts them in pole position to take the keys from a business should things go wrong — which we may see happen this year.
  • UK broadband company TalkTalk is marketing an add-on to its existing high yield notes, raising new term debt to pay down its revolver. The company is subject to a takeover bid from Toscafund and Penta Capital, which will leave the existing bonds in place, but grant them security, as well as layering in extra leverage with a PIK toggle from Ares.
  • Three Chinese property companies announced dollar bond transactions on Monday, continuing the run of issuance seen from the high yield market since the beginning of the year.
  • German car part maker Stabilus began marketing a Schuldschein on Monday, as many consider whether the automotive sector should be back on investors' buy lists.
  • Plastics packaging firm Klöckner Pentaplast has included an ESG margin ratchet in the loan leg of its refinancing, which was announced on Monday, a feature set to become increasingly common in European leveraged credit this year. Unlike previous deals with this structure, KP will take this structure to the dollar market, as well as euros.
  • Hellman & Friedman is looking to refinance the capital structure of portfolio company TeamSystem, as part of the sale of the firm from its seventh fund to its ninth, a transfer also recently completed by Verisure. Unlike Verisure, the fund switch isn’t accompanied by a monster dividend payment to the new fund, but the new deal will still jack up leverage levels.
  • G.Network Communications, the London-centric broadband provider, has signed loans totalling £229m, with the company planning a £1bn investment programme into the UK capital.
  • India's Future Retail failed to make an interest payment on its dollar bonds last Friday, making it the second time it has missed a coupon on its debut notes as it struggles to overcome Covid-related woes.
  • Taiwanese banks are increasingly asking their loans teams to avoid participating in deals led by global investment banks, in line with guidance given by the finance ministry last year and over fears of being burnt again by possible defaults.
  • Hong-Kong-headquartered bank SC Lowy has hired Jonathan Graber for its trading team in London.
  • Infravia Capital Partners, the French private equity firm, has amended an equity bridge facility to make it align with the UN’s Sustainable Development Goals. Margins are tied to the ESG performance of its fund’s investments, following the lead of EQT and Eurazeo.
  • Altitude Infrastructure, the French telecoms company, has signed a €266m credit facility, which it will use for two fibre optic networks.