Loans and High Yield

Primary activity in the Asia ex-Japan bond market was quiet on Monday as issuers and investors alike put activities on pause while they wait for the US presidential election results to be announced on Wednesday local time.

China Nuclear Engineering Group Co pushed out its debut dim sum deal last Friday to get ahead of the US election this week. Despite the volatility, the transaction garnered Rmb2.7bn ($399.3m) in orders, with the issuer bagging Rmb1.5bn.

Nine banks have been mandated to arrange the financing for the leveraged buyout of Polish online marketplace Allegro, and a senior loan will be launched into syndication later this month.

Europe’s largest laboratory services company, Synlab, on Friday shot a new bond into the European high yield market deal to repay all of its 2022 floating rate notes.

China Nuclear Engineering Group Co (CNEC) is taking another shot at getting its debut CNH bond off the ground, after pulling a dim sum offering back in December 2015.

HNA Group affiliate Avolon Holdings has wrapped up a $8.5bn debt financing for the acquisition of the aircraft leasing business of CIT Group, with five lenders joining the trade.

Both investment grade and high yield corporate issuers pumped out primary paper at a vigorous pace this week, as they bore out volatility to get ahead of the November 8 US elections.

Leveraged buyout activity in Central and Eastern Europe is gaining momentum, driven by a few jumbo deals pushing for terms and pricing more commonly seen in Western European markets. For some local banks, the conditions are too tough to compete.

This was the week high yield borrowers in sterling came out of the Brexit shadows to face a market ridden with political tensions — what they found was hungry, but sober, investors.

The EMEA loans market has been so far unruffled by next week’s US presidential elections — even if in the US itself deal flow has paused and the consequences of the vote could be far reaching, according to several loans bankers.

Invitations are out for a $300m three year borrowing for China ZhengTong Auto Services, a luxury auto dealership. Morgan Stanley is leading the deal, which can be increased in size based on the response.

Chinese banks have been winning loan mandates for corporate M&A and management buyouts originating from their home market. Now they turning their attention to financing more sponsor driven activity, as two mainland lenders have shown by joining a leveraged buyout loan for an acquisition by Carlyle Group. Shruti Chaturvedi reports.