Loans and High Yield

Dealers will hold an auction to settle credit default swaps referencing Portugal Telecom International Finance, after the International Swaps and Derivatives Association’s (ISDA's) EMEA Determinations Committee ruled that a bankruptcy credit event had been triggered on the contracts

The European high yield market has dealt with bouts of risk aversion and fund outflows before — but the UK’s June 23 referendum on European Union membership has thrown up further challenges for the asset class, said Fitch Ratings in its first post-Brexit market report.

EMEA loans are down sharply this year and few are optimistic that the second half will provide a boost. However, the Schuldschein market has ploughed ahead with deals in another year of strong issuance volumes despite the UK’s Brexit vote last month.

One week after the UK voted 'Out' of the European Union, euro leveraged loan market participants say there will be consequences but not fundamental shifts like those seen in 2008.

Refresco Gerber, the Dutch drinks bottling company, lost one bank and added two new ones to its syndicate in its €872m refinancing which saw strong demand, the firm said.

Indian company Piramal Healthcare has sealed a $145m refinancing bridge loan with four lenders.

Two entities of China’s Chonqing municipality — the Nan’an district financing vehicle and the Chonqing Grain Group — have mandated banks for potential deals while Huai’an’s local government financing vehicle is also seeking a new bond.

Home building materials maker China Lesso Group has approached the loan market for a $300m borrowing, some two years after sealing its debut syndicated facility.

While a handful of loans were put on hold following the UK’s vote to leave the EU, several deals already in the market are braving the choppy waters, with leveraged loans the first in line for external shocks.

Syndicated loan documentation has been in the spotlight since the UK voted to leave the European Union, with some market participants asking whether Brexit-related clauses might be invoked to block deals, and others questioning the continued use of English common law.

French data processing services firm Tessi is marketing €276m of loans to fund its acquisition by Dentressangle Initiatives, as some pressures on the levloan market from EU political tensions recede.

The Sri Lankan sovereign has finally hit the loan market for a $300m borrowing — a good three months after news emerged of a potential mandate and about a year after it issued a request for proposals. But the country is on much stronger footing now despite a ratings downgrade earlier this year, writes Shruti Chaturvedi.