Loans and High Yield

Private equity funds have spent the last two or three years clearing out their cupboards, selling business after business. They have plenty of new money, too — but have not been buying assets. Brexit could bring them out of hiding.

Swedish sponsor EQT is set to syndicate €1.25bn of loans in July to fund its acquisition of German Bilfinger’s real estate business, in a market that has been led by German and French deals since the Brexit referendum.

English law loan documents are not likely to be scrapped if the UK leaves the European Union, but there will be changes to the docs in the event of a Brexit.

Barclays has hired a managing director from Morgan Stanley to join its distressed debt business.

Biostime International Holdings’ refinancing of a $450m bridge loan has been oversubscribed in syndication.

Volatility has reigned following the UK’s decision to exit the European Union last Friday. But market participants in Asia are now hopeful that the region’s high yield market will be a new go-to place for investors trying to redeploy their funds away from Europe.

Singapore water treatment firm Citic Envirotech is seeking a tap of the $175m 5.45% perpetual notes that it originally sold last year, becoming the first issuer in Asia to test the G3 market since Brexit.

Real estate developer Vietnam Investment Group Joint Stock Co (VIG), which signed a $200m three year loan last year, is understood to be considering prepaying the money.

Argentina’s confectionary maker Arcor is tomorrow meeting investors in the US and London to market a $300m offering, the only active high yield deal that European investors can consider in the week after the UK's Brexit vote.

Loans bankers are holding out for details of the divorce agreement between the UK and the EU to surface before assessing the full impact of Brexit on their market. But in the short term, they expect a hit to already low volumes.

UK packaging firm Linpac is expected to launch €175m of loans in the coming weeks, a deal it has been marketing since May. The deal could be the first for a UK borrower since the country voted to leave the European Union in a referendum last Friday.

Hong Kong listed Chinese real estate company Skyfame Realty has sealed a $60m two year term loan with one lender.