Loans and High Yield

Airbus — Ethypharm — Vopak — Cocobod —Ahlstrom

High yield participants predict that they will see a boost in issuance before the summer break, as the market enjoys the trickle-down effect of the ECB's CSPP and UK voters possible vote 'Remain' in the UK's EU membership referendum— but few believe the boost will be sustainable.

The southeast Asian high yield market saw some long overdue activity this week, with Indonesia’s Sri Rejeki Isman raising $350m from a liability management exercise. With volatility and low commodities prices forcing high yield issuers from the region to stay away from the market this year, Sritex’s success has now flung open the door to new issuance, writes Narae Kim.

Indonesia’s Solusi Tunas Pratama is looking to replace its dollar liabilities with local currency borrowings in a bid to curb risks from FX volatility. The firm is just one of a list of borrowers considering a similar approach. But the change in tack has caused some concern among foreign lenders, which would struggle to compete with local banks. Shruti Chaturvedi reports.

Majorca-based travel services operator Hotelbeds has released price guidance on its €490m cov-lite seven year term loan ‘B’ following bank meetings on Tuesday in London.

Dalian Wanda Group has tied up financing totalling HK$30.78bn ($3.9bn) for a HK$34.5bn offer to take its property arm private.

Verisure, the B2/B rated Swedish alarms systems company, had accelerated commitments due at 3pm on Thursday for its €1.02bn term loan ‘B’.

Indian mortgage lender HDFC is seeking $375m five year money in general syndication and is set to receive the entire loan from the leads this week.

French car hire firm Europcar Group on Tuesday sold a €125m tap of its 2022 bond in a high yield market that is longing for more single-B issuance.

Airbus Group has allocated its €425m term loan ‘B’, backing KKR’s €1.1bn buyout of Airbus' defence electronics business.

Ethypharm, the French pharmaceutical firm, has released price guidance on its €337m seven year term loan ‘B’, following a bank meeting on Wednesday morning.

Corporate bond new issuance in Europe has eased off the accelerator, with market participants talking of oversupply in recent weeks. But two events on the horizon are exerting an influence: the Brexit referendum on June 23 and the European Central Bank’s expected start of its Corporate Sector Purchase Programme.