Loans and High Yield

A shocking February in which two proposed deals failed to emerge seems to have killed off the European high yield market. It still has its champions, who insist brighter things are in store, but there are plenty who doubt whether a reopening is in sight, writes Max Bower.

The Monetary Authority of Singapore (MAS) has flagged up issues about banks’ credit underwriting practices, including cases of covenant waivers and one off-credit exceptions given to borrowers. But while the central banks’ concerns are valid, bankers reckon lenders are being more than careful about their syndications business. Shruti Chaturvedi reports.

Konecta, the Spanish call centre operator, has closed its €195m acquisition debt in a club deal with four banks.

UBS has created an new Asia Debt Financing Group, combining its existing debt and leveraged financing teams, according to an internal memo seen by GlobalCapital Asia.

Mauser, the German industrial packaging producer, has priced its €100m incremental term loan in line with guidance.

European corporate bond issuance is finally picking up. Since mid-February, weekly issuance has at last got up to, and sustained, the €7bn-€8bn run rate that last year the market managed right from the off in January.

Tata Motors has allocated its $250m loan among a score of lenders, with the deal coming close on the heels of a separate facility for the same company.

A $460m refinancing for Tata Power subsidiary Bhira Investments has opened into syndication with seven banks at the helm.

ThyssenKrupp, the German industrial group, joined the surge of corporate bond issuance on Tuesday as the fallen angel company raised €750m.

Solera Holdings, the Texan car and property insurance claims processor, priced its $3.9bn acquisition debt package in line with revised guidance, after reshaping the debt structure in response to weak investor demand.

A group of 10 banks is in discussions with semiconductor firm Micron Technology for a NT$80bn ($2.5bn) loan to back its acquisition of Taiwan’s Inotera Memories.

Solera Holdings’ $3.9bn debt acquisition package has been reduced, following insufficient demand for the $2bn-equivalent bond’s euro tranche.