Loans and High Yield

The past week has brought no sign of leveraged loan new issuance in either the US or Europe, and several deals have struggled in syndication.

There was positive news for the European high yield secondary market last week as it posted its largest total return since October 2015.

Tata Steel has received a new commitment at the senior level for its $1.5bn refinancing, with banks yet to join in general syndication.

Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has received commitments worth $150m for its loan of up to $200m ahead of the deadline of February 26.

Evergrande Real Estate Group said on Monday that it has received the requisite consent from bondholders to relax terms on two of its outstanding dollar bonds.

Rating agency Moody’s on Friday added its voice to those of analysts and investors in London and Madrid asking for details on Abengoa’s debt reduction.

Five banks have opened into senior syndication a $455.75m facility that will back Baring Private Equity Asia’s proposed acquisition of Singapore-based Interplex Holdings.

Insurance claims processor Solera Holdings has just three more days of roadshowing to persuade investors to get involved in its $4bn bond and leveraged loan financing, with the jury out on whether a strong week of meetings in the US can trump the torrid time the company had when courting investors in Europe, write Max Bower and Victor Jimenez.

The shrinking of balance sheets has become a common theme in recent years, particularly in the financial sector. Investors are punishing banks that are either unwilling or unable to implement a more conservative financial strategy.

The secondary market for European leveraged loans has had a tough February, with wider market volatility dragging down prices every day of the month so far.

High yield bankers insist that the European market will not be paralysed by some of the banks holding debt they have been unable to sell, even after the failure of last week's €1.55bn financing for LeasePlan.

Saverglass, the French bottle maker, has allocated its €365m loan at tight pricing with syndication not proceeding past the early bird stage.