Loans and High Yield

While almost all financial markets have been stricken with fear so far this year, Europe's leveraged loan market has been surprisingly buoyant, with a healthy flow of deals and plenty of interest from investors — though the sister high yield market is a desert. Max Bower and Victor Jimenez report.

As WTI and Brent crude oil prices slip down below $30, high yield analysts are pointing at Spain’s oil producer Repsol as the first European company that could cross over into the sub-investment grade market.

China’s Haier Group is expected to use bank loans to fund up to $3.3bn of its forthcoming $5.4bn acquisition of US-based GE Appliances. Bankers have predicted an onshore China takeout, but the fundraising structure has not yet been disclosed, reports Shruti Chaturvedi.

The Chinese Panda bond market has gone from strength to strength since its revival last September with the Province of British Columbia (BC) becoming the latest to issue, raising Rmb3bn ($456m) on Thursday. While plenty more sovereign and financial deals are being lined up, the future does not look bright for red chip companies. Carrie Hong and Rev Hui report.

Chinese property developers could face rating downgrades if the renminbi continues to fall, according to Standard & Poor’s.

Veritas Technologies, the US software firm that Carlyle Group is buying from Symantec, will aim to complete a revised $7.4bn sale next week after failing to secure financing in November.

Tata Power subsidiary Bhira Investments is understood to have mandated six banks to arrange a refinancing of a $460m loan wrapped up in October 2014.

Italian investment manager Anthilia Capital Partners expects to close a €230m fund to buy domestic corporate minibonds early in February, a move that could entice players outside Italy to participate.

The former head of Asia Pacific loan markets at Royal Bank of Scotland is expected to join Maybank next week, according to two sources.

Kaisa Group Holdings has dismissed a counter proposal by a group of bondholders over the potential restructuring of the Chinese property developer’s offshore debt.

Armacell, the German foam insulation manufacturer, has launched a€660m debt acquisition package to back its buyout by Blackstone and Kirkbi from Charterhouse Capital Partners.

Société Générale has appointed a new head of EMEA loan syndicate, after promoting the former head to a senior job in risk management across the corporate and investment bank.