Loans and High Yield

Hong Kong Tian Yuan Manganese International Trade, which sent out invitations for a $150m loan this week, is now understood to have cancelled the transaction after second thoughts on the impact of a weaker renminbi.

Tata Steel’s attempt to cut pricing on a $1.5bn portion of a loan completed in 2014 has met resistance from lenders, who are concerned about the outlook of the company’s sector. With the borrower also understood to be looking at tweaking covenants, the transaction is proving to be a test of client-bank relationships. Shruti Chaturvedi reports.

A $165m triple-tranche loan for CVC-sponsored Asia Education Investment has been allocated, with three lenders joining during general syndication. The response was considered muted by some but the leads said they only had a limited portion to sell down to begin with.

Bankers had predicted a splurge of corporate bond issuance for this week, but as of Tuesday primary market activity was quiet. A pair of Spanish issuers made up the sole supply on Monday, with Iberdrola and Telefonica selling benchmark trades. They were followed on Tuesday by a benchmark from Swisscom, and a smaller trade from Finnish real estate company Citycon.

British largest off-license chain Conviviality Retail has agreed to buy drinks wholesaler Matthew Clark Holdings with funds from £80m of term loans and a £130m share placing.

Akelius Residential Property, the Swedish property group, was the only borrower roadshowing on Tuesday for a speculative grade bond in Europe, but bankers said investor feedback was positive.

FBD Holdings, the unrated Irish insurance company, told investors in August it would be exploring the option of a bond offering before Solvency II regulations take effect next year, but Irish news media report the deal has been shelved.

Tata Steel’s plans to reprice a portion of a $3.1bn loan it closed in 2014 has hit roadblocks, with some lenders on the original syndicate pushing back on a steep price cut. The rebellion is reassuring and shows that despite thinning margins, credit fundamentals are not being overlooked by syndicated loans bankers.

Fixed income manager BlueBay on Monday announced new direct lending appointments, as it expects current market volatility and low yields to drive investors into private placements.

Tata Steel’s attempt to reprice a portion of a $3.1bn loan sealed in 2014 has run into delays, which bankers are attributing to a lack of communication by the borrower as well as concerns about the steel sector. This has prompted some lenders to rethink what a reasonable cut on pricing would be.

Syndication for a $274m loan for Indian pharmaceutical company Strides Arcolab is under way, with one lender at the helm. The proceeds are for the company’s acquisition of Aspen’s generic pharmaceutical business in Australia.

Citic Capital Holdings has wrapped up its latest fundraising at HK$3bn ($387m), higher than the launch size of HK$1.80bn thanks to solid demand. The outcome was largely predicted by bankers as the company’s previous loan too was oversubscribed.