Loans and High Yield

Just when markets usually wind down for summer, they are winding up, after weeks of Greece-induced torpor. Europe’s corporate bond market is swinging back into action, but while investment grade issuers are taking it slowly, high yield is ablaze with 12 deals.

Die casting machine manufacturer LK Machinery Co has launched syndication for an HK$600m ($77m) three year amortising loan, picking HSBC and United Overseas Bank to arrange the deal.

Telenet, Belgium’s largest cable operator and a subsidiary of Liberty Global, issued a €530m high yield bond on Tuesday, to refinance its 6.375% 2020 bond.

DomusVi, the French operator of private care homes for the elderly, announced on Tuesday a €125m tap of its subsidiary HomeVi’s only high yield bond, as it is acquiring Geriatros from private equity fund Magnum.

After its parent company Altice zipped through the leveraged loan market with a refinancing of revolver drawdowns last week, Numericable, the French cable company, has followed with a similar deal.

Singapore listed property developer Oxley Holdings has launched an S$110m ($80m) two year bullet into the market. The company has picked one bank to arrange the financing, which offers a margin that steps up based on time elapsed.

Tata Steel is looking to reprice a $3.1bn refinancing it sealed in 2014 and has asked banks on that deal for feedback. Although the loan is not performing remarkably in secondary, the company will be able to cut costs thanks to its solid banking relationships, said a source who worked on the 2014 borrowing.

Cellnex Telecom, the broadcasting tower business floated by Abertis Infraestructuras in May, marketed and sold its first bond issue on Monday, raising €600m.

German debt collector Garfunkelux issued a €365m high yield bond on Monday, becoming the first in the mainstream, public euro high yield market since June 24.

Swiss travel retailer Dufry began roadshowing on Monday its €500m high yield bond, part of the financing package to support its buyout of World Duty Free.

Leveraged loans of €725m backing the merger of French private healthcare groups Vedici and Vitalia are being marketed at a bank meeting today.

Citi has hired a high yield and distressed salesperson from Barclays to its Europe, Middle East and Africa loan sales business in London.