Loans and High Yield

German wheelchair maker Sunrise Medical’s €315m acquisition loan has begun trading in secondary markets after being priced in line with initial guidance.

The European high yield market has gone through two weeks of stagnation due to the Greek debt crisis, and has fallen short of the volume produced over the first half of last year — but 2015’s second half looks reassuring.

The pipeline for offshore Indian loan syndications is showing signs of life, with opportunistic corporate refinancings and more borrowing by housing finance companies pushing dealflow. Bankers expect the second half of the year to be busier than a very quiet first six months, writes Shruti Chaturvedi.

A €600m ($663m) two year financing for China National Chemical Corp (ChemChina) has been opened into syndication. Two French lenders are leading the deal and they have invited a select group of banks to participate.

Philippine oil refining company Petron Corp has lined up seven banks to lead its $550m refinancing loan. The deal is likely to go into further syndication sometime in August, according to a source.

Garfunkelux Financial Services, a German debt collection company, on Wednesday became the first European company to break the ice in the mainstream euro high yield market by starting a roadshow for a €365m deal.

Stahl, the Dutch provider of chemicals for leather processing, has launched €585m of leveraged loans to refinance debt and pay a dividend.

SoftBank Group on Wednesday began roadshowing for euro and dollar bonds, even though the European high yield market has been at a standstill for two weeks while Greece negotiated its third bailout.

Vive la France! Tuesday’s national Bastille Day holiday obviously did Aéroports de Paris some good, as on Wednesday morning it reopened Europe’s mainstream investment grade corporate bond market after a fortnight’s shutdown.

CVC-sponsored Asia Education Investment is in the market for a $165m triple tranche facility, part of which will be used to recapitalise the major shareholder.

Ping An Real Estate issued the first offshore renminbi (CNH) bond in three weeks on July 14, making it the first borrower to test appetite since the Greek referendum. Although the issuer had to offer a decent premium to get the deal done, the level was flat to its onshore funding costs.

High yield borrowers continue to hold back deals and avoid paying steeper issue premiums than they would have faced before the latest Greek crisis, but the new bailout offer is easing fears.