Loans and High Yield

The iBoxx non-financials index may have widened 20bp since March, but market participants appear glad of it. Europe’s corporate bond market is healthy and wide open for riskier deals.

Venetian Macau has exercised an accordion feature that was included as an additional component of a $1.5bn six year facility it wrapped up in February 2014.

Duniatex subsidiary Delta Merlin Dunia is seeking a $250m dual tranche financing in senior syndication. The Indonesian company is offering banks generous margins, based on a leverage grid.

Unrated Italian power generation machinery company Ansaldo Energia's first corporate bond was particularly popular with domestic investors on Tuesday.

The largest telecoms company in southeast Europe, United Group, on Tuesday sold a €150m tap of its €475m bond offered in 2013 to fund its acquisition by KKR.

As part of Nomad’s acquisition of Iglo, lenders for an outstanding €1.2bn loan have been asked to consent to a change in the company's control.

Quantitative easing is having a marked effect on Europe's high yield market, most bankers and investors agreed. But far from enabling new companies to access the capital markets, it is mainly benefiting established issuers by giving them cheaper interest rates.

Kaisa Group Holdings became the first Chinese property company to default on its offshore debt when it announced on Monday that it had failed to pay $51.6m of coupons on two of its outstanding dollar bonds. The news barely made an impact on secondary prices, as the default had been well flagged, but markets should not relax yet. Kaisa may not be an isolated case.

Indonesia’s Bumi Serpong Damai managed to price its first international on Monday but was hampered by a long past default by one of its sister companies. Bankers say the issuer could have done better in terms of pricing and size had it not been for investor concerns about the ownership risk.

Investors were sanguine about Kaisa Group Holdings becoming the first Chinese property company to default on its offshore default on this week, with the expected news barely creating a ripple in secondary markets.

Focus Media has signed a loan of $1.4bn with a club of three banks ahead of a proposed A share listing. The company has also prepaid lenders that participated in a $1.525bn leveraged buyout loan it raised in 2013.

Progroup, the German family-owned container and corrugated board producer, on Monday announced its debut high yield bond, part of a €525m refinancing deal that includes €125m of PIK toggle notes.