Loans and High Yield

Market volatility and investor uncertainty meant the Asian dollar bond market was heavily skewed towards investment grade deals in the first quarter of 2015. But the next three months could look very different. Many bankers are counting on a recovering Chinese property sector and a surge in bank capital trades to revive the high yield market, writes Narae Kim.

Indomobil Finance Indonesia is set to return to the market for a $100m three year facility. The company has picked three mandated lead arrangers and bookrunners, who plan to launch it into general sometime next week.

Moody's and Fitch on Monday gave Towergate Insurance new ratings of B3/B-, after it completed its 60% debt write-off and recapitalisation.

Royal Dutch Shell’s £47bn agreed takeover offer for BG Group, the UK gas exploration and production company, will include a £13.1bn cash component. Bank of America Merrill Lynch is the original lender, mandated lead arranger and facility agent on the deal.

The stars are not aligning for mezzanine loans in leveraged finance this year. While investors would still love to play, they are being pushed out as borrowers have too many cheaper options.

The Association for Financial Markets in Europe’s high yield division has written to the European Commission, calling for a major reform of insolvency legislation as part of its drive for Capital Markets Union.

German plastic film maker Kloeckner Pentaplast has launched an €831m-equivalent loan in dollars and euros to refinance debt and pay a dividend.

Aircraft leasing company AerCap has refinanced a $1.1bn term loan facility after American International Group announced plans to sell its stake in the company.

Siaci Saint Honoré, the French insurance broker, hopes to tighten pricing on a €285m acquisition loan and then allocate the facility by Thursday.

More US companies are expected to issue in Europe's high yield market in the coming months, bankers say, attracted by the euro's record low interest rates.

Privately-owned Indonesian palm oil producer Royal Industries has extended the deadline for commitments to its $500m dual tranche fundraising.

Philippine National Bank’s (PNB) $150m three year fundraising has attracted four banks in senior syndication.