Loans and High Yield

Specialist transmission manufacturer Renk is marketing a high yield bond offering this week, testing the market’s capacity for companies in cyclical sectors — though marketing for the five year issue leans heavily on the company’s stable military and servicing contracts.

Taipei-listed Eternal Materials Co has mandated Taipei Fubon Bank for a loan to support its business in Malaysia.

A handful of Indian financial institutions have become the latest fallen angels, as pressure on the country’s economy and firms’ asset quality rises.

Indonesian property bonds have taken a hit in the secondary market, following growing concerns that Modernland Realty will default on a bond due in July.

Asif Sherani and Souhail Mahjour are taking on additional responsibilities in HSBC’s debt capital markets syndicate team.

The Italian arm of Fiat Chrysler Automobiles has signed a €6.3bn credit facility with backing from a state agency, months after the embattled car maker signed a multi-billion euro bridging facility.

AMS, the Austrian sensor maker, failed on Friday to complete its €1.3bn bond issue in euros and dollars, and has been forced to postpone it a second time. The deal was originally priced on Thursday afternoon but execution was then halted by a rash of news reports at around the same time, alleging that its executives were being investigated over trading in the company's shares.

Cambodian casino company NagaCorp sold a new dollar bond – and only the second from the country – this week, raising $350m.

China Aoyuan Group used up the last of its debt issuance quota this week to raise $460m from the bond market.

CNQC International Holdings, a real estate developer, is tapping the Hong Kong market for a $150m club loan

Profine, the German PVC window and door maker, made its debut in the wholesale capital markets this week, printing one of the highest yielding bonds seen in euro senior secured format at 9.25%. It opted for this route rather than a unitranche loan to refinance its main debt facility with Commerzbank, which matures at the end of the year.

Banks sitting on €8bn of underwritten debt to finance Advent and Cinven’s buyout of ThyssenKrupp Elevator finally hit the ‘go’ button early this week, unveiling the takeout for the largest European LBO financing in more than a decade. Pre-marketing and pre-placement have helped derisk the exit, but documentation is as weak as on any deal in the pre-Covid market, making the financing a crucial test for the strength of any post-crisis investor resistance, writes Owen Sanderson.