By Owen Sanderson
01.30 PM
Another heavy primary week in European leveraged finance swung into action on Monday, with the bond leg of the buy-out financing for Bain and Cinven’s Sfr4.2bn purchase of Lonza Specialty Chemicals among the highlights.
Deutsche Bank is left lead and sole physical on the $350m seven year non-call three secured notes and €460m eight year non-call three unsecured the latter stretching the boundaries of normal LBO structures with a Caa2/CCC+ rating out of the gate.Though it’s usual to structure down
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By Owen Sanderson
11.45 AM
Investors appeared happy to tolerate soaring leverage in favoured sectors, such as tech or pharma, on Thursday, while Covid-19 recovery candidates are beginning to look expensive, as much of the rally that began in November has played out.
Unit4, a software-as-a-service (SAAS) company, is marketing a €675m term loan at a spread of 400bp-425bp and a price of 99.50, to finance its takeover by a consortium led by TA Associates.The loan carries B3 and B- ratings from Moody’s and S&P, meaning it is not in
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By Owen Sanderson
02.15 PM
UK gym chain Virgin Active’s restructuring could set a precedent for restructurings of UK retailers. Dozens of retailers have used ‘CVA’ processes to cut their debt burdens, which typically hits their landlords hard but leaves other creditors unscathed. Virgin Active is instead using the new UK ‘super scheme’ restructuring law introduced last year to try to bind landlords and other creditors alike into accepting writedowns.
The new UK law was heralded last year as a potentially huge leap forward (though some were critical of its provisions), adding new tools to the armoury of restructuring professionals, and giving companies more flexible options to manage their capital structures in distress. It was colloquially called
By Owen Sanderson
01.00 PM
German TV shopping network HSE is preparing a new high yield bond to refinance its existing unitranche debt and pay owner Providence Private Equity a dividend.
The deal joins a hectic market which saw five new bonds announced on Monday and two on Friday for execution this week, while Herens, Bain and Cinven’s buyout of Lonza Specialty Chemicals, is set to launch soon.HSE is marketing €630m of 5.5 year fixed and floating
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By Owen Sanderson
12.45 PM
Last week’s heavy levfin supply hasn’t produced a pause for digestion, with five new high yield bonds on Monday joining two announced on Friday for execution this week, despite some recent supply trading down in secondary. Last week’s bond deals have not all been slam-dunk successes in the secondary market. Dufry and Nexi are trading down MarketAxess BondTicker was showing 99.35 for Dufry’s 3.375% 2028 and 99.625% for Nexi’s 2.125% 2029 on Monday morning, having been priced at par on Thursday. But this might
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