By Owen Sanderson
12 Apr 2021
Pimco has declined to call three RMBS issues where it is the option holder, despite broadly supportive marketplace conditions which would allow new financings to be structured and sold. Last year saw issuers including NewDay and TwentyFour skip call dates, due to the chaos wrought by the pandemic, which made a refi at reasonable spreads impossible. Missing a call for pure economic advantage, by contrast, is extremely rare in European securitization. The deals in question are Jepson Residential 2019-1, Shamrock Residential 2019-1, both Irish legacy mortgage deals, and Rochester Financing No. 2, a legacy UK non-conforming RMBS. Pimco is understood to have bought equity and call rights to the first two deals in the secondary market, from original sponsors
By Owen Sanderson
01.15 PM
With holidays and earning out of the way and markets wide open, four new high yield bonds and two big term loans hit the market on Monday, constituting more than $11bn of internationally-targeted supply in total, with more than €4.5bn of euros in the mix. The two biggest beasts in European leveraged finance are both out with multi-billion deals. Liberty Global unit UPC is following last week’s $1.25bn 10 year non-call five bond with a $2bn and €800m 2029 term loan, refinancing existing debt and adding in new sustainability-linked features, while Altice France
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By Owen Sanderson
08 Apr 2021
TI Fluid Systems, an auto parts company, is marketing its first unsecured debt, a €600m eight year non-call three, which it plans to use to repay part of its secured debt. It has also launched repricing on this loan, looking to cut margins and reset Euribor floors to market standard levels.
Barclays, Deutsche Bank and JP Morgan are leading the B3/B+ bond offering, launched on Tuesday, while JP Morgan is the sole physical bookrunner on the loan repricing.
Talk on the bonds is mid-4%.The plan for the loans was to cut the size of the facilities from $738m
By Owen Sanderson
08 Apr 2021
Record levels of resets in the CLO market on both sides of the Atlantic are helping NorinChukin Bank, once the anchor investor for many triple-A tranches, slim down its investment portfolio in the asset class. Fortunately, new big buyers are stepping up at the top of the capital structure, and on less onerous terms than NoChu demanded. NorinChukin was once by far the largest buyer of CLO triple-As in dollars and euros alike, effectively anchoring the whole market in the first months of 2019, as it recovered from the jitters of late 2018. The Japanese bank amassed more than $70bn in the asset class, earning
By Owen Sanderson
08 Apr 2021
Röhm, the renamed Evonik Specialty Chemicals, is back in the market looking to refinance its 2026 €997m term loan B near par, following a surprisingly strong performance through 2020.
Syndication of the original buyout loan in 2019 was botched, with investors balking at what they saw as an overly cyclical business marketed on aggressive leverage multiples.GSO had originally offered a staple financing to support Advent’s acquisition of the unit from the parent Evonik, which would
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