Loans and High Yield

Look at any bank’s website or hear its CEO speak and you will get a torrent of virtuous words about climate change, sustainability and supporting clients on their journeys to net zero. The same goes for big investors, from BlackRock down, but the windows of their ivory towers are misted up with all the hot air being spouted.

High yield market darling Ardagh has joined in with the SPAC fever sweeping capital markets, announcing on Tuesday the merger of its drinks can business with a SPAC sponsored by billionaire Alec Gores. The combined business wasted no time in launching the debt finance for the deal, with a $2.3bn-equivalent four tranche green bond following on Thursday.

Aston Martin has launched a £70m-equivalent tap of its $1.085bn 10.5% notes, which have been trading more than nine points higher than when they were priced last year in the teeth of market volatility leading into the US presidential election.

Philippines’ SMC Global Power Holdings, the power unit of conglomerate San Miguel Corp, has returned to the loan market for $200m.

Private equity firm Blackstone has launched into syndication a $360m loan that will support its leveraged buyout of India’s Piramal Glass.

Guangzhou R&F Properties Co made a rapid return to the debt market this week for a $325m bond that proved popular with investors in the primary and secondary markets.

Banks arranging private placements in Europe have started weighing up bringing companies from the financial sector to market, amid a deal drought from the corporate borrowers which are the usual staple fare.

Victoria plc, the UK listed carpet maker, is marketing a new bond with most of the proceeds earmarked for cash on balance sheet, an unusual move in the high yield market, where deals are typically aimed at refinancing or specific corporate actions. The company says it will be on the hunt for acquisition opportunities, funded by the Koch Brothers’ preferred equity injection last year as well as the new debt.

China Aoyuan Group had to pay up to sell a $350m bond on Monday, as investors demanded compensation for the property company’s low rating and the deal’s long tenor.

Online travel agency Hostelworld has signed a five year €30m secured loan facility with HPS Investment Partners, the asset manager headquartered in New York.

Listed real estate firm CPI Property is repaying a portion of its Schuldschein early at par, taking advantage of favourable legal conditions in Germany regarding early prepayments of floating rate loans. Sources say other companies may use this option if funding conditions remain so attractive in public markets.

Indonesian real estate company Modernland Realty is still finding a way to tackle its debt situation, and has asked for another payment moratorium.