Loans and High Yield

Jaguar Land Rover, whose February bond issue was one of the first casualties of the coronavirus pandemic in the capital markets, has brought its first bond issue since, strengthening bond terms with a ‘springing lien’ protecting investors against future priming debt.

Dürr, the unrated German mechanical and plant engineering firm, is guiding investors on its final day of marketing towards it issuing a €250m bond with a yield aligned to issuers in the double-B ratings bracket.

The €875m acquisition loan for EQT Infrastructure’s purchase of French care home operator Colisée will come with a reduced original issue discount and at the tight end of guidance, but the buyout firm has conceded a ticking fee, as the deal must compete with secondary markets, which are still largely priced at a discount.

Indian borrowers are finally returning to the offshore loan market after months of little to no action. But even as a pipeline builds, bankers remain wary of challenges around execution. Pan Yue reports.

Chinese property company Agile Group Holdings raised $300m from its Wednesday bond sale, but found less investor support than excepted.

European credit markets recorded no fallen angels in September — the first month of the Covid crisis that this has occurred, according to credit strategists at Bank of America — and few corporates are now at immediate risk of a slide out of investment grade.

NatWest plans to contact around 3,500 of its corporate clients from Thursday to inform them about the end of Libor as a benchmark and what their options and next steps are, as a recent survey showed that the vast majority of companies have not made any tangible efforts towards moving debt facilities to risk-free rates.

Sheng Ye Capital, a Hong Kong-listed financial services provider, has made its debut in the syndicated loan market. It is raising funds in offshore renminbi.

US private placement market insiders fear a round of early prepayments, as companies look to wriggle out of the straightjackets of financial covenants and issue public market bonds instead. Amendments brokered at the start of the coronavirus pandemic are up for review now, and sources think these talks will involve tough conversations between borrowers and lenders.

Rolls-Royce started marketing the bond leg of a multi-product recapitalisation and refinancing package on Monday, preparing an offering of more than £1bn-equivalent across three currencies.

Almost two thirds of companies are still unprepared for the transition away from Libor, as lenders in London say they are in “intensive” discussions with clients about the switch to risk free rates.

International SOS, a Singapore-based emergency medical assistance provider, is making its debut in the syndicated loan market for $320m.