European Chart of the Week: High yield bonds backing M&A/LBO financings increase in September

share
Header image

European Chart of the Week: High yield bonds backing M&A/LBO financings increase in September

share

EMEA Chart of the Week: 16th September 2020

High yield bond issuance has picked back up after a quiet month of August in which only a single deal worth roughly EUR 96m priced for Norwegian investment company Kistefos. At EUR 5.6bn, high yield bond issuance is off to a strong start in September, with an additional EUR 400m deal for Maxeda currently working its way through the market. The outlook for further deal flow is positive, and the recent wave of transactions pushes year-to-date issuance to EUR 61.6bn, up 5% from the year-ago figure of EUR 58.8bn.

Another positive note has been the uptick in M&A-related financing activity, though this is thanks entirely to the EUR 2.7bn-equivalent multi-currency senior secured notes backing Virgin Media and O2’s recent joint venture. The financing, comprised of a GBP 600m 8.3-year tranche paying 4%, a EUR 950m 10.3-year tranche paying 3.25% and a USD 1.35bn 10.3-year tranche paying 4.25%, pushed 2020 M&A/LBO volume to EUR 13.7bn, up 34% from last year’s EUR 10.2bn.

Aside from the jumbo joint venture, eight additional deals totaling EUR 2.8bn have priced so far this month, largely for refinancing purposes. Some notable examples include Altice France’s multi-currency senior secured note offering and SNF Floerger’s dual-tranche unsecured note to refinance existing debt.

Also expected to price this week is a EUR 400m six-year senior secured note offering from Maxeda, the Benelux focused DIY retailer, with proceeds set to redeem existing notes. 

To be used for the internal business of the assigned users only. Sharing, distributing or forwarding the entirety or any part of this article in any form to anyone that does not have access under your agreement is strictly prohibited and doing so violates your contract and is considered a breach of copyright. Any unauthorized recipient or distributor of this article is liable to Debtwire for unauthorised use and copyright breach.

By Vincent Daigger 

EuropeBonds & Loans Published: 17 September

Debtwire Product Trial

Get these unique insights and more with Debtwire

Debtwire gives fixed income professionals an edge in leveraged finance, distressed debt and direct lending.

Request Trial

Debtwire Events
Debtwire transformed the market and quickly became the leading provider of expert news, data and analysis on global leveraged credit. With global breadth and local depth, our end-to-end coverage goes behind the scenes from primary issuance to the first sign of stress through restructuring and beyond. Subscribers trust Debtwire – the pioneer in the industry – for comprehensive coverage across geographies, companies and asset classes. Backed by Debtwire’s team of experts and award-winning content, our events offer attendees an unrivaled perspective.
Copyright © 2021 Mergermarket Ltd. All rights reserved