Reorg on the Record: 2022 starts with a flurry of high-yield bonds and leveraged loan deals…(01/19/22)
Written by Julie Miecamp, Managing Editor, Europe || For junk-rated debt investors the new year has started with a flurry of high-yield bonds and leveraged loan deals from repeat issuers. As market conditions in Europe remain benign due to government and central bank support, investors have been buying into well-known single B credits.
Distressed debt investors have a dearth of new opportunities to consider, although some have been busy with existing negotiations. Creditors rejected a draft plan submitted by Spanish real estate servicing company Haya Real Estate before Christmas. The deal aimed at tackling the company’s 2022 maturities. Debtholders worried that the group’s debt would be left in a less favorable position under the proposal. There has been trading in commodities merchant ED&F Man’s $1.3 billion multicurrency secured term loan and RCF before the holiday. The company and its lenders are working on a deal expected to feature an amend and extend of the term loans and RCF and some $300 million in new money from lenders in exchange for the elevation of a portion of their debt.
Regards,
Julie Miecamp
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Our European teams are working tirelessly to bring clients the most in-depth reporting and analysis of more than 2,100 performing, stressed and distressed credits in the region. Below is a glimpse into our editorial offering:
- Banco Sabadell managed to offload a €13 million portion of Spanish fashion retailer Pepe Jeans’ term loan in late December in the low 60s, sources said. The sale comes as the retailer’s parent aims to “significantly improve [its] financial forecast for March 2022,” upping its EBITDA expectation for the year ended March 2022 by 25%. Continue reading
- Spanish real estate servicing company Haya Real Estate submitted a draft restructuring proposal aimed at addressing the company’s 2022 maturities in the build-up to Christmas, but it was dismissed by bondholders’ advisors, sources told Reorg. The proposal was rejected over concerns that the group’s debt would be left in a less favourable position under the proposed new structure without giving creditors anything substantial – such as an equity injection. Continue reading
- UBS and BNP sold a $150 million piece of commodities merchant ED&F Man’s $1.3 billion multi-currency secured term loan and RCF before Christmas, sources told Reorg. The company and its lenders are working on a restructuring deal, which is expected to feature an amend and extend of the term loans and RCF and the provision of $300 million in new money from existing lenders in exchange for the elevation of a portion of their debt. Continue reading
- Telecommunications services and media company United Group is marketing €580 million 2030 senior secured fixed rate notes (SSNs) and €400 million 2029 senior secured floating rate notes (SS FRNs) to repay its €630 million senior secured fixed rate bridge facility and €350 million senior secured floating rate bridge facility in connection with the acquisition of Wind Hellas, which was announced in August 2020 and completed last week. Continue reading
- Wella is pre-sounding funds over a $1.8 billion equivalent cov-lite term loan B to refinance $1.2 billion of debt and pay shareholders KKR and Coty a $989 million dividend. The global hair products and beauty group has already pre-placed a $300 million-equivalent holdco PIK and a $300 million RCF as part of the deal, sources told Reorg. Continue reading
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