Emboldened by Federal Reserve backing, companies owned by private equity firms are looking to get in on the global rally in the credit market.
Surgery Partners Inc., which is majority owned by Bain Capital, is bringing just the fourth U.S. leveraged loan in the past month, while Verisure Holding AB, a Swedish security systems maker owned by Hellman & Friedman, reopened Europe’s high-yield market Thursday with the first deal in nearly two months.
Just a week after the Fed said it would expand its bond-buying program to include some junk-rated securities, sponsored companies are the latest to capitalize on a supercharged credit rally. Bankers have been
The U.S. market was quicker to thaw, but European investors are now showing readiness to take bigger risk as the coronavirus may be peaking in hard-hit countries like Italy and Spain. Some of the companies most affected by the virus continue to
Surgery Partners has total leverage above 10 times and could potentially see negative earnings this quarter, according to
“We are certainly in a place where risk is more palatable than it was a few weeks back,” said
Verisure is ending Europe’s worst junk sales
In Europe, “we have yet to see the harder deals for companies that need additional liquidity to make it through,” said
There are some safer offerings in the U.S. market Thursday too, including Costco Wholesale Corp. Junk bonds are estimated to take in another large
- For deal updates,
click herefor the New Issue Monitor
- Wall Street banks are lending billions of dollars to desperate companies these days, like Marriott and concert producer Live Nation Entertainment. Now, a host of those companies are turning around and asking the banks to
waive or loosenfinancial markers that help ensure the debt will be paid back
- For more,
click herefor the Credit Daybook Americas
Verisure intends to use deal proceeds to repay revolving credit facility drawings, according to an offering memorandum seen by Bloomberg News. JPMorgan Chase & Co., Goldman Sachs Group Inc., Deutsche Bank AG, Morgan Stanley and Nordea Bank Abp are arranging the sale.
- Marketwide primary market activity has
slowedThursday, with just four deals offered, including a Telstra 500 million euro 10-year note. The deals should push weekly sales volume beyond 20 billion euros
- The cost to insure euro IG company debt against default
fellafter surging more than 9% on Wednesday
- A former senior portfolio manager and founding partner at CVC Credit Partners is forging ahead with plans to
launch an investment firmfocused on credit markets. Jonathan Bowers and a team of banking colleagues set up Acer Tree Investment Management LLP at the end of 2019 and plans to start operating in early May
- Low-cost airline
EasyJetPlc has secured 400 million pounds ($500 million) of loans against its jet fleet, with talks also underway to raise as much as 550 million pounds from selling planes to leasing firms as it seeks to boost cash reserves
Primary market issuance stayed quiet on Thursday, with just
- The scale of the recovery task facing China’s policy makers will be laid bare Friday when first quarter gross domestic product data is expected to show an historic slump
--With assistance from
Larry Reibstein, Allan Lopez
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