Guizzo
Nuovo forumer
nella mia ignoranza chiedo se questi loans ai paesi emergenti sono generalmente a tasso fisso o sono invece esposti al rischio tassi e suppongo anche che siano quasi tutti in USD?
Portafogli e Strategie (investimento) Dall'High Yield al Flight to Quality ... (Vol. IV): Cash is King
- Creatore Discussione Imark
- Data di Inizio
- Stato
nella mia ignoranza chiedo se questi loans ai paesi emergenti sono generalmente a tasso fisso o sono invece esposti al rischio tassi e suppongo anche che siano quasi tutti in USD?
Imark
Forumer storico
In realtà, molti sono stati accordati da banche europee a società operanti in paesi dell'area europea orientale ... almeno a prendere per buono il dato postato da Salmon nel primo dei due interventi riportati...
Poi però ci sono i loans alle operazioni di LBO, e qui il discorso cambia, nel senso che soltanto l'ultimissima tornata di finanziamenti a queste operazioni, quella partita in primavera 2007 e rimasta in larga misura congelata dalla "gelata" abbattutasi sull'HY nell'estate 2007, comprendeva oltre 700 mld USD in loans, e arrivava dopo analoghe ondate prodottesi nel 2005 e nel 2006.
Degli ultimissimi, dubito siano stati cartolarizzati, ma tutti i precedenti senz'altro sì...
I leveraged loans sono tipicamente a tasso variabile, sia quelli in USD che in altre valute...
Guizzo
Nuovo forumer
In realtà, molti sono stati accordati da banche europee a società operanti in paesi dell'area europea orientale ... almeno a prendere per buono il dato postato da Salmon nel primo dei due interventi riportati...
Poi però ci sono i loans alle operazioni di LBO, e qui il discorso cambia, nel senso che soltanto l'ultimissima tornata di finanziamenti a queste operazioni, quella partita in primavera 2007 e rimasta in larga misura congelata dalla "gelata" abbattutasi sull'HY nell'estate 2007, comprendeva oltre 700 mld USD in loans, e arrivava dopo analoghe ondate prodottesi nel 2005 e nel 2006.
Degli ultimissimi, dubito siano stati cartolarizzati, ma tutti i precedenti senz'altro sì...
I leveraged loans sono tipicamente a tasso variabile, sia quelli in USD che in altre valute...
quindi, se non ho capito male, per i prossimi anni al problema capacità di rimborso o capacità di rifinanziamento dei prestiti in scadenza si aggiunge quello di costi per interessi in probabile incremento, magari modesto ma pur sempre incremento rispetto a tassi ante 2007, nonchè quello eventualmente legato ad una svalutazione, questa però credo consistente, del dollaro.
Imark
Forumer storico
quindi, se non ho capito male, per i prossimi anni al problema capacità di rimborso o capacità di rifinanziamento dei prestiti in scadenza si aggiunge quello di costi per interessi in probabile incremento, magari modesto ma pur sempre incremento rispetto a tassi ante 2007, nonchè quello eventualmente legato ad una svalutazione, questa però credo consistente, del dollaro.
Sì, anche perché queste operazioni di LBO sono state concepite in partenza con leve molto alte... negli LBO il debito viene ricaricato sulle spalle della società acquisita... ebbene, il net debt/EBITDA preso in considerazione come esito dell'operazione era spesso nell'ordine dell'11-12x e talvolta anche superiore...
Ora é chiaro che tu puoi prendere anche la società con il business più solido del pianeta, e la ricarichi di macigni debitori enormi, il risultato é che quella schianta... e difatti con questa crisi é successo che l'EBITDA è sempre caduto, il debito spesso salito e la leva ovviamente è finita su livelli non più tollerabili, tali da violare i covenant che corredano i prestiti erogati dalle banche ...
Considera che nel 2006-2007 (finché è durata) questi prestiti venivano erogati con la formula dei covenant light (ossia pochi limiti a carico del debitore in termini di limiti al leverage o di copertura del debito da parte dei flussi di cassa generati ... FFO/net debt o FFO/interests ed altri analoghi...).
Tanto si partiva dall'assunto per cui debt is money: il credito si cartolarizzava, ed il rischio - teoricamente - si ripartiva sul mercato dei capitali.
Sappiamo in realtà che tutto questo meccanismo gonfiava i conti delle banche di affari, ma all'atto pratico non ripartiva una beneamata sega, in quanto le tranches più rischiose delle cartolarizzazioni finivano in veicoli societari fuori bilancio, del cui andamento tuttavia le banche si sono trovate di fatto a dover rispondere...
C'è il rischio incremento dei costi legato al tasso variabile, però io credo che disporranno (o almeno ci dovranno provare) meccanismi di gestione dei default di verie e proprie sacche di debito di poca rilevanza strategica (le finanziarie tipo SLM, CIT Group, GMAC: questo business non ha grande futuro, il business della intermediazione del credito negli anni a venire lo faranno tendenzialmente le banche IMHO, e non c'è grande spazio per altri soggetti) e questo potrebbe servire a contenere il livello dei tassi, distruggendo liquidità man mano che la si reimmette nel sistema...
Il che pure potrebbe consentire di evitare una svalutazione eccessiva del dollaro (forse, se il processo non scappa di mano). Lehman è stata una cavia, con GM hanno affinato notevolmente il processo (sgonfiare è meglio che fare scoppiare)... vedremo cosa faranno con le holding bancarie di comodo ...
Guizzo
Nuovo forumer
Sì, anche perché queste operazioni di LBO sono state concepite in partenza con leve molto alte... negli LBO il debito viene ricaricato sulle spalle della società acquisita... ebbene, il net debt/EBITDA preso in considerazione come esito dell'operazione era spesso nell'ordine dell'11-12x e talvolta anche superiore...
Ora é chiaro che tu puoi prendere anche la società con il business più solido del pianeta, e la ricarichi di macigni debitori enormi, il risultato é che quella schianta... e difatti con questa crisi é successo che l'EBITDA è sempre caduto, il debito spesso salito e la leva ovviamente è finita su livelli non più tollerabili, tali da violare i covenant che corredano i prestiti erogati dalle banche ...
Considera che nel 2006-2007 (finché è durata) questi prestiti venivano erogati con la formula dei covenant light (ossia pochi limiti a carico del debitore in termini di limiti al leverage o di copertura del debito da parte dei flussi di cassa generati ... FFO/net debt o FFO/interests ed altri analoghi...).
Tanto si partiva dall'assunto per cui debt is money: il credito si cartolarizzava, ed il rischio - teoricamente - si ripartiva sul mercato dei capitali.
Sappiamo in realtà che tutto questo meccanismo gonfiava i conti delle banche di affari, ma all'atto pratico non ripartiva una beneamata sega, in quanto le tranches più rischiose delle cartolarizzazioni finivano in veicoli societari fuori bilancio, del cui andamento tuttavia le banche si sono trovate di fatto a dover rispondere...
C'è il rischio incremento dei costi legato al tasso variabile, però io credo che disporranno (o almeno ci dovranno provare) meccanismi di gestione dei default di verie e proprie sacche di debito di poca rilevanza strategica (le finanziarie tipo SLM, CIT Group, GMAC: questo business non ha grande futuro, il business della intermediazione del credito negli anni a venire lo faranno tendenzialmente le banche IMHO, e non c'è grande spazio per altri soggetti) e questo potrebbe servire a contenere il livello dei tassi, distruggendo liquidità man mano che la si reimmette nel sistema...
Il che pure potrebbe consentire di evitare una svalutazione eccessiva del dollaro (forse, se il processo non scappa di mano). Lehman è stata una cavia, con GM hanno affinato notevolmente il processo (sgonfiare è meglio che fare scoppiare)... vedremo cosa faranno con le holding bancarie di comodo ...
Hai detto tutto tu, io non posso che quotare e ringraziare.
Vorrei aggiungere che per me svalutazione del USD e tassi crescenti - in ottica pluriennale - sono ormai ineludibili.
Se saranno in grado di controllarne l'andamento è la scommessa.
L'effetto domino è sempre dietro l'angolo.
TheLondoner
Forumer storico
concordo pienamente, vogliono eliminare il too big to fail, vogliono imparare a gestirlo per usarlo al momento giusto.
Le banche rimaste in piedi adesso vogliono creare un oligopolio per controllare in futuro il credito...ai tassi che vorranno...e a chi vorranno.
Forse anche per questo vogliono smarcarsi dagli aiuti del tarp..
Gmac sta facendo a gomiti per restare in vita...mi pare che cambierà anche nome...
Imark
Forumer storico
Altro bond HY arrivato sul mercato primario europeo, è un convertibile della vAG. Poca roba, circa 100 mln euro. Rating B+, recovery rating 6. Il business profile di Kloeckner (vedi grassettato infondo) rende palatabile anche questo tipo di operazioni...
Germany-Based Kloeckner & Co. €97.9 Million Senior Unsecured Convertible Bonds Rated 'B+'; Recovery Rating '6'
LONDON (Standard & Poor's) June 9, 2009--Standard & Poor's Ratings Services said today it assigned its 'B+' senior unsecured debt rating to the €97.9 million 6% convertible bonds due 2014, issued by Kloeckner & Co. Financial Services S.A. (KFS). KFS is a finance subsidiary of Germany-based metals distributor Kloeckner & Co. S.E. (Kloeckner; BB/Stable/--), which is guaranteeing the bonds. The recovery rating on these bonds is '6', indicating our expectation of negligible (0%-10%) recovery in the event of payment default.
The issue rating on these convertible bonds is two notches below the corporate credit rating on Kloeckner, reflecting its structural subordination to the liabilities of the group's operating subsidiaries, including the
drawings under the €300 million multicurrency revolving credit facility and €500 million debtor securitization facility.
At the same time, the existing €325 million 1.5% senior unsecured convertible bonds issued by Kloeckner & Co. Finance International S.A. (KFI) was affirmed at 'B+', two notches lower than the 'BB' corporate credit rating of the guarantor, Kloeckner. The recovery rating on these bonds is unchanged at '6', indicating our expectation of negligible (0%-10%) recovery in the event of a payment default.
RECOVERY ANALYSIS
The issue and recovery ratings on the senior unsecured convertible bonds issued by KFS and KFI take into consideration significant pricing pressure on a discrete asset sale, which we see as the most likely source of recoveries.
The ratings also take into account the potential for cross-jurisdictional insolvency issues, the high level of prior-ranking debt facilities, and other structurally senior unsecured claims.
Under our simulated default scenario, we believe Kloeckner would be sold as a going concern on account of its competitive market position and its strategic presence as Europe's leading independent metals distributor.
However, due to the nature of the metals distribution business, it is our view that the stressed enterprise value of Kloeckner is underpinned by its asset values. Accordingly, we have valued the business on a discreet asset valuation basis.
For full details of our recovery analysis, see article titled "Kloeckner & Co. S.E.'s Recovery Rating Profile," to be published shortly on RatingsDirect.
RATINGS LIST
New Rating
Kloeckner & Co. Financial Services S.A.
Senior Unsecured Debt* B+
Recovery Rating 6
Ratings Affirmed
To From
Kloeckner & Co. Finance International S.A.
Senior Unsecured Debt* B+ B+
Recovery Rating 6 6
*Guaranteed by Kloeckner & Co. S.E.
Germany-Based Kloeckner & Co. €97.9 Million Senior Unsecured Convertible Bonds Rated 'B+'; Recovery Rating '6'
LONDON (Standard & Poor's) June 9, 2009--Standard & Poor's Ratings Services said today it assigned its 'B+' senior unsecured debt rating to the €97.9 million 6% convertible bonds due 2014, issued by Kloeckner & Co. Financial Services S.A. (KFS). KFS is a finance subsidiary of Germany-based metals distributor Kloeckner & Co. S.E. (Kloeckner; BB/Stable/--), which is guaranteeing the bonds. The recovery rating on these bonds is '6', indicating our expectation of negligible (0%-10%) recovery in the event of payment default.
The issue rating on these convertible bonds is two notches below the corporate credit rating on Kloeckner, reflecting its structural subordination to the liabilities of the group's operating subsidiaries, including the
drawings under the €300 million multicurrency revolving credit facility and €500 million debtor securitization facility.
At the same time, the existing €325 million 1.5% senior unsecured convertible bonds issued by Kloeckner & Co. Finance International S.A. (KFI) was affirmed at 'B+', two notches lower than the 'BB' corporate credit rating of the guarantor, Kloeckner. The recovery rating on these bonds is unchanged at '6', indicating our expectation of negligible (0%-10%) recovery in the event of a payment default.
RECOVERY ANALYSIS
The issue and recovery ratings on the senior unsecured convertible bonds issued by KFS and KFI take into consideration significant pricing pressure on a discrete asset sale, which we see as the most likely source of recoveries.
The ratings also take into account the potential for cross-jurisdictional insolvency issues, the high level of prior-ranking debt facilities, and other structurally senior unsecured claims.
Under our simulated default scenario, we believe Kloeckner would be sold as a going concern on account of its competitive market position and its strategic presence as Europe's leading independent metals distributor.
However, due to the nature of the metals distribution business, it is our view that the stressed enterprise value of Kloeckner is underpinned by its asset values. Accordingly, we have valued the business on a discreet asset valuation basis.
For full details of our recovery analysis, see article titled "Kloeckner & Co. S.E.'s Recovery Rating Profile," to be published shortly on RatingsDirect.
RATINGS LIST
New Rating
Kloeckner & Co. Financial Services S.A.
Senior Unsecured Debt* B+
Recovery Rating 6
Ratings Affirmed
To From
Kloeckner & Co. Finance International S.A.
Senior Unsecured Debt* B+ B+
Recovery Rating 6 6
*Guaranteed by Kloeckner & Co. S.E.
Imark
Forumer storico
Ancora uno: è la volta di Ardagh Glass, issuer del comparto del packaging del quale pure si ebbe modo di parlare occasionalmente sul FOL. Il bond è un senior secured da 300 mln euro.
Soprattutto per quegli emittenti HY che non costituiscono un going concern (e dunque presentano un profilo di rischiosità dell'investimento ancora accentuato, specie in una congiuntura quale quella attuale) queste nuove emissioni sono secured (soprattutto negli USA, dove il ritorno degli emittenti HY sul mercato primario va avanti già da diversi mesi con maggiore intensità che in Europa), ed incidono sulla gerarchia dei bond già emessi, riducendone anche il recovery in prospettiva, nel caso in cui avvenisse il default dell'emittente.
[FONT=verdana,arial,helvetica]Moody's assigns (P)Ba3 to Ardagh's proposed EUR 300m Senior Secured Notes[/FONT]
[FONT=verdana,arial,helvetica]Frankfurt, June 12, 2009 -- Moody's Investors Service today assigned a provisional (P)Ba3 rating to Ardagh Glass Finance plc's proposed EUR 300 million Senior Secured Notes due 2016. [/FONT]
[FONT=verdana,arial,helvetica]The Corporate Family Rating (CFR) for Ardagh Glass Group Plc ("Ardagh" or the "Group") has been affirmed as well the ratings on the group's existing bonds (B3 for the EUR175 million Senior Notes due 2013 at Ardagh Glass Finance B.V., B3 for the EUR310 million Senior Notes due 2017 at Ardagh Glass Finance plc, and Caa1 for the EUR126.25 million Senior PIK Notes due 2015 at Ardagh Glass Group Plc). At the same time Moody's notes that LGD rates for these already rated bonds could change slightly once the final amount of issuance has been set and a definitive rating has been assigned to the proposed Senior Secured Notes. [/FONT]
[FONT=verdana,arial,helvetica]The affirmation of the CFR and existing instrument ratings is based on the expectation of a gradual recovery in earnings following a weak Q1 2009, which was impacted by lower volume and substantial restructuring expenses, and a stabilization of earnings in the second half of 2009 compared to 2008. Moreover, the ratings are based on the expectation of material positive Free Cash Flow generation in 2009 supported by an unwinding of working capital and reduced capex. Moody's will closely monitor Ardagh's operating performance and benchmark actual results against the expectations incorporated in the ratings. In case of notable deviation, downward pressure would arise on the ratings. [/FONT]
[FONT=verdana,arial,helvetica]The proposed EUR300 million Senior Secured Notes will rank pari passu with all existing senior secured debt of the Group, i.e. benefit from senior guarantees by the majority of the Group's wholly owned operating subsidiaries and from security interests in essentially all assets of the group. The collateral of the new Senior Secured Notes will comprise the same assets that secure the existing Group's Senior Secured Credit Facility with the exception of certain charges over land in Germany, which Moody's anticipates to provide only a marginally higher asset coverage to the Senior Secured Credit Facility relative to the new Senior Secured Notes. [/FONT]
[FONT=verdana,arial,helvetica]Ardagh plans to apply the expected proceeds of EUR300 million to refinance EUR150 million of existing senior secured term loans with a final maturity in 2014 and to repay outstanding amounts under the Group's senior secured revolving credit facilities. Purpose of the proposed bond issuance is to increase the Group's liquidity headroom for general corporate purposes and to pro-actively address future bank debt maturities with longer term capital markets debt. [/FONT]
[FONT=verdana,arial,helvetica]The proposed EUR300 million Senior Secured Notes will rank ahead of the existing Senior Notes issued by Ardagh Glass Finance B.V. and Ardagh Glass Finance plc which are guaranteed on a senior subordinated basis by the majority of its wholly owned subsidiaries and do not benefit from a security interest in respect of the property and assets of operating subsidiaries. The EUR 126.25 million Senior PIK Notes due 2015 at Ardagh Glass Group Plc remain the most subordinate debt instrument as these notes do not benefit from any guarantee and are effectively subordinated to all other debt of the Group's subsidiaries. [/FONT]
[FONT=verdana,arial,helvetica]Assignments: [/FONT]
[FONT=verdana,arial,helvetica]..Issuer: Ardagh Glass Finance plc [/FONT]
[FONT=verdana,arial,helvetica]....Senior Secured Regular Bond/Debenture, Assigned a range of 23 - LGD2 to (P)Ba3 [/FONT]
[FONT=verdana,arial,helvetica]Ardagh Glass Group plc, registered in Ireland, is a leading supplier of glass containers in the food and beverage segments in Northern Europe and is the third largest supplier of glass containers in Europe. In June 2007, Ardagh acquired Rexam's remaining European glass activities for about EUR660 million. The company generated sales of EUR1.36 billion in 2008 with a workforce of about 6,900 people[/FONT]
Soprattutto per quegli emittenti HY che non costituiscono un going concern (e dunque presentano un profilo di rischiosità dell'investimento ancora accentuato, specie in una congiuntura quale quella attuale) queste nuove emissioni sono secured (soprattutto negli USA, dove il ritorno degli emittenti HY sul mercato primario va avanti già da diversi mesi con maggiore intensità che in Europa), ed incidono sulla gerarchia dei bond già emessi, riducendone anche il recovery in prospettiva, nel caso in cui avvenisse il default dell'emittente.
[FONT=verdana,arial,helvetica]Moody's assigns (P)Ba3 to Ardagh's proposed EUR 300m Senior Secured Notes[/FONT]
[FONT=verdana,arial,helvetica]Frankfurt, June 12, 2009 -- Moody's Investors Service today assigned a provisional (P)Ba3 rating to Ardagh Glass Finance plc's proposed EUR 300 million Senior Secured Notes due 2016. [/FONT]
[FONT=verdana,arial,helvetica]The Corporate Family Rating (CFR) for Ardagh Glass Group Plc ("Ardagh" or the "Group") has been affirmed as well the ratings on the group's existing bonds (B3 for the EUR175 million Senior Notes due 2013 at Ardagh Glass Finance B.V., B3 for the EUR310 million Senior Notes due 2017 at Ardagh Glass Finance plc, and Caa1 for the EUR126.25 million Senior PIK Notes due 2015 at Ardagh Glass Group Plc). At the same time Moody's notes that LGD rates for these already rated bonds could change slightly once the final amount of issuance has been set and a definitive rating has been assigned to the proposed Senior Secured Notes. [/FONT]
[FONT=verdana,arial,helvetica]The affirmation of the CFR and existing instrument ratings is based on the expectation of a gradual recovery in earnings following a weak Q1 2009, which was impacted by lower volume and substantial restructuring expenses, and a stabilization of earnings in the second half of 2009 compared to 2008. Moreover, the ratings are based on the expectation of material positive Free Cash Flow generation in 2009 supported by an unwinding of working capital and reduced capex. Moody's will closely monitor Ardagh's operating performance and benchmark actual results against the expectations incorporated in the ratings. In case of notable deviation, downward pressure would arise on the ratings. [/FONT]
[FONT=verdana,arial,helvetica]The proposed EUR300 million Senior Secured Notes will rank pari passu with all existing senior secured debt of the Group, i.e. benefit from senior guarantees by the majority of the Group's wholly owned operating subsidiaries and from security interests in essentially all assets of the group. The collateral of the new Senior Secured Notes will comprise the same assets that secure the existing Group's Senior Secured Credit Facility with the exception of certain charges over land in Germany, which Moody's anticipates to provide only a marginally higher asset coverage to the Senior Secured Credit Facility relative to the new Senior Secured Notes. [/FONT]
[FONT=verdana,arial,helvetica]Ardagh plans to apply the expected proceeds of EUR300 million to refinance EUR150 million of existing senior secured term loans with a final maturity in 2014 and to repay outstanding amounts under the Group's senior secured revolving credit facilities. Purpose of the proposed bond issuance is to increase the Group's liquidity headroom for general corporate purposes and to pro-actively address future bank debt maturities with longer term capital markets debt. [/FONT]
[FONT=verdana,arial,helvetica]The proposed EUR300 million Senior Secured Notes will rank ahead of the existing Senior Notes issued by Ardagh Glass Finance B.V. and Ardagh Glass Finance plc which are guaranteed on a senior subordinated basis by the majority of its wholly owned subsidiaries and do not benefit from a security interest in respect of the property and assets of operating subsidiaries. The EUR 126.25 million Senior PIK Notes due 2015 at Ardagh Glass Group Plc remain the most subordinate debt instrument as these notes do not benefit from any guarantee and are effectively subordinated to all other debt of the Group's subsidiaries. [/FONT]
[FONT=verdana,arial,helvetica]Assignments: [/FONT]
[FONT=verdana,arial,helvetica]..Issuer: Ardagh Glass Finance plc [/FONT]
[FONT=verdana,arial,helvetica]....Senior Secured Regular Bond/Debenture, Assigned a range of 23 - LGD2 to (P)Ba3 [/FONT]
[FONT=verdana,arial,helvetica]Ardagh Glass Group plc, registered in Ireland, is a leading supplier of glass containers in the food and beverage segments in Northern Europe and is the third largest supplier of glass containers in Europe. In June 2007, Ardagh acquired Rexam's remaining European glass activities for about EUR660 million. The company generated sales of EUR1.36 billion in 2008 with a workforce of about 6,900 people[/FONT]
Imark
Forumer storico
Il bond (o i bond) HY che Wind conta di lanciare sul mercato per 2,7 mld euro a fine mese costituiscono la maggiore emissione HY sul mercato primario dall'ottobre 2006, e dopo la sua chiusura a metà luglio 2007, oramai due anni fa, in occasione dell'inizio del ciclo di flight to quality... il tempo vola... 
Ripercorre le recenti vicende del mercato primario con riferimento alle emissioni HY questa Bloomberg.
Wind Plans Europe’s Biggest Junk Bond Issue Since ‘06 (Update2)
By John Glover
June 18 (Bloomberg) -- Wind Telecomunicazioni SpA, Italy’s third-largest mobile-phone company, plans to sell as much as 2.7 billion euros ($3.8 billion) of debt in Europe’s biggest high- yield bond issue since October 2006.
The proposed deal is the latest sign of life in the region’s junk bond market, which slammed shut two years ago with the onset of the worst financial crisis in decades. Companies with below-investment grade credit ratings have started to issue again this year, from German medical equipment builder Fresenius SE in January to IFCO Systems NV this month.
Wind is “going to have to pay up, because the extra interest is going to take quite a bite out of free cash flow,” said Jonathan Moore, a high-yield analyst at Evolution Securities Ltd. in London. “They are one of the better names in high yield, so they should get it away.”
Wind is seeking the approval of existing bondholders to sell new dollar and euro debt and to use the proceeds to redeem so-called payment-in-kind loans, it said in an e-mailed statement. Wind also plans to pay a dividend of as much as 500 million euros to refinance debt of Weather Investments SpA, one of the holding companies that Egyptian financier Naguib Sawiris used to purchase the Rome-based phone company.
Market Revival
Junk bond sales, which dried up in July 2007, total $4.7 billion in Europe this year, compared with $3.3 billion in the whole of 2008, data compiled by Bloomberg show. Sales this year are still only about a fifth of those in 2007.
Bad Homburg, Germany-based Fresenius sold on Jan. 15 the first European junk bond of more than 100 million euros from a non-financial borrower since the closure of the market two years earlier. The owner of the world’s largest kidney dialysis provider sold $860 million of notes due July 2015, increasing the deal from an initial $650 million, according to data compiled by Bloomberg. It followed that deal up with a 150 million-euro note sale on June 3.
The market began to pick up more quickly in late May, when distiller Pernod Ricard SA and pay-TV company Virgin Media Inc. sold $2.1 billion of debt between them. IFCO, a Dutch maker of portable containers, sold 200 million euros of seven-year bonds on June 5.
Wind is seeking permission to issue the new notes from investors in Wind Acquisition Finance SA’s 950 million euros of 9.75 percent senior notes and $650 million of 10.75 percent senior bonds due 2015, it said in the statement.
Amending Terms
Wind is also asking bondholders to waive or amend some of the terms of its borrowings. This may allow it to sell all or part of its telecommunications towers business and use the money to pay off debt or reinvest, according to the statement.
In return, the company will pay existing noteholders an early consent fee of 7 percent of the face value of their investment, the statement said. Wind will also increase the coupon on the outstanding euro notes to 11 percent from 9.75 percent, and to 12 percent from 10.75 percent on the dollar bonds, it said.
The late consent payment is 2 percent of investors’ holdings and the deadlines are June 26 and July 1, Wind said.
“The incentive is quite generous but it’s still a lot of issuance to absorb,” said Phil Milburn, who manages high-yield bonds at Aegon Asset Management in Edinburgh. Wind is “well followed in Europe and everybody knows them, so that part should be fine if the price is right. But for the U.S. they’ll have to try and attract attention.”
Wind’s existing bonds were placed on review for a possible downgrade of as much as two levels by Fitch Ratings today, with the New York-based firm citing the planned fundraising.
Bond Risk Soars
The cost of insuring Wind’s bonds against default in the credit-default swaps market rose 32 basis points to 689 today, according to CMA Datavision in London. That means it costs 689,000 euros a year to protect 10 million euros of debt from default for five years.
Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements.
Wind hired Deutsche Bank AG, Credit Suisse Group AG and Royal Bank of Scotland Group Plc to manage the so-called solicitation to bondholders.
The borrower is rated Ba3, three steps below investment grade, by Moody’s Investors Service and an equivalent BB- by Standard & Poor’s and Fitch Ratings. Ratings lower than Baa3 at Moody’s and BBB- at the other two firms are considered high- risk, high-yield, or junk.
Ripercorre le recenti vicende del mercato primario con riferimento alle emissioni HY questa Bloomberg.
Wind Plans Europe’s Biggest Junk Bond Issue Since ‘06 (Update2)
By John Glover
June 18 (Bloomberg) -- Wind Telecomunicazioni SpA, Italy’s third-largest mobile-phone company, plans to sell as much as 2.7 billion euros ($3.8 billion) of debt in Europe’s biggest high- yield bond issue since October 2006.
The proposed deal is the latest sign of life in the region’s junk bond market, which slammed shut two years ago with the onset of the worst financial crisis in decades. Companies with below-investment grade credit ratings have started to issue again this year, from German medical equipment builder Fresenius SE in January to IFCO Systems NV this month.
Wind is “going to have to pay up, because the extra interest is going to take quite a bite out of free cash flow,” said Jonathan Moore, a high-yield analyst at Evolution Securities Ltd. in London. “They are one of the better names in high yield, so they should get it away.”
Wind is seeking the approval of existing bondholders to sell new dollar and euro debt and to use the proceeds to redeem so-called payment-in-kind loans, it said in an e-mailed statement. Wind also plans to pay a dividend of as much as 500 million euros to refinance debt of Weather Investments SpA, one of the holding companies that Egyptian financier Naguib Sawiris used to purchase the Rome-based phone company.
Market Revival
Junk bond sales, which dried up in July 2007, total $4.7 billion in Europe this year, compared with $3.3 billion in the whole of 2008, data compiled by Bloomberg show. Sales this year are still only about a fifth of those in 2007.
Bad Homburg, Germany-based Fresenius sold on Jan. 15 the first European junk bond of more than 100 million euros from a non-financial borrower since the closure of the market two years earlier. The owner of the world’s largest kidney dialysis provider sold $860 million of notes due July 2015, increasing the deal from an initial $650 million, according to data compiled by Bloomberg. It followed that deal up with a 150 million-euro note sale on June 3.
The market began to pick up more quickly in late May, when distiller Pernod Ricard SA and pay-TV company Virgin Media Inc. sold $2.1 billion of debt between them. IFCO, a Dutch maker of portable containers, sold 200 million euros of seven-year bonds on June 5.
Wind is seeking permission to issue the new notes from investors in Wind Acquisition Finance SA’s 950 million euros of 9.75 percent senior notes and $650 million of 10.75 percent senior bonds due 2015, it said in the statement.
Amending Terms
Wind is also asking bondholders to waive or amend some of the terms of its borrowings. This may allow it to sell all or part of its telecommunications towers business and use the money to pay off debt or reinvest, according to the statement.
In return, the company will pay existing noteholders an early consent fee of 7 percent of the face value of their investment, the statement said. Wind will also increase the coupon on the outstanding euro notes to 11 percent from 9.75 percent, and to 12 percent from 10.75 percent on the dollar bonds, it said.
The late consent payment is 2 percent of investors’ holdings and the deadlines are June 26 and July 1, Wind said.
“The incentive is quite generous but it’s still a lot of issuance to absorb,” said Phil Milburn, who manages high-yield bonds at Aegon Asset Management in Edinburgh. Wind is “well followed in Europe and everybody knows them, so that part should be fine if the price is right. But for the U.S. they’ll have to try and attract attention.”
Wind’s existing bonds were placed on review for a possible downgrade of as much as two levels by Fitch Ratings today, with the New York-based firm citing the planned fundraising.
Bond Risk Soars
The cost of insuring Wind’s bonds against default in the credit-default swaps market rose 32 basis points to 689 today, according to CMA Datavision in London. That means it costs 689,000 euros a year to protect 10 million euros of debt from default for five years.
Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements.
Wind hired Deutsche Bank AG, Credit Suisse Group AG and Royal Bank of Scotland Group Plc to manage the so-called solicitation to bondholders.
The borrower is rated Ba3, three steps below investment grade, by Moody’s Investors Service and an equivalent BB- by Standard & Poor’s and Fitch Ratings. Ratings lower than Baa3 at Moody’s and BBB- at the other two firms are considered high- risk, high-yield, or junk.
troppidebiti
Forumer storico
Il bond (o i bond) HY che Wind conta di lanciare sul mercato per 2,7 mld euro a fine mese costituiscono la maggiore emissione HY sul mercato primario dall'ottobre 2006, e dopo la sua chiusura a metà luglio 2007, oramai due anni fa, in occasione dell'inizio del ciclo di flight to quality... il tempo vola...
Ripercorre le recenti vicende del mercato primario con riferimento alle emissioni HY questa Bloomberg.
Wind Plans Europe’s Biggest Junk Bond Issue Since ‘06 (Update2)
By John Glover
June 18 (Bloomberg) -- Wind Telecomunicazioni SpA, Italy’s third-largest mobile-phone company, plans to sell as much as 2.7 billion euros ($3.8 billion) of debt in Europe’s biggest high- yield bond issue since October 2006.
The proposed deal is the latest sign of life in the region’s junk bond market, which slammed shut two years ago with the onset of the worst financial crisis in decades. Companies with below-investment grade credit ratings have started to issue again this year, from German medical equipment builder Fresenius SE in January to IFCO Systems NV this month.
Wind is “going to have to pay up, because the extra interest is going to take quite a bite out of free cash flow,” said Jonathan Moore, a high-yield analyst at Evolution Securities Ltd. in London. “They are one of the better names in high yield, so they should get it away.”
Wind is seeking the approval of existing bondholders to sell new dollar and euro debt and to use the proceeds to redeem so-called payment-in-kind loans, it said in an e-mailed statement. Wind also plans to pay a dividend of as much as 500 million euros to refinance debt of Weather Investments SpA, one of the holding companies that Egyptian financier Naguib Sawiris used to purchase the Rome-based phone company.
Market Revival
Junk bond sales, which dried up in July 2007, total $4.7 billion in Europe this year, compared with $3.3 billion in the whole of 2008, data compiled by Bloomberg show. Sales this year are still only about a fifth of those in 2007.
Bad Homburg, Germany-based Fresenius sold on Jan. 15 the first European junk bond of more than 100 million euros from a non-financial borrower since the closure of the market two years earlier. The owner of the world’s largest kidney dialysis provider sold $860 million of notes due July 2015, increasing the deal from an initial $650 million, according to data compiled by Bloomberg. It followed that deal up with a 150 million-euro note sale on June 3.
The market began to pick up more quickly in late May, when distiller Pernod Ricard SA and pay-TV company Virgin Media Inc. sold $2.1 billion of debt between them. IFCO, a Dutch maker of portable containers, sold 200 million euros of seven-year bonds on June 5.
Wind is seeking permission to issue the new notes from investors in Wind Acquisition Finance SA’s 950 million euros of 9.75 percent senior notes and $650 million of 10.75 percent senior bonds due 2015, it said in the statement.
Amending Terms
Wind is also asking bondholders to waive or amend some of the terms of its borrowings. This may allow it to sell all or part of its telecommunications towers business and use the money to pay off debt or reinvest, according to the statement.
In return, the company will pay existing noteholders an early consent fee of 7 percent of the face value of their investment, the statement said. Wind will also increase the coupon on the outstanding euro notes to 11 percent from 9.75 percent, and to 12 percent from 10.75 percent on the dollar bonds, it said.
The late consent payment is 2 percent of investors’ holdings and the deadlines are June 26 and July 1, Wind said.
“The incentive is quite generous but it’s still a lot of issuance to absorb,” said Phil Milburn, who manages high-yield bonds at Aegon Asset Management in Edinburgh. Wind is “well followed in Europe and everybody knows them, so that part should be fine if the price is right. But for the U.S. they’ll have to try and attract attention.”
Wind’s existing bonds were placed on review for a possible downgrade of as much as two levels by Fitch Ratings today, with the New York-based firm citing the planned fundraising.
Bond Risk Soars
The cost of insuring Wind’s bonds against default in the credit-default swaps market rose 32 basis points to 689 today, according to CMA Datavision in London. That means it costs 689,000 euros a year to protect 10 million euros of debt from default for five years.
Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements.
Wind hired Deutsche Bank AG, Credit Suisse Group AG and Royal Bank of Scotland Group Plc to manage the so-called solicitation to bondholders.
The borrower is rated Ba3, three steps below investment grade, by Moody’s Investors Service and an equivalent BB- by Standard & Poor’s and Fitch Ratings. Ratings lower than Baa3 at Moody’s and BBB- at the other two firms are considered high- risk, high-yield, or junk.
incredibile avevo letto la news ma non capivo...pensavo esistesse un' altra società con il nome wind..invece è proprio la "nostra"
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