IFR International - 28.07.2018

lRMû!POLLOû'LOBALû-ANAGEMENTûWASûBUYINGû
the company in a US$5.6bn deal.
4HEûHOSPITALûOPERATORSûûSû
ûONEû
OFûTHEûMOSTûHEAVILYûTRADEDûBONDSû-ONDAYû
û
WEREûQUOTEDûASûHIGHûASû ûOVERûSIXû
POINTSûFROMû&RIDAYSûCLOSINGûLEVELS û
ACCORDINGûTOû-ARKET!XESSûDATA
"Yû4HURSDAY ûTHEûBONDSûHADûRISENûANOTHERû
POINTûTOûûDESPITEû-OODYS û30ûANDû
Fitch placing the company’s Ba2/BB-/BB
RATINGSûONûREVIEWûFORûDOWNGRADEûONû
Tuesday.
While spreads usually widen on the back
of a buyout as markets fret about added
LEVERAGE ûINûTHISûCASE ûSHORTûCOVERINGûANDûAû
ûCHANGE
OF
CONTROLûCLAUSEûPROVIDEDû
SUPPORT ûSAIDûINVESTORS
3HORTûSELLERSûHAVEûTAKENûAûSHINEûTOûTHEû
SECTOR ûWHICHûHASûFACEDûHIGHERûMEDICALû
COSTS ûFEWERûPATIENTSûANDûPROlTûPRESSURESû
from changes to Medicare and Medicaid
policies.
Prior to Monday’s acquisition
ANNOUNCEMENT ûTHEûSûHADûTRADEDûATû
AROUNDû ûOFFûAûYEARLYûLOWûOFû
h4HEûBONDSûHAVEûOVERSHOTûAûBITûTOûTHEû
UPSIDEûBECAUSEûOFûTHEûSHORTûCOVERINGûASûWELLû
ASûTHEûREALISATIONûTHATûTHEYûHAVEûAûû
CHANGEûOFûCONTROLûPUT vûANûINVESTORûSAID
!POLLOSûDEALûWILLûBRINGûTOGETHERû,IFE0OINTû
ANDû!POLLOSû2##(û(EALTH#AREûPARTNERS û
two hospital companies that operate mainly
in the rural United States.
Barclays ûCitigroup ûRBC Capital Markets and
Credit SuisseûWILLûlNANCEûTHEûTRANSACTION
030û)NVESTMENTSû#REDITû53!û,,#ûANDûANû
AFlLIATEûOFû1ATARû)NVESTMENTû!UTHORITYûWILLû
ALSOûPROVIDEûPARTûOFûTHEûDEBTûlNANCING û
according to LPC.

TESLA’S JUNK BOND DROPS SHARPLY

4HEûSOLEûJUNKûBONDûISSUEDûBYûTESLA fell
SHARPLYûONû-ONDAY ûMIRRORINGûAûSLUMPûINûITSû
shares in pre-market trading after a report
the electric carmaker has turned to some
SUPPLIERSûFORûAûREFUNDûOFûPREVIOUSLYûMADEû
PAYMENTSûINûAûBIDûTOûTURNûAûPROlT
Tesla has asked some suppliers to refund
MONEYûPAIDûSINCEû ûTHEû7ALLû3TREETû
OURNALûREPORTEDûONû3UNDAY ûCITINGûAûMEMO
)TSûSHARESûFELLûMOREûTHANûûBEFOREûTHEûBELL
4ESLASûûûBOND ûWHICHûITûSOLDûINû
THEûSUMMERûOFû ûWASûDOWNûûPOINTSû
ATûAûCASHûPRICEûOFû ûACCORDINGûTOû
-ARKET!XESS
)TûWASûTHEûMOSTûHEAVILYûTRADEDûBONDûINû
early trade.
4HEûMEMO ûWHICHûTHEû73ûSAIDûWASûSENTû
BYûAûGLOBALûSUPPLYûMANAGER ûDESCRIBEDûTHEû
request as essential to Tesla’s continued
operation and characterised it as an
INVESTMENTûINûTHEûCARûCOMPANYûTOûCONTINUEû
THEûLONG
TERMûGROWTHûBETWEENûBOTHûPLAYERS û
Reuters reported.

EUROPE/MIDDLE EAST/

AFRICA

WFS, CEVA UNSHAKEN BY TRADE NOISE

WORLDWIDE FLIGHT SERVICES and CEVA LOGISTICS

went ahead with offerings last Friday

DESPITEûINVESTORSûEXPRESSINGûCONCERNSûABOUTû

THEIRûCREDITûPROlLESûANDûTHEûTIMINGûONûTHEû

back of geopolitical noise.

Promontoria Holding 264 – the entity

Cerberus will use to raise funding for its

PURCHASEûOFûAIRûCARGOûHANDLERû7&3ûnûSETûlNALû

TERMSûATûûONûITSûõMû.#ûlXED

RATEû

tranche and at Euribor plus 625bp on the

õMû.#ûmOATERû"OTHûWEREûATûTHEûTIGHTû

end of talk.

4HEûNOTESûAREûRATEDû""ûBYû-OODYS30

7HISPERSûWEREûREPORTEDLYûûAREAûBUTû

WEREûLATERûALSOûHEARDûINûTHEûHIGHûSûWITHûANû

INVESTORûCITINGûSOMEûUNCERTAINTYûDURINGûTHEû

PRE

MARKETINGûEXERCISE

7HILEûPUSH

BACKûONûPRICINGûISûUNCLEARû

there was also widespread talk in the

MARKETûTHATûCOVENANTSûHADûBEENûAMENDEDû

TOûDELETEûAûhHUGEûLIENSûLOOPHOLEvûANDûAû

correction made to clarify one of the biggest

debt baskets.

#OVENANTû2EVIEWûHADûmAGGEDûAûFEWûKEYû

CONCERNSûINûTHEûORIGINALûDOCUMENTATIONû

including about liens.

h4HEûLIENSûCOVENANTûPOTENTIALLYûALLOWSûANû

unlimited amount of tack-on notes to be

SECUREDûALONGSIDEûTHEûINITIALûNOTESûSUBJECTû

TOûCOMPLIANCEûWITHûTHEûDEBTûCOVENANTû4HISû

COULDûPERMITûUNLIMITEDûCOLLATERALûDILUTIONvû

THEûRESEARCHûlRMûWROTEûONû4HURSDAY

Leads did not reply to requests for

comment.

!ûSECONDûINVESTORûHADûPOINTEDûTOûTHEû

WEAKûDOCUMENTATIONûESPECIALLYûGIVENûTHATû

the new owner has been open about more

ACQUISITIONSûFURTHERûINCREASINGûITSûEXPECTEDû

XûLEVERAGE

h4HEûTIMINGûFORû7&3ûANDû#EVAûWASûALSOûAû

BITûDIFlCULTvûHEûSAID

“They’re both related to general trade and

TRANSPORTATIONûANDûOBVIOUSLYûITSûBEENûAûBIGû

focus this week with all the talk about tariffs

in the US and China. But it’s been better

SINCEûTHEû4RUMP

*UNCKERûMEETINGûANDû

TRADE

RELATEDûNAMESûAREûDOINGûMUCHûBETTERv

!ûTHIRDûINVESTORûREFERENCEDû#-!û#'-û"û

BYû30  ûASûAûPOTENTIALûCOMPARABLEûSAYINGû

WFS should come closer to where the

French container transportation and

shipping company is trading.

#-!ûWHICHûOWNSûûOFû#EVAûHASûõMû

OFûû*ANUARYûSûTRADINGûONûANûû

HANDLEûATûAûYIELDûTOûMATURITYûOFûû

according to Tradeweb prices on Friday.

They are callable from October 2020.

-EANWHILEû#EVAûWASûABLEûTOûSETûPRICEûTALKû

INSIDEûTHEûMID

SûWHISPERSûATûnû

4HEûõMû.#ûBONDûWASûPRICEDûATûTHEû

tight end of the range.

4HEREûASûWELLûCONCERNSûEMERGEDûOVERûTHEû

DOCUMENTATIONûBUTûTHEûRECENTû)0/ûANDû

SUBSEQUENTûDELEVERAGINGûHAVEûBEENûPRAISEDû

4HEûNOTESûAREûEXPECTEDûTOûBEûRATEDû"""nû

STABLEPOSITIVE    

v#EVAûHADûPROBLEMSûINûTHEûPASTûBUTûITû

LOOKSûLIKEûTHEYVEûGOTûAûNEWûlNANCIALû

STRUCTUREûANDûCOMPLETEûNEWûMANAGEMENTû

SOûITûSHOULDûMAKEûITûMOREûINVESTABLEvûTHEû

THIRDûINVESTORûSAID

!POLLOûRAISEDû3&RBNû53BN   ûLISTINGû

THEûCOMPANYûONûTHEû3)8û3WISSû%XCHANGEûINû

May.

0ROCEEDSûnûTOGETHERûWITHûAûPREVIOUSLYû

ANNOUNCEDû4ERMû,OANû"ûDUEûûAû

REVOLVINGûCREDITûFACILITYûDUEûûANDûCASHû

ONûHANDûnûWILLûBEûUSEDûTOûREPAYûEXISTINGûDEBT

SCHENCK PROCESS MARKETING €100m

JUNE 2023S

SCHENCK PROCESSûVIAû0LATINûû'MB(  ûLASTû

Friday started marketing €100m June 2023

SENIORûSECUREDûNOTESûATûAû

ûALL

INû

YIELDûINCLUSIVEûOFû/)$ 

4HEûTRANSACTIONûVIAûSOLEûGLOBALû

coordinator Deutsche Bankû"$  ûANDûJOINTû

BONDS HIGH-YIELD

ALL EUROPEAN HIGH-YIELD ISSUERS

1/1/2018 TO DATE

Managing No of Total Share

bank or group issues US$(m) (%)

1 JP Morgan 39 5,430.79 9.1

2 Deutsche Bank 35 4,823.63 8.1

3 BNP Paribas 38 3,719.50 6.2

4 Barclays 25 3,556.65 6.0

5 Citigroup 24 3,244.51 5.4

6 Goldman Sachs 28 3,240.13 5.4

7 Credit Suisse 26 2,941.87 4.9

8 BAML 18 2,695.31 4.5

9 HSBC 26 2,618.36 4.4

10 Morgan Stanley 17 2,335.59 3.9

Total 106 59,619.09

Excluding equity-related debt.

Source: Thomson Reuters SDC code: B06c

ALL ASIAN HIGH-YIELD ISSUERS

1/1/2018 TO DATE

Managing No of Total Share

bank or group issues US$(m) (%)

1 Haitong Securities 35 1,768.47 7.0

2 Citic 23 1,565.37 6.2

3 Deutsche Bank 17 1,389.51 5.5

4 Bank of China  18 1,354.25 5.3

5 Guotai Junan Securities 32 1,334.66 5.3

6 JP Morgan 7 1,275.24 5.0

7 Morgan Stanley 12 1,176.84 4.6

8 Credit Suisse 15 1,054.92 4.2

9 BAML 11 1,006.95 4.0

10 HSBC 20 983.17 3.9

Total 75 25,318.56

Excluding equity-related debt.

Source: Thomson Reuters SDC code: B06d