The overwhelming response to the US$13.5bn buyout loan and bond financing for Refinitiv and the similar US$7.6bn debt financing backing Akzo Nobel’s spin-off of its chemicals business looks set to have far-reaching consequences for the debt markets.
High secondary trading levels on the US$13.5bn loan and bond financing backing Blackstone’s buyout of a 55% stake in Refinitiv, Thomson Reuters’ financial data and technology division, underscored investors’ enthusiasm for the massive deal after a surprisingly smooth execution across six tranches of debt.
A second huge buyout financing successfully limboed across the line last week as the US$7.6bn loan and bond deal backing the €10.1bn acquisition of Akzo Nobel’s speciality chemicals business mirrored the success of the US$13.5bn debt financing for Refinitiv, Thomson Reuters’ Financial and Risk division.
The US$5.05bn term loan for Envision Healthcare is the third massive leveraged loan to hit the market in September and also looks set to benefit from huge institutional demand, which has already seen multi-billion buyout loans for Thomson Reuters’ Financial and Risk business, Refinitiv, and Akzo Nobel’s chemicals business successfully placed.
Dubai’s port operator DP World overcame a shaky outlook for the emirate’s economy and global trade flare-ups as it threw itself into a triple-currency deal on Tuesday, raising more than US$3.3bn-equivalent.
For 20 years, the International Monetary Fund and World Bank preached the virtues of local bond markets.
Two Chinese borrowers priced US dollar bonds last week at the highest yields for any Asian new issue in four years, in a sign that continuing aversion to emerging market risk is taking a steep toll on corporate funding costs.
Peer-to-peer lender Funding Circle has alleviated concerns that the UK’s new IPO process would leave issuers exposed to market risk for longer than the standard four weeks. The lender will price its IPO on September 27, just 26 days since filing its registration document by trimming both the pre-marketing and bookbuilding phases.
Elanco Animal Health, Eli Lilly’s animal health unit, exploded onto public markets, achieving above-target pricing on its spin-off IPO and surging 50% on debut.
Staff at the International Monetary Fund have questioned whether government bonds held by central banks should be treated as assets of the sovereign rather than liabilities, noting that a reclassification could have dramatic implications for notions of sovereign indebtedness.
Shares of UK-based Farfetch acquired the luxury status of the fashion sold through its website as demand only grew as it increased its IPO asking price.