The US$5.6bn debt sale backing Carlyle Group’s buyout of Veritas collapsed in spectacular fashion last week, leaving the eight underwriting banks hurting from a deal gone horribly wrong.
Banks are set to take significant losses on a big part of a US$14bn pipeline of leveraged buyout loans for US companies after a US$5.6bn debt financing for software company Veritas was pulled and another loan for retailer Belk struggled.
German car maker Volkswagen is asking its relationship banks for up to €20bn in short-term loans as it seeks to shore up its balance sheet in the wake of the emissions-cheating scandal that has engulfed the company.
The tough new reality of raising money in the Middle East came into sharp focus on Tuesday, when Bahrain was forced to pay a huge new-issue premium to print a US$1.5bn dual-tranche bond.
Alfa-Bank burst into the market last week with a US$500m deal that priced well inside the issuer’s curve. But despite the deal boasting a healthy orderbook and printing at a time when spreads across Russia are shrinking, bankers are still downbeat on the country.
US and European sanctions are inadvertently providing a boost to the same Russian companies they are supposed to punish, with some in Russia boasting the restrictions have triggered a reworking of the local financial system that has made access to funding cheaper and easier.
Intel last week unveiled plans for a debut offering of Kangaroo bonds, underlining the Australian dollar’s growing appeal as a global funding currency.
The quartet of Greek bank recapitalisations limped over the line throughout the week, with a covered message for Piraeus Bank finally arriving on Friday afternoon, more than two weeks after the deal was launched.