Here’s What to Watch in European High-Yield Bonds This Week – Bloomberg2021-08-16
Here’s What to Watch in European High-Yield Bonds This Week
By Laura Benitez and Irene García Pérez
(Bloomberg) — Faurecia will join the growing pipeline of
high-yield deals slated for later in the year after agreeing to
acquire German automotive supplier Hella.
The transaction will be financed by a 5.5 billion euro
($6.5 billion) committed bridge facility, which will be taken
out with term loans and high-yield bonds, according a company
statement. It will also raise 800 million euros of equity.
The deal will have a major impact on the group’s credit
metrics, with the reported net leverage substantially above 2.0x
proforma the transaction, compared to 1.5x previously, analysts
at Spread Research said in a note to clients.
Bonds of Faurecia dropped about one cent on the euro on
Elsewhere, The Very Group owners have picked banks for an
IPO next year just weeks after selling bonds, Sky News reported,
without saying where it got the information.
The retailer included very flexible terms in the new debt
deal, in the event it went public. An unusual 100% equity
clawback would allow it to redeem all or part of the notes with
the net proceeds from equity offerings at 102% of the principal