An Acuris Company
July 2020
European Leveraged InsightsAn overview of the leveraged loan & high-yield bond markets
Ben WatsonMarket Analyst, Debtwire Par+44 20 3741 [email protected]
Colm (CJ) DohertyGlobal Head of Primary Market Analysis, Debtwire Par+1 212 390 [email protected]
Manohar VasnaniSenior Analyst, Debtwire [email protected]
Shivraj ShettySenior Analyst, Debtwire [email protected]
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2
European Leveraged Insights – July 2020
Commentary:
Key market trends in the leveraged loan & high yield bond markets 4-6
Leveraged Loans:
Scorecards 7-8
Issuance overview 9-23
Pricing 24-34
Industry stats 35-37
Country stats 38-40
Deals coming to market/Deals in market 41-43
Secondary market snapshot 44-52
CLO market focus 53-57
Continued next slide…
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3
European Leveraged Insights – July 2020
High yield bonds:
Scorecards 58-59
Issuance overview 60-68
Pricing 69-72
Industry stats 73-74
Country stats 75-76
Secondary market high yield bond snapshot 77-83
…..Continued from prior slide
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4
Continued next page…
European Leveraged Insights – July 2020
Market Commentary:
High yield bond market posts robust deal flow, institutional loan volume slips
Western European companies continued to tap the high yield bond market in July, adding another EUR 14.3bn of issuance. The last two months have been busy, with volume totalling over EUR 30bn, representing a strong rebound from the EUR 4.3bn posted in April and May combined. The recent deal flow pushed year-to-date high yield bond issuance to EUR 56bn, topping the EUR 50bn recorded in the same period last year. Looking ahead, the high yield primary market is set to pull back in the next fewweeks as the summer holiday season sets in.
The two biggest high yield bond deals to price in July were Fiat Chrysler and Stonegate Pub Company. Fiat Chrysler priced a EUR 3.5bn triple-tranche notes offering. The EUR 1.25bn 2023 notes priced at 3.375%, the EUR 1.25bn 2026 notes at 3.875% and the EUR 1bn July 2028 notes at 4.5%.
The Stonegate Pub Company deal priced its GBP 950m senior secured 2025 fixed-rate non-call-two tranche at par with an 8.25% coupon and its EUR 300m senior secured 2025 non-call-one floating-rate note at a 93 OID and Euribor+ 575bps coupon.
On the leveraged loan side, it was a quieter month in the institutional market, with issuance amounting to EUR 5.9bn, a drop from June’s EUR 8.6bn. Spanish telecom operator MasMovil accounted for a large chunk of July volume with its upsized EUR 2bn term loan B which priced at a 98 OID and Euribor+ 425bps.
The effects of COVID-19 on the market has led institutional loan deal flow to post a decline this year to EUR 62bn from EUR 67bn in the same period in 2019.
On a related note, the decline in M&A transactions this year due to the pandemic has filtered through to the institutional loan market, which has experienced an 18% year-over-year drop in M&A related financing volume, despite a pick-up in deal flow in the last two months.
Traditional lenders face increased competition from direct lenders, who continue to provide an alternative option to borrowers and increasingly have moved up market into the large corporate market.
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European Leveraged Insights – July 2020
Continued next page…
Investment grade corporate bond market outshines high yield bonds
The recent pick up in high yield bond market activity represents a reversal from April and May when the primary market struggled to gain traction. The investment grade corporate bond market in contrast was open for business during the second quarter. With investors taking flight to safety, investment grade bond issuance surged in 2Q20 as funding was readily available for companies that sought to raise cash to help ride out the economic storm caused by the pandemic.
This wave of deal flow pushed investment grade corporate bond issuance by European issuers to USD 240bn in 2Q20. Though the pace has eased recently with only EUR 22bn of deal flow in July, the year-to-date figure of EUR 389bn leaves 2020 well poised to top the EUR 447bn recorded in full-year 2019.
In terms of performance, the investment grade market has outperformed the high yield market on a total return basis, gaining 0.20% through July versus a loss of 3.34% for high yield, according to ICE/BofA.
Loan yields tighten on new deals in July, led by smaller OIDs
High yield bond pricing shifted marginally wider in July and remains above pre-COVID levels in the early part of this year.
On the other hand, the mix of relatively light deal flow and steady investor appetite for paper has pushed yields on new loans tighter. In particular, OIDs (original issue discounts) declined to an average of 223 bps (reflecting an issue price of 97.77) in July, down from 403 bps in June. Up until this month, OIDs were climbing steadily since earlier in the year, and so despite the decline in the size of OIDs in July, they remain far above pre-COVID levels.
There has been a similar though less pronounced trend with first-lien institutional loan margins, which climbed as high as 481 bps in June, before tightening to 444 bps on average in July.
Loan investors, like CLOs, have sought larger OIDs in recent months as the market repriced risk and demanded higher yields inthe COVID-19 environment.
The range of OIDs in July has been relatively tight compared to prior months, ranging from 97 (and margin of Euribor+475) on Cerelia Participation Holding and 97 (E+450) on Dedalus to 98.5 (E+425) on Angus Chemical. In contrast, the range of OIDs in June was much wider, ranging from 92 (E+800) on Hurtigruten AS and 93.50 (E+400) on Boels Rental and 93.50 (E+500) on Kantar to 99.50 (E+325) on Nord Anglia Education.
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European Leveraged Insights – July 2020
Secondary markets continue to recover
Investor appetite for higher yielding assets continues to help bond and loan returns. On top of this, rating downgrades easedfurther in July, with 16 European companies downgraded in the July 1-21 time-period. This follows 45 downgrades in June, 48 in May, 128 in April and 89 downgrades in the second half of March, according to the Debtwire Ratings Tracker.
Euro high yield bonds returned another 1.79% in July, according to ICE/BofA. Higher quality credits outperformed in the most recent month, as the asset class continued to recover from the losses posted in March. Despite the recent gains, euro bonds are still down 3.34% year-to-date.
On a yield basis, the euro index tightened to 4.16% in July, with BB’s at 2.92%, single-B’s at 5.48% and CCC’s at 10.94%.Leveraged loans continued to shift higher too, returning 0.62% in July. Similar to the high yield bond market, loans have postedstrong gains from the March lows but are still down 2.84% on a total return basis, according to JP Morgan.
The improved sentiment in the loan market has flowed through to the CLO market. European CLO issuance amounted to EUR 2.7bn in July, up 13% from a month earlier, though deal count declined to 8 from 9. Despite the upward trend in the last three months, European CLO issuance still lags 2019 volume, with deal flow of EUR 12.8bn representing a 37% decline from the same period last year.
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Leveraged loan scorecards
July 2020
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- Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 YTD20 YTD19YoY change
(%)
Leveraged issuance 28.48 26.33 9.19 23.28 15.14 24.57 13.57 140.55 128.08 10%
New money leveraged issuance 12.83 11.48 3.91 19.51 11.03 17.81 11.57 88.14 71.98 22%
Institutional issuance 17.87 20.35 5.05 1.86 2.57 8.58 5.88 62.16 66.71 -7%
New money institutional issuance 7.31 8.85 2.86 1.83 1.20 7.36 5.40 34.80 41.00 -15%
Leveraged M&A loan issuance (ex. LBOs) 5.81 2.01 0.58 0.00 0.85 3.14 2.33 14.73 25.51 -42%
LBO loan issuance 3.50 6.83 3.15 0.49 0.38 5.41 4.07 23.82 21.90 9%
Sponsored loan issuance 17.52 15.99 6.01 1.39 2.51 9.27 6.27 58.96 67.44 -13%
Second-lien issuance 0.25 0.23 0.08 - 0.08 - - 0.63 1.31 -52%
Reverse Yankee issuance 4.54 1.58 1.15 0.54 - 3.82 0.71 12.33 7.85 57%
CLO issuance - new 1.28 3.27 1.22 0.83 1.03 2.42 2.56 12.62 20.14 -37%
CLO issuance - refinancing - - - - - - - - 2.60 -
CLO issuance - resets - 0.79 - - - - 0.79 0.64 24%
CLO issuance – reissues - - - - - - - 0.48 -
2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 to date - - -
Avg. pro rata margin 311bps 299bps 334bps 254bps 266bps 300bps - - -
Avg. institutional loan margin – first liens 402bps 370bps 359bps 343bps 480bps 444bps - - -
Secondary market - Institutional term loans
31-Jan-20 29-Feb-2031-Mar-
2030-Apr-20 31-May-20 30-Jun-20 31-Jul-20 - -
Wtd. Avg. Bid 98.79 97.42 82.31 88.58 90.99 92.73 90.61 - -
Wtd. Par-plus share 60% 11% 0% 0% 0% 0% 0% - -
Wtd. Sub-90 share 5% 7% 74% 39% 26% 16% 67% - -
Advancer % (all loans) 64% 11% 0% 92% 83% 80% 69% - -
Decliner % (all loans) 32% 87% 99.8% 8% 15% 20% 28% - -
Unchanged % (all loans) 4% 2% 0.2% 0% 2% 0% 3% - -
8
Leveraged loan market scorecard*
European Leveraged Insights – July 2020
Source: Debtwire Par *Subject to further updates as more data is collected
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Leveraged loan issuance overview
July 2020
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10
Leveraged loan issuance – Monthly – Pro rata vs. Institutional*
Source: Debtwire Par
9
15
7
21
37 8
6 69 10
5
11 10 912
4 58
52
5 4
15
6 7
13 12
25
810
2
96 4
21
1216
8
15
14
14
12
10
12 9
23
128
9
14
8 10 11
13
4
107 16
2
2 5
12
10 7
1218
7
10
1513
4
1820
5
2
3
9
6
0
5
10
15
20
25
30
35
EU
R b
n
Institutional
Pro Rata/Non Inst.
9 14 136
15 143 6
18 16 18 14
30 30 3120 24
3121 15
24 2618 20 19
48
8
15
3021
14
1825
1114
12 1822 35
5142
3344 31
29
2725
19
3036 32
43
13
6
0
10
20
30
40
50
60
70
80
90
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20to
date
EU
R b
n
Institutional
Pro Rata/Non Inst.
Leveraged loan issuance – Quarterly – Pro rata vs. Institutional
European Leveraged Insights – July 2020
*Subject to further updates as more data is collected
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11
Revolving credits issuance
Source: Debtwire Par
1.9 2.0
13.9
4.3 4.6
3.2
10.8
1.0
2.6 2.63.3
3.8
6.8
4.7
3.0
4.5 4.6 5.0
6.4
1.3
2.9
1.2 1.4 0.92.0
1.2
9.8
3.24.1
1.8
8.0
5.3
0.9
2.4 2.1
4.2
5.8
2.72.0
7.3
4.5
9.2
2.2
14%
9%
31%
18%16%16%
33%
8%
14%15%
11%
22%
40%
24%
16%
23%23%25%25%
17%
20%
8%7%
20%
30%
13%
37%
20%
29%
7%
27%
59%
6%
10%9%
62%
20%
10%
22%
31%30%
37%
16%
-5%
5%
15%
25%
35%
45%
55%
65%
0
2
4
6
8
10
12
14
16
18Ja
n-1
7
Fe
b-1
7
Ma
r-1
7
Ap
r-1
7
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Jun
-18
Jul-
18
Au
g-1
8
Se
p-1
8
Oct
-18
No
v-1
8
De
c-1
8
Jan
-19
Fe
b-1
9
Ma
r-1
9
Ap
r-1
9
Ma
y-1
9
Jun
-19
Jul-
19
Au
g-1
9
Se
p-1
9
Oct
-19
No
v-1
9
De
c-1
9
Jan
-20
Fe
b-2
0
Ma
r-2
0
Ap
r-2
0
Ma
y-2
0
Jun
-20
Jul-
20
Sh
are
(%)
EU
R b
n
Issuance
Share of overall leveraged loan issuance
European Leveraged Insights – July 2020
An Acuris Company
12
Leveraged loan issuance – Monthly – New money share*
Source: Debtwire Par
1410
20
6
13
58 7
129
138
12 11
18
7
12
6 72 4
7
17
95
15 14
5
11 10 95
13 11
4
20
11
18
12
14
10
13
6
6
12
21
105 10
612
8 9
8
2
29
14
23
3
8
59
11 13
4
4
13 14
2
1615
5
3
3
7
2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
5
10
15
20
25
30
35
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Jun
-18
Jul-
18
Au
g-1
8
Se
p-1
8
Oct
-18
No
v-1
8
De
c-1
8
Jan
-19
Fe
b-1
9
Ma
r-1
9
Ap
r-1
9
Ma
y-1
9
Jun
-19
Jul-
19
Au
g-1
9
Se
p-1
9
Oct
-19
No
v-1
9
De
c-1
9
Jan
-20
Fe
b-2
0
Ma
r-2
0
Ap
r-2
0
Ma
y-2
0
Jun
-20
Jul-
20
Ne
w m
on
ey
sh
are
Le
ve
rag
ed
loa
n is
sua
nce
(EU
R b
n)
New Money
New Money Share
716 19
1221 19
11 15 17 20 16 2034 35 39
2034 31 36
1528 29 30
23 28
48
12
17
2714
9
13 20
25
12 14 2428
4838 25
43 21 29 12
2513
24 2128
35
13
2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
10
20
30
40
50
60
70
80
90
Ne
w m
on
ey
sh
are
Le
ve
rag
ed
loa
n is
sua
nce
(EU
R b
n) New Money
New Money share
Leveraged loan issuance – Quarterly – New money share*
European Leveraged Insights – July 2020
*Subject to further updates as more data is collected
An Acuris Company
13
Institutional loan issuance – Monthly - New money share*
Source: Debtwire Par
47
9
4
8
36 4 5 6
10
63
811
4
9
4 52 2
3
108
3
7 8
46 5
3 3
79
3 2 1
75
107 3
6
3
6
17
73
3
4
5
4
3
2
0
0
3
11
1 1
2
12
5
5
9
3
4
10
9
1
11
12
2
0 1
1
1
0%
20%
40%
60%
80%
100%
120%
0
5
10
15
20
25
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Jun
-18
Jul-
18
Au
g-1
8
Se
p-1
8
Oct
-18
No
v-1
8
De
c-1
8
Jan
-19
Fe
b-1
9
Ma
r-1
9
Ap
r-1
9
Ma
y-1
9
Jun
-19
Jul-
19
Au
g-1
9
Se
p-1
9
Oct
-19
No
v-1
9
De
c-1
9
Jan
-20
Fe
b-2
0
Ma
r-2
0
Ap
r-2
0
Ma
y-2
0
Jun
-20
Jul-
20
Ne
w m
on
ey
sh
are
EU
R b
n
New Money
New Money share
613 13
812 9 9 12 10 9 10
15 15 1521
1321 17
24
1115 18 19
1219
105
9
178
66
16
23
28
11
20
3628 12 31
1011
3
14 4
1216
19
24
3
1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
10
20
30
40
50
60
Ne
w m
on
ey
sh
are
EU
R b
n
New Money
New Money share
Institutional loan issuance – Quarterly - New money share*
European Leveraged Insights – July 2020
*Subject to further updates as more data is collected
An Acuris Company
14
Leveraged loan issuance – Use of proceeds – 2020 to date
50.1
41.5
23.8
13.0
4.42.3 1.7 1.5
1.1 1.00.00
10.00
20.00
30.00
40.00
50.00
60.00
Refinancing GeneralCorporate
LBO Acquisition RefinancingBond
Restructuring Merger DividendRecap
DividendPayment
CapitalExpenditure
EU
R b
n
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
15
Institutional loan issuance – Use of proceeds – 2020 to date
27.1
16.7
8.1
3.83.0
1.4 1.0 0.90.2
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Refinancing LBO Acquisition GeneralCorporate
RefinancingBond
Dividend Recap DividendPayment
Merger Restructuring
EU
R b
n
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
16
Leveraged loan issuance by rating*
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
>=BB+ BB BB- B+ B B- <=CCC+
2018
2019
2020 YTD
Sh
are
of
issu
an
ce (%
)
*Based on universe of loans that are rated. Where split rated, higher rating is used. Only Moody’s and S&P ratings are considered
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
17
Institutional loan issuance by rating*
Source: Debtwire Par
0%
10%
20%
30%
40%
50%
60%
>=BB+ BB BB- B+ B B- <=CCC+
2018
2019
2020 YTD
Sh
are
of
issu
an
ce (%
)
European Leveraged Insights – July 2020
*Based on universe of loans that are rated. Where split rated, higher rating is used. Only Moody’s and S&P ratings are considered.
An Acuris Company
No.Borrower
NameSponsor(s) Country
Issuer Rating
Purpose Institutional € Pricing OID Prorata € Bookrunner Close Date
1 Refresco PAI Partners Netherlands B+/B2 GCP 400 E+ 400bps 98.5 80* BNP, CS 29-Jul-20
2 Amer Sports ANTA Finland B-/B3 GCP 100 E+ 625bps - 20* JPM 29-Jul-20
3 Stonegate TDR Capital UK B-/B2 Acquisition 450 - - 220 Barc, GS, Nom 24-Jul-20
4 Nielsen - Netherlands BB/Ba3 Refinance 240 E+ 375bps 98.75 48*JPM, Citi, BNP,
HSBC, Miz, MUFG, WF
17-Jul-20
5 Koden C'PRO France TBD LBO 100 - - 55 BNP, Nat, SG 17-Jul-20
6 Cerelia Ardian France TBD LBO 383 E+ 475bps 97 100 GS, BNP, ING, Nat 16-Jul-20
7 Dedalus Ardian Italy B Acquisition 680 E+ 450bps 97 136* BNP, UBS 16-Jul-20
8Skyscraper
Performance Solutions
Lone Star Germany TBD LBO 810 E+ 450bps 98 162* DB, GS, Intesa, UBS 10-Jul-20
9 KDC Cornell Capital Canada B-/B2/B Acquisition 441 E+ 500bps 98 88* UBS, Jeff 9-Jul-20
10 VerisureHellman & Friedman
Sweden B2/B Refinance 400 E+ 400bps 99.5 80* GS, BofA, MS 9-Jul-20
11Thyssenkrupp
ElevatorAdvent, Cinven,
RAGGermany TBD LBO 1,000 E+ 425bps 98 2,000 GS, UBS 2-Jul-20
12Angus
ChemicalGolden Gate USA B-/B2 Refinance 248 E+ 425bps 98.5 50* JPM 2-Jul-20
13 Kantar Bain UK B/B2 Refinance 155 E+ 500bps 93.5 31* GS, MS 29-Jun-20
14 Carnival - USA BBB-/Ba1 GCP 800 E+ 750bps 96 160* JPM, GS 26-Jun-20
15 IFCO Triton/ADIA Germany B+/B2 Refinance 200 E+ 350bps 97.25 40* BofA 25-Jun-20
16 Planet Eurozeo Ireland B-/B3 Acquisition 63 E+ 650bps - 13* NW 19-Jun-20
17 Pharmazell Bridgepoint Germany TBD Acquisition 290 E+ 450bps 97 58* HSBC, UC 19-Jun-20
18 APCOA Centerbridge Germany TBD B/B2 10 E+ 725bps - 2* Barclays 18-Jun-20
19Nord Anglia
EducationCPPIB, Baring PE
AsiaHong Kong B-/B2 GCP 200 E+ 325bps 99.5 40* DB, HSBC, JPM 12-Jun-20
20The Stars
Group- USA BB+/B2 Amendment 850 E+ 375bps - 170* DB 12-Jun-20
18
Recently closed leveraged loans issued YTD
European Leveraged Insights – July 2020
*Based on transactions where at least a portion of the deal was syndicated in Europe
Source: Debtwire Par
An Acuris Company
19
M&A leveraged loan issuance - Monthly
Source: Debtwire Par
9.4
2.6
5.4
0.9
4.5
0.2 0.1 1.4
4.5 4.1 4.3 3.3 3.81.5
5.7
1.6 1.3 1.23.0
0.8 1.9 1.9
8.7
0.30.5
6.2 6.0
0.2 2.4 3.2 3.31.9
5.8
2.00.6 0.0 0.9
3.1 2.3
2.2
2.0
4.7
4.1
6.1
3.25.9 3.6
1.64.5
6.1
2.2
6.7
7.9
8.9
1.3
9.2
4.52.4
1.31.2
2.4
4.2
5.3
1.4
3.2 4.2
3.0
6.84.0
2.7
0.8
3.5
6.8
3.2
0.50.4
5.4
4.1
0
2
4
6
8
10
12
14
16
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Jun
-18
Jul-
18
Au
g-1
8
Se
p-1
8
Oct
-18
No
v-1
8
De
c-1
8
Jan
-19
Fe
b-1
9
Ma
r-1
9
Ap
r-1
9
Ma
y-1
9
Jun
-19
Jul-
19
Au
g-1
9
Se
p-1
9
Oct
-19
No
v-1
9
De
c-1
9
Jan
-20
Fe
b-2
0
Ma
r-2
0
Ap
r-2
0
Ma
y-2
0
Jun
-20
Jul-
20
EU
R b
n
LBO
Non-LBO
5.1 5.83.3 2.9 3.8 3.9
1.25.6
2.5 4.2 5.1 4.98.7
14.310.9
1.7
12.98.6 8.7
4.9
12.5
6.9 8.6 8.4 8.44.0 2.3
1.3
8.110.2
4.8
11.79.4
9.0
6.38.8
10.04.7 6.4
7.9
5.814.9
12.7
12.116.8
19.4
8.2
7.8
9.9
13.9
7.6
13.5
6.3
4.1
0
5
10
15
20
25
30
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20to
date
EU
R b
n
LBO
Non-LBO
M&A leveraged loan issuance - Quarterly
European Leveraged Insights – July 2020
An Acuris Company
20
Sponsored loan issuance - Monthly
Source: Debtwire Par
15.214.0
15.6
8.810.9
7.8
15.612.9
8.811.4
15.1
5.3
14.413.914.9
5.2
12.714.315.1
2.23.5
8.3
14.2
10.8
3.6
12.714.4
4.0
9.6
13.912.0
4.2
17.516.0
6.0
1.4 2.5
9.3
6.3
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
EU
R b
n
6.5
17.212.2
5.5
15.919.8
10.113.8 16.9
21.6 21.328.0
46.340.0
35.3 36.2 35.3 33.7 32.8 31.526.0 27.0 28.0 30.0
39.5
13.26.3
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
EU
R b
n
Sponsored loan issuance - Quarterly
European Leveraged Insights – July 2020
An Acuris Company
21
Second-lien loan issuance - Monthly
Source: Debtwire Par
0.0
0.4
0.0
0.30.5
0.2
0.9
0.3
0.7
0.1
0.3
0.8
0.20.1
0.3
0.2
0.5
0.0
0.2
0.0
0.2
0.0 0.0 0.00.1
0.3 0.3 0.2
0.10.0
0.10.0 0.00.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
EU
R b
n
0.3
1.4
2.4
1.00.8
0.30.5
1.0
0.4
0.00.3 0.3 0.5 0.3
0.6 0.50.8
1.5
1.1 1.10.9
0.2 0.2 0.30.6 0.1
0.00.0
0.5
1.0
1.5
2.0
2.5
EU
R b
n
Second-lien loan issuance - Quarterly
European Leveraged Insights – July 2020
An Acuris Company
22
Reverse Yankee leveraged loan issuance – Monthly
Source: Debtwire Par
European Leveraged Insights – July 2020
Reverse Yankee leveraged loan issuance - Quarterly
0.0
1.4 1.3
3.42.8
1.2
2.5
1.32.2
0.9 1.2
5.3
0.8
3.8
2.5
0.0
3.9
1.8
3.7
0.0 0.0
1.7
0.0
2.7
0.3 1.0
2.2 2.1
0.00.3 0.2
0.0
4.5
1.61.2
0.50.0
3.8
0.70
1
2
3
4
5
6
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Jun
-18
Jul-
18
Au
g-1
8
Se
p-1
8
Oct
-18
No
v-1
8
De
c-1
8
Jan
-19
Fe
b-1
9
Ma
r-1
9
Ap
r-1
9
Ma
y-1
9
Jun
-19
Jul-
19
Au
g-1
9
Se
p-1
9
Oct
-19
No
v-1
9
De
c-1
9
Jan
-20
Fe
b-2
0
Ma
r-2
0
Ap
r-2
0
Ma
y-2
0
Jun
-20
Jul-
20
EU
R b
n
1.9 2.3 2.5
4.6
8.6
3.7
7.5
5.04.4
9.8
6.45.4
1.7
4.0 4.2
0.5
7.3
4.4
0.70
2
4
6
8
10
12
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 todate
EU
R b
n
An Acuris Company
23
Covenant-lite share of institutional loans
27%
52%
77% 76% 77%
84%88%
97%
86%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 to date
Sh
are
of
loa
ns
(%)
Source: Xtract Research
European Leveraged Insights –June 2020
An Acuris Company
Leveraged loan pricing
July 2020
An Acuris Company
25
Leveraged loan pricing
298
338361
345
427
289 298
418
313
401
254
392
260281
241214
269
311 299
334
254 266300
453
414432
483
523
454
418
377348 356 370
322
377 367
413
366
449
408381
353 351
534
444
0
100
200
300
400
500
600
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20to date
We
igh
ted
Ma
rgin
(bp
s)
Pro rata*
Institutional
European Leveraged Insights – July 2020
Source: Debtwire Par
*Excludes GBP 400m Debenhams & New Look GBP 80m and 100m facilities, all issued as part of a restructuring transaction
An Acuris Company
26
Pro Rata loan pricing – First liens (LBOs only)
305
357
293
330
363 364
304
431
379
441 437
0
50
100
150
200
250
300
350
400
450
500
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 to date
We
igh
ted
Ma
rgin
(bp
s)
*Excludes GBP 400m Debenhams & New Look GBP 80m and 100m facilities, all issued as part of a restructuring transaction
Source: Debtwire Par
*All currencies
European Leveraged Insights – July 2020
An Acuris Company
27
Institutional loan pricing – First liens
337
383 398
435 432 411 418
466
508
454
406
366 348 355
370
322
367352
401
357
425402
370359343
480
444
-
100
200
300
400
500
600
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
3Q
20
to
da
te
We
igh
ted
Ma
rgin
(bp
s)
European Leveraged Insights – July 2020
Source: Debtwire Par
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
We
igh
ted
Yie
ld*
(%)
** Euro facilities only, based off universe of loans where all pricing fields are available
*All currencies
*Yield to 3 years
An Acuris Company
28
Institutional loan pricing – First liens – M&A
Source: Debtwire Par
325
360
399
474459
409425
409
509499473
408388
362383
365376372399
384
414421
390414
360
429442
0
100
200
300
400
500
600
We
igh
ted
Av
era
ge
Ma
rgin
(bp
s)
*All currencies
European Leveraged Insights – July 2020
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
We
igh
ted
Yie
ld*
(%)
** Euro facilities only, based off universe of loans where all pricing fields are available
*Yield to 3 years
An Acuris Company
29
Institutional loan pricing – First liens (LBOs only)
European Leveraged Insights – July 2020
Source: Debtwire Par
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
We
igh
ted
Yie
ld*
(%)
** Euro facilities only, based off universe of loans where all pricing fields are available
*Yield to 3 years*All currencies
398371
395
483454
473
423
453
502516
484462
410411
380364374
407402408430431
413423
379
441437
0
100
200
300
400
500
600
We
igh
ted
Av
era
ge
Ma
rgin
(bp
s)
*All currencies
An Acuris Company
Quarterly average margin on first-lien institutional loans
Source: Debtwire Par
150
200
250
300
350
400
450
500
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 todate
Ba1/Ba2/Ba3
B1/B2/B3
We
igh
ted
Ma
rgin
(b
ps)
European Leveraged Insights – July 2020
30
An Acuris Company
31
Original issue discounts (OIDs)*
0%
10%
20%
30%
40%
50%
60%
<98 98 to <99 99 to <99.25 99.25 to <99.50 99.50 to <99.75 99.75 to <100 >=100
Sh
are
of
issu
an
ce (%
)
Price / OID
2018
2019
2020 YTD
*Based on universe of deals where OID data available
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
32
Benchmark floors on institutional term loans*
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2016 2017 2018 2019 2020 YTD
Sh
are
of
issu
an
ce (%
)
1% floor 0.75% floor 0.50% floor 0% floor
*Based on universe of deals where benchmark floors present and the base rate is EURIBOR
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
33
Institutional loan flex activity
-80.00
-60.00
-40.00
-20.00
0.00
20.00
40.00
60.00
80.00
-40
-30
-20
-10
0
10
20
30
40
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 todate
Av
g. m
arg
in f
lex
(bp
s)
Nu
mb
er
of
ma
rgin
fle
xe
s
Number of flexes down Number of flexes up Average flex up Average flex down
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
Loan yields tighten on new deals in July, led by smaller OIDs
European Chart of the Week
Source: Debtwire Par
0
100
200
300
400
500
600
Inst
itu
tio
na
l fir
st-l
ien
lo
an
ma
rgin
, OID
(bp
s)
Margin
OID
An Acuris Company
Leveraged loan stats by industry
July 2020
An Acuris Company
Source: Debtwire Par
IndustryAmount iss.
(EURbn)No. of deals
Share of iss. (%)
Share of deals (%)
New money iss. (EURbn)
Share of new money iss. (%)
Industrials & Chemicals 42.30 74 30.09% 21.33% 28.57 32.41%
Consumer 18.16 51 12.92% 14.70% 12.23 13.87%
Telecommunications 12.88 14 9.16% 4.03% 10.72 12.17%
Financial Services 12.36 19 8.80% 5.48% 7.20 8.17%
Business Services 11.83 54 8.42% 15.56% 10.02 11.36%
Technology 9.11 24 6.48% 6.92% 5.50 6.24%
Pharma, Medical & Biotech 7.25 22 5.16% 6.34% 2.32 2.63%
Transport 5.82 20 4.14% 5.76% 3.21 3.64%
Leisure 5.46 22 3.88% 6.34% 1.78 2.02%
Media 4.90 10 3.49% 2.88% 2.30 2.61%
Energy, Mining & Utilities 3.91 9 2.78% 2.59% 1.57 1.78%
Construction 3.44 17 2.45% 4.90% 1.97 2.24%
Utilities (other) 2.38 6 1.69% 1.73% 0.09 0.11%
Real Estate 0.75 4 0.53% 1.15% 0.66 0.75%
Agriculture 0.00 1 0.00% 0.29% 0.00 0.00%
36
Leveraged loan issuance by broad sector
European Leveraged Insights – July 2020
An Acuris Company
Source: Debtwire Par
Industry Amount iss. (EURbn) Share of iss. (%) New money iss. (EURbn) Share of new money iss. (%)
Industrials & Chemicals 16.45 26.47% 7.79 22.39%
Consumer 6.55 10.53% 5.47 15.73%
Pharma, Medical & Biotech 6.19 9.95% 1.69 4.86%
Technology 5.75 9.25% 3.56 10.22%
Financial Services 5.36 8.63% 4.63 13.30%
Business Services 5.24 8.43% 4.50 12.94%
Telecommunications 4.59 7.39% 3.35 9.64%
Media 3.88 6.24% 1.27 3.66%
Leisure 3.29 5.30% 1.02 2.92%
Utilities (other) 1.70 2.73% 0.00 0.00%
Construction 1.43 2.30% 1.13 3.25%
Transport 1.14 1.83% 0.24 0.69%
Energy, Mining & Utilities 0.59 0.95% 0.14 0.40%
Real Estate 0.00 0.00% 0.00 0.00%
Agriculture 0.00 0.00% 0.00 0.00%
37
Institutional loan issuance by broad sector
European Leveraged Insights – July 2020
An Acuris Company
Leveraged loan stats by country of syndication
July 2020
An Acuris Company
Country Amount iss. (EURbn) No. of deals Share of iss. (%) Share of deals (%) New money iss. (EURbn) Share of new money iss. (%)
United Kingdom 32.96 73 23% 21% 18.28 21%
France 28.27 86 20% 25% 26.18 30%
Germany 20.47 36 15% 10% 13.05 15%
Spain 16.69 53 12% 15% 8.06 9%
Netherlands 11.75 17 8% 5% 6.95 8%
Italy 8.55 27 6% 8% 6.99 8%
Sweden 5.66 8 4% 2% 2.07 2%
Switzerland 4.84 11 3% 3% 2.43 3%
Luxembourg 3.31 6 2% 2% 2.16 2%
Belgium 2.95 7 2% 2% 0.12 0%
Norway 2.36 12 2% 3% 0.57 1%
Austria 1.24 2 1% 1% 0.64 1%
Denmark 0.68 2 0% 1% 0.38 0%
Malta 0.28 1 0% 0% - -
Finland 0.22 3 0% 1% 0.12 0%
Channel Islands 0.17 1 0% 0% - -
Portugal 0.10 1 0% 0% 0.10 0%
Ireland (Republic) 0.06 1 0% 0% 0.06 0%
39
Leveraged loan issuance by country of syndication
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
Country Amount iss. (EURbn) Share of iss. (%) New money iss. (EURbn) Share of new money iss. (%)
United Kingdom 24.15 39% 13.95 40%
Germany 12.97 21% 6.76 19%
France 5.71 9% 5.23 15%
Netherlands 4.85 8% 1.78 5%
Spain 4.57 7% 3.43 10%
Switzerland 2.51 4% 1.21 3%
Belgium 2.32 4% 0.00 0%
Norway 1.29 2% 0.24 1%
Italy 1.17 2% 0.68 2%
Denmark 0.68 1% 0.38 1%
Luxembourg 0.58 1% 0.05 0%
Austria 0.48 1% 0.48 1%
Sweden 0.40 1% 0.40 1%
Malta 0.28 0% - -
Finland 0.10 0% 0.10 0%
Ireland (Republic) 0.06 0% 0.06 0%
Portugal 0.06 0% 0.06 0%
40
Institutional loan issuance by country of syndication
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
Deals coming to market / Deals in market
July 2020
An Acuris Company
42
Leveraged loan pipeline
Source: Debtwire Par
€0 b
€5 b
€10 b
€15 b
€20 b
€25 b
€30 b
€35 bJa
n-1
7
Fe
b-1
7
Ma
r-1
7
Ap
r-1
7
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Jun
-18
Jul-
18
Au
g-1
8
Se
p-1
8
Oct
-18
No
v-1
8
De
c-1
8
Jan
-19
Fe
b-1
9
Ma
r-1
9
Ap
r-1
9
Ma
y-1
9
Jun
-19
Jul-
19
Au
g-1
9
Se
p-1
9
Oct
-19
No
v-1
9
De
c-1
9
Jan
-20
Fe
b-2
0
Ma
r-2
0
Ap
r-2
0
Ma
y-2
0
Jun
-20
Jul-
20
EU
R b
n
Institutional
Prorata
European Leveraged Insights – July 2020
Senior tranches syndicated in Western EuropeDeals consist of mandated, to loans in general syndication
An Acuris Company
Source: Debtwire Par
Name Sponsor CountryIssuer Rating
Purpose Stage Institutional €
Pro rata €
Bookrunner(s) Bank Meeting Commitment date
Audiotonix Ardian UK TBD LBO Mandated 480 96* BoI, CA, HSBC TBD TBD
Roompot KKR Netherlands B/B2 SBO Mandated 600* 120* KKR TBD TBD
HelpSystems HGCC USA TBD Acquisition Mandated 126 25* Jeff TBD TBD
Vivacom BC Partners Bulgaria BB-/Ba3 Acquisition Pre-Mandated TBD - TBD TBD TBD
Caffe Nero - UK TBD Refinance Pre-Mandated TBD - TBD TBD TBD
Omnicare Pharma Equistone Germany TBD SBO Pre-Mandated 195* 39* TBD TBD TBD
Young's Seafood CapVest UK TBD LBO Pre-Mandated 305 61* GS, RBC TBD TBD
43
Deals coming to market
European Leveraged Insights – July 2020
Deals consist of mandated, to loans in general syndication
*Indicates where institutional/pro-rata split isn’t yet disclosed and so 80/20 split is presumed
An Acuris Company
Secondary loan market snapshot
July 2020
An Acuris Company
45
Weighted average bid*
75.0
80.0
85.0
90.0
95.0
100.0
03
-No
v-1
7
03
-De
c-1
7
03
-Ja
n-1
8
03
-Fe
b-1
8
03
-Ma
r-1
8
03
-Ap
r-1
8
03
-Ma
y-1
8
03
-Ju
n-1
8
03
-Ju
l-1
8
03
-Au
g-1
8
03
-Se
p-1
8
03
-Oct
-18
03
-No
v-1
8
03
-De
c-1
8
03
-Ja
n-1
9
03
-Fe
b-1
9
03
-Ma
r-1
9
03
-Ap
r-1
9
03
-Ma
y-1
9
03
-Ju
n-1
9
03
-Ju
l-1
9
03
-Au
g-1
9
03
-Se
p-1
9
03
-Oct
-19
03
-No
v-1
9
03
-De
c-1
9
03
-Ja
n-2
0
03
-Fe
b-2
0
03
-Ma
r-2
0
03
-Ap
r-2
0
03
-Ma
y-2
0
03
-Ju
n-2
0
03
-Ju
l-2
0
We
igh
ted
av
g. b
id (%
of
pa
r)
All term loans
Institutional term loans
Most widely quoted institutional term loans
Source: Markit
European Leveraged Insights – July 2020
An Acuris Company
46
Par-plus share*
0
10
20
30
40
50
60
702
8-F
eb
-19
14
-Ma
r-1
9
28
-Ma
r-1
9
11
-Ap
r-1
9
25
-Ap
r-1
9
9-M
ay
-19
23
-Ma
y-1
9
6-J
un
-19
20
-Ju
n-1
9
4-J
ul-
19
18
-Ju
l-1
9
1-A
ug
-19
15
-Au
g-1
9
29
-Au
g-1
9
12
-Se
p-1
9
26
-Se
p-1
9
10
-Oct
-19
24
-Oct
-19
7-N
ov
-19
21
-No
v-1
9
5-D
ec-
19
19
-De
c-1
9
2-J
an
-20
16
-Ja
n-2
0
30
-Ja
n-2
0
13
-Fe
b-2
0
27
-Fe
b-2
0
12
-Ma
r-2
0
26
-Ma
r-2
0
9-A
pr-
20
23
-Ap
r-2
0
7-M
ay
-20
21
-Ma
y-2
0
4-J
un
-20
18
-Ju
n-2
0
Sh
are
of
loa
ns
bid
>=
10
0 (%
)
All term loans
Institutional term loans
European Leveraged Insights – July 2020
Source: Markit
An Acuris Company
47
Institutional term loans bid distribution*
Monthly comparison
0%
10%
20%
30%
40%
50%
60%
<70 70 to<80 80 to <85 85 to <90 90 to <95 95 to <98 98 to <99 99 to <100 100 to <101 >=101
Sh
are
of
loa
ns
Avg. Bid (% of par)
Apr-20
May-20
Jun-20
Jul-20
Source: Markit
European Leveraged Insights – July 2020
An Acuris Company
48
Industry snapshot*
0%
2%
4%
6%
8%
10%
12%
14%
16%
65
67
69
71
73
75
77
79
81
83
85
87
89
91
93
95
97
99
101
We
igh
ted
Av
g. b
id (%
of
pa
r)
30-Jun-20
30-Jul-20
% share
*Based on universe of institutional term loans priced in the secondary market..
Source: Markit
European Leveraged Insights – July 2020
An Acuris Company
49
Country of issuer*
92
.26
93
.32
93
.25
90
.91 93
.14
95
.27
90
.10
96
.10
89
.76
96
.13
92
.26
93
.12
93
.72
91
.23 9
3.9
5
95
.82
84
.85
96
.36
91
.80
95
.67
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
70
72
74
76
78
80
82
84
86
88
90
92
94
96
98
100
102
Sh
are
of
ma
rke
t (%
)
We
igh
ted
Av
g. b
id (%
of
pa
r)
30-Jun-20
31-Jul-20
% Share
*Based on universe of institutional term loans.
Source: Markit
European Leveraged Insights – July 2020
An Acuris Company
50
Advancers / decliners – All loans
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%S
ep
-17
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Jun
-18
Jul-
18
Au
g-1
8
Se
p-1
8
Oct
-18
No
v-1
8
De
c-1
8
Jan
-19
Fe
b-1
9
Ma
r-1
9
Ap
r-1
9
Ma
y-1
9
Jun
-19
Jul-
19
Au
g-1
9
Se
p-1
9
Oct
-19
No
v-1
9
De
c-1
9
Jan
-20
Fe
b-2
0
Ma
r-2
0
Ap
r-2
0
Ma
y-2
0
Jun
-20
Jul-
20
Sh
are
of
loa
ns
(%)
Declined Unchanged Advanced
Source: Markit
European Leveraged Insights – July 2020
An Acuris Company
LoanX ID Issuer Deal Name Facility Ccy Country IndustryInitial
AmountFinal Maturity
Initial Spread
Bid Offer DepthPrior month-
end BidChange % change
LX180043 CONFORAMA HLDGSteinhoff/Conforama 4/19
(Warrants stapled) TLA EUR France Retailing 205.24 14/04/2023 1000 99.25 103.75 thin 80 19.25 24.06%
LX180044 CONFORAMA HLDG Steinhoff/Conforama 4/19 TLB EUR France Retailing 111 14/04/2023 1000 99.25 103.75 thin 80 19.25 24.06%
LX163467 OEP Trafo HoldCo GmbH SGB-SMIT 7/17 TLB EUR GermanyComputers &
Electronics 360 18/07/2024 400 49.875 54.125 4 42.5 7.375 17.35%
LX188706 CELSA GROUPCelsa Poland 5/20 Junior Non-
Converted EUR/PLN TL EUR Spain Steel 26 35 thin 23.5 2.5 10.64%
LX177038 PACIFIC BC TOPCO 5 LTDMSX International 1/19 (EUR)
Cov-Lite TLB3 EURUnited
Kingdom Securities & Trusts 498 08/01/2024 450 81.167 83.833 6 74 7.167 9.69%
LX174007 INVICTUS MEDIA SLU Imagina 5/18 2nd Lien TL EUR Spain Media 180 26/12/2025 750 80 82.667 3 73.688 6.312 8.57%
LX167539 L1R HB FIN LTDHolland & Barrett 8/17 (EUR)
Cov-Lite TL EUR Jersey Leasing 415.48 02/09/2024 425 73.7 76.3 5 68 5.7 8.38%
LX173201 COMPASS IV LTDWyndham Vacation 4/18 2nd
Lien Cov-Lite TL EURUnited
Kingdom Gaming And Hotels 167 30/04/2026 800 69.833 73.333 3 65.375 4.458 6.82%
LX168861 CEP IV Invt 16 Sa rlADB Safegate 9/17 (EUR) Cov-
Lite TL EUR Luxembourg Financial Services 285 03/10/2024 350 82.393 84.964 7 77.667 4.726 6.08%
LX177188 CEP IV Invt 16 Sa rlADB Safegate 11/18 (EUR)
Add-on TL EUR Luxembourg Financial Services 59 03/10/2024 350 82.393 84.964 7 77.667 4.726 6.08%
LX164355 Watson BidCo BVDummen Orange 5/17 Cov-
Lite TLB EUR Netherlands Retailing 425 20/05/2024 350 36.5 40.25 4 34.429 2.071 6.02%
LX160841 APCOA Pkg Hldgs GmbH Apcoa 3/17 TLB EUR Germany Retailing 514 20/03/2024 325 92.7 94.55 6 87.583 5.117 5.84%
LX169932 SAPPHIRE BIDCO B.V.TMF Group 5/18 2nd Lien Cov-
Lite TL EUR NetherlandsProfessional & Business
Services 200 04/05/2026 687.5 79.5 83 thin 75.5 4 5.30%
LX172074 EG FINCO LTDEuro Garages/EG Group 3/18
2nd Lien (EUR) Cov-Lite TL EURUnited
Kingdom Retailing 200 20/04/2026 800 94.5 96 thin 90 4.5 5.00%
LX155220 MAGIC NEWCO LLC Misys 10/16 (EUR) Cov-Lite TLB EUR United StatesComputers &
Electronics 537 04/10/2023 325 92 93.281 8 87.75 4.25 4.84%
LX163229 MISYS LTD Misys 6/17 (EUR) Cov-Lite TLB EURUnited
KingdomComputers &
Electronics 881.39 13/06/2024 325 92 93.281 8 87.75 4.25 4.84%
LX157317 Big White AcquiCo GmbH SLV 12/16 Cov-Lite TLB EUR Germany Home Furnishings 397 03/01/2024 425 89.75 92 thin 85.75 4 4.66%
LX168740 Capri Acquisitions BidCo LtdCPA Global 11/17 (EUR) Cov-
Lite TL EUR JerseyProfessional & Business
Services 250 01/11/2024 325 99.482 100.196 6 95.375 4.107 4.31%
LX169669 PI UK HOLDCO II LTDPaysafe 12/17 2nd Lien (EUR)
Cov-Lite TL EURUnited
KingdomProfessional & Business
Services 212.46 05/01/2026 700 90.5 94 thin 86.875 3.625 4.17%
LX153494 TRIGO TRIGO 7/16 (EUR) TLA EUR France Transportation 21.6 22/07/2022 400 90.216 92.216 implied 86.913 3.303 3.80%
LX182307 Steenbok Lux Finco 1 SARLSteinhoff/Steenbok 8/19 SFH
21/22 PIK TLA1 EUR Luxembourg Securities & Trusts 1722.6 31/12/2021 1000 54.6 57.2 5 52.75 1.85 3.51%
LX169954 Rain Carbon Inc Rain Carbon 12/17 TLB EUR United States Machinery 390 16/01/2025 300 92.75 93.75 thin 89.917 2.833 3.15%
LX172323 CIDRON TBS NEWBIDCO LTDBinding Site 4/18 (EUR) Cov-
Lite TLB EURUnited
Kingdom Securities & Trusts 325.21 16/04/2025 350 95.8 96.9 5 92.875 2.925 3.15%
LX171092 CCP Lux Hldg Sa rl Axilone 1/18 Cov-Lite TL EUR Luxembourg Securities & Trusts 326.6 10/01/2025 375 90.75 92 thin 88 2.75 3.13%
LX174704Promotora de Informaciones SA
PRISA Prisa 7/18 TL2 EUR SpainProfessional & Business
Services 956.51 30/11/2022 400 86.333 88.5 7 83.75 2.583 3.08%
51
Biggest monthly ADVANCERS
Source: Markit
European Leveraged Insights – July 2020
An Acuris Company
LoanX ID Issuer Deal Name Facility Ccy Country IndustryInitial
AmountFinal
MaturityInitial
SpreadBid Offer Depth
Prior month-end Bid
Change % change
LX171024 CROWN FIN US INC Cineworld 2/18 (EUR) Cov-Lite TL EUR United StatesEntertainment And
Leisure 607.64 28/02/2025 262.5 63.125 67.125 5 79.2 -16.075 -20.30%
LX181243 VUE INTL BIDCO PLCVue Cinemas 6/19 Delayed-
Draw Cov-Lite TLB2 EURUnited
KingdomEntertainment And
Leisure 114 03/07/2026 475 77.357 79.714 7 85.688 -8.331 -9.72%
LX180927 VUE INTL BIDCO PLC Vue Cinemas 6/19 Cov-Lite TLB1 EURUnited
KingdomEntertainment And
Leisure 634 03/07/2026 475 77.357 79.714 7 85.688 -8.331 -9.72%
LX181236 PAX MIDCO SPAIN, S.L.U.Areas Worldwide 7/19 (EUR)
Cov-Lite TLB EUR Spain Retailing 1050 01/07/2026 475 74.821 76.893 7 79.813 -4.992 -6.25%
LX164876 Intl Park Hldgs BVPortAventura World 6/17 Cov-
Lite TLB EUR NetherlandsEntertainment And
Leisure 620 13/06/2024 350 83 86.5 3 88.125 -5.125 -5.82%
LX169722 COLOUR BIDCO LTD NGA UK 11/17 Cov-Lite TLB GBPUnited
KingdomComputers &
Electronics 260 31/01/2025 525 67.5 75 thin 71 -3.5 -4.93%
LX152965 HNVR Holdco Ltd Hotelbeds 7/16 Cov-Lite TLB EURUnited
KingdomEntertainment And
Leisure 1007.6 12/09/2023 425 75.75 78.25 3 79.357 -3.607 -4.55%
LX182305 Steenbok Lux Finco 2 SARLSteinhoff/Steenbok 8/19 SEAG
PIK TLB1 EUR Luxembourg Securities & Trusts 119.18 31/12/2021 787.5 95 98.333 4 99.125 -4.125 -4.16%
LX179300 HNVR Holdco LtdHotelbeds 4/19 Incremental
Cov-Lite TLC EURUnited
KingdomEntertainment And
Leisure 400 12/09/2025 450 76.25 78.25 6 79.429 -3.179 -4.00%
LX183661 CASINO GUICHARDPERRACHONCasino Guichard 11/19 Cov-
Lite TLB EUR France Retail Food & Drug 1000 31/01/2024 550 94.375 94.875 7 97.525 -3.15 -3.23%
LX175234 OPTIMUS BIDCO SAS Averys 8/18 Cov-Lite TLB EUR France Transportation 400 29/09/2025 375 90.333 93.333 3 93.063 -2.73 -2.93%
LX185784 Stage Entmt BVStage Entertainment 3/20 Cov-
Lite TLB2 EUR NetherlandsEntertainment And
Leisure 335 02/06/2026 325 81.667 83.417 thin 84.125 -2.458 -2.92%
LX167174 CatLuxe Sa rl Pronovias 9/17 Cov-Lite TLB1 EUR Luxembourg Retailing 61 02/10/2024 450 45.5 53 4 46.833 -1.333 -2.85%
LX171236 CatLuxe Sa rl Pronovias 1/18 Cov-Lite TLB3 EUR Luxembourg Retailing 154 02/10/2024 450 45.5 53 4 46.833 -1.333 -2.85%
LX185331 AERNNOVA Aerospace SAU Aernnova Aerospace 2/20 TLB2 EUR Spain Aerospace/Defense 100 26/02/2027 300 78.75 80.667 3 81 -2.25 -2.78%
LX185330 AERNNOVA Aerospace SAUAernnova Aerospace 2/20
Cov-Lite TLB1 EUR Spain Aerospace/Defense 390 26/02/2027 300 78.75 80.667 3 81 -2.25 -2.78%
LX180046 Steenbok Lux Finco 2 SARLSteinhoff/Steenbok 8/19 2nd
Lien PIK TLA2 EUR Luxembourg Securities & Trusts 3591.04 31/12/2021 1075 53.2 56.2 5 54.667 -1.467 -2.68%
LX168755 Comet BidCo Ltd Clarion Events 9/17 Cov-Lite TLB GBPUnited
KingdomProfessional & Business
Services 315 27/09/2024 525 78.667 81.333 3 80.625 -1.958 -2.43%
LX169486 HILDING ANDERS FING AB PUBLHilding Anders 11/17 (EUR)
PIK TLB2 EUR Sweden Home Furnishings 500 29/11/2024 575 53.95 58.35 5 55.25 -1.3 -2.35%
LX176572 ASP UNIFRAX HLDGS INC Unifrax 12/18 (EUR) Cov-Lite TLB EUR United States Chemicals 310 12/12/2025 375 83.75 87.15 5 85.75 -2 -2.33%
LX178115 CASSINI Comexposium 3/19 Cov-Lite TLB EUR France Securities & Trusts 483 30/03/2026 400 79 81.833 5 80.786 -1.786 -2.21%
LX176184 NEP Group Inc NEP 10/18 (EUR) Cov-Lite TL EUR United States Media 505.13 20/10/2025 350 82.875 85.125 4 84.625 -1.75 -2.07%
LX182306 Steenbok Lux Finco 2 SARLSteinhoff/Steenbok 8/19 2nd
Lien SEAG PIK TLB2 EUR Luxembourg Securities & Trusts 1106.41 31/12/2021 1075 36 40 3 36.667 -0.667 -1.82%
LX182057 SWISSPORT INTL AG Swissport 8/19 Cov-Lite Delayed TL EUR Switzerland Aerospace/Defense 50 14/08/2024 525 80.146 82.104 13 81.625 -1.479 -1.81%
LX182055 SWISSPORT INTL AG Swissport 8/19 Cov-Lite TL EUR Switzerland Aerospace/Defense 900 14/08/2024 450 80.146 82.104 13 81.625 -1.479 -1.81%
52
Biggest monthly DECLINERS
Source: Markit
European Leveraged Insights – July 2020
An Acuris Company
CLO market focus
Based on CLO market data provided by sister company, Creditflux.
For more information about ways Creditflux can help you, please contact [email protected]
July 2020
An Acuris Company
54
New issue CLO volume - Monthly
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
Jan
-14
Fe
b-1
4M
ar-
14
Ap
r-1
4M
ay
-14
Jun
-14
Jul-
14
Au
g-1
4S
ep
-14
Oct
-14
No
v-1
4D
ec-
14
Jan
-15
Fe
b-1
5M
ar-
15
Ap
r-1
5M
ay
-15
Jun
-15
Jul-
15
Au
g-1
5S
ep
-15
Oct
-15
No
v-1
5D
ec-
15
Jan
-16
Fe
b-1
6M
ar-
16
Ap
r-1
6M
ay
-16
Jun
-16
Jul-
16
Au
g-1
6S
ep
-16
Oct
-16
No
v-1
6D
ec-
16
Jan
-17
Fe
b-1
7M
ar-
17
Ap
r-1
7M
ay
-17
Jun
-17
Jul-
17
Au
g-1
7S
ep
-17
Oct
-17
No
v-1
7D
ec-
17
Jan
-18
Fe
b-1
8M
ar-
18
Ap
r-1
8M
ay
-18
Jun
-18
Jul-
18
Au
g-1
8S
ep
-18
Oct
-18
No
v-1
8D
ec-
18
Jan
-19
Fe
b-1
9M
ar-
19
Ap
r-1
9M
ay
-19
Jun
-19
Jul-
19
Au
g-1
9S
ep
-19
Oct
-19
No
v-1
9D
ec-
19
Jan
-20
Fe
b-2
0M
ar-
20
Ap
r-2
0M
ay
-20
Jun
-20
Jul-
20
EU
R b
n
European Leveraged Insights – July 2020
Source: Creditflux, Wells Fargo
An Acuris Company
55
CLO refinancing, reset & re-issue volume - Monthly
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5Ja
n-1
6
Ma
r-1
6
Ma
y-1
6
Jul-
16
Se
p-1
6
No
v-1
6
Jan
-17
Ma
r-1
7
Ma
y-1
7
Jul-
17
Se
p-1
7
No
v-1
7
Jan
-18
Ma
r-1
8
Ma
y-1
8
Jul-
18
Se
p-1
8
No
v-1
8
Jan
-19
Ma
r-1
9
Ma
y-1
9
Jul-
19
Se
p-1
9
No
v-1
9
Jan
-20
Ma
r-2
0
Ma
y-2
0
Jul-
20
EU
R b
n
Refinancings
Resets
European Leveraged Insights – July 2020
Source: Creditflux
An Acuris Company
Pricing date CLO name Manager Arranger SizeDiscounted margin
AAA AA A BBB BB B
31-Jul-20 Contego CLO VIII Five Arrows Citi 297 145 225 280 380 670 875
29-Jul-20 RRE 4Apollo (Redding
Ridge) JP Morgan 392 - - - - - -
23-Jul-20 Aqueduct European CLO 5 HPS BNP Parbias 394 145 200 280 380 680 850
21-Jul-20 Cairn CLO XII Cairn Credit Suisse 329 151 230 300 410 715 865
21-Jul-20 Hayfin Emerald CLO IV Hayfin Goldman Sachs 344 145 230 320 425 750 900
17-Jul-20 Montmartre Euro CLO 2020-2 CBAM Barclays 301 159 238 290 400 710 810
14-Jul-20 Arbour CLO VIII Oaktree Barclays 296 145 239 290 400 700 -
02-Jul-20 Northwoods Capital 20 Euro Angelo Gordon BofA 205 150 220 320 467 750 900
26-Jun-20 Mackay Shields Euro CLO II Mackay Shields BNP Paribas 211 155 235 320 469 750 -
25-Jun-20 AlbaCore EURO CLO I AlbaCore BofA 233 153 250 320 425 710 -
25-Jun-20 Harvest XXIV Investcorp Barclays 250 160 230 300 400 713 -
19-Jun-20 GoldenTree Loan Management EUR CLO 4 GoldenTree Morgan Stanley (lead)/Barclays/Wells Fargo 374 155 238 280 410not
offerednot
offered
12-Jun-20 BBAM European CLO I Bluebay Credit Suisse 251 160 240 280 410 720 810
12-Jun-20 OCP Euro CLO 2020-4 Onex Credit Suisse 252 175 242 280 420 730 875
04-Jun-20 Vendome Funding CLO CBAM JP Morgan 348 190 257 300 500 775 -
03-Jun-20 Aurium CLO VI Spire BofA 217 190 220 280 440 - -
02-Jun-20 CVC Cordatus Loan Fund XVII CVC Natixis 290 - - - - - -
28-May-20 Avondale Park GSO BNP Paribas 284 195 275 370 580 911 -
28-May-20 Henley CLO II Napier Park Credit Suisse 202 200 280 380 500 - -
14-May-20 Fair Oaks Loan Funding II Fair Oaks JP Morgan 263 205 290 365 585retaine
d -
05-May-20 Bilbao CLO III Guggenheim Citi 282 205 307 365 610 990 -
28-Apr-20 Avoca CLO XXIV KKR Citi 339 195 275 375 625 - -
27-Apr-20 Zinnia FinanceApollo (Redding
Ridge) BNP Paribas 288 225 363 442retaine
d - -
27-Apr-20 Providus CLO IV Permira Citi 208 200 300 400 625 1025 -
11-Mar-20 Madison Park Euro Funding XV CSAM Citi 402 120 185 300 500 820 1050
06-Mar-20 Vesey Park GSO BofA 405 95 182 230 445 790 1100
05-Mar-20 Dryden 74 Euro CLO PGIM Goldman Sachs 412 100 191 250 400 725 1000
25-Feb-20 Avoca CLO XXI KKR BofA 458 89 162 210 315 550 835
24-Feb-20 CIFC European Funding CLO II CIFC Barclays 416 90 168 200 300 550 -
21-Feb-20 Voya Euro CLO III Voya Credit Suisse 355 92 171 210 315 550 850
56
New issue CLOs - YTD20
European Leveraged Insights – July 2020
Source: Creditflux
An Acuris Company
Source: Creditflux 57
CLO resets – YTD20
European Leveraged Insights – July 2020
Pricing date CLO name Manager Arranger Size
Discounted margin
AAA AA A BBB BB B
20-Feb-20 Carlyle GMS Euro CLO 2020-1 Carlyle BNP Paribas 461 92 170 200 330 585retained
18-Feb-20 St Paul's CLO XII ICG Citi 411 92 180 203 320 580 -
07-Feb-20 Invesco Euro CLO IV Invesco BofA 410 93 178 225 310 575 830
04-Feb-20 Sound Point EURO CLO III Sound Point Morgan Stanley 409 95 183 230 320 585pre-
placed
03-Feb-20 Man GLG Euro CLO VI Man GLG Barclays 353 90 183 240 365 610 900
30-Jan-20 Accunia European CLO IV Accunia BNP Paribas 407 98 196 245 360 615 915
28-Jan-20 Penta CLO 7 Partners Group Goldman Sachs 411 95 176 205 310 575 825
27-Jan-20 Harvest CLO XXIII Investcorp Credit Suisse 461 95 175 205 300 575 -
An Acuris Company
High yield bond scorecards
July 2020
An Acuris Company
- Jan-20 (EURbn) Feb-20 (EURbn)Mar-20 (EURbn)
Apr-20 (EURbn)
May-20 (EURbn)
June-20 (EURbn)
Jul-20 (EURbn)
YTD20 (EURbn)
YTD19 (EURbn)
YoY change
High yield bond issuance 14.45 6.56 - 1.37 2.92 15.99 14.30 55.58 50.09 11%
New money issuance 5.38 3.38 - 1.17 1.07 11.18 5.56 27.74 19.45 43%
Refinancings 9.07 2.88 - 0.20 1.85 4.81 8.74 27.55 30.26 -9%
HY Bond M&A issuance (ex. LBOs) 1.22 1.56 - - - 1.53 0.18 4.49 8.91 -50%
LBO bond issuance 0.06 - - - - 6.03 0.32 6.41 0.81 696%
Sponsored bond issuance 3.40 2.09 - - 0.61 6.48 2.93 15.51 5.40 187%
HY bonds refinancing loans 3.55 1.46 - 0.46 0.41 1.34 3.81 11.03 1.17 843%
Reverse Yankee issuance 1.20 2.18 - 0.47 0.59 1.83 1.18 7.43 2.23 234%
- 2Q19 3Q19 4Q19 1Q20 2Q203Q20 to
dateYTD 2020 -
Wtd. Avg. yield to maturity –fixed rate bonds 4.56% 4.83% 4.50% 3.73% 4.76% 4.40% 4.26%
ICE BAML Euro HY Index 2.51% 1.29% 1.98% -14.63% 11.25% 1.78% -3.34%
59
High-yield bond market scorecard
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
High-yield bond issuance overview
July 2020
An Acuris Company
61
High-yield bond issuance – Monthly*
Source: Debtwire Par
7.5
14.1
7.8
0.9
8.1
15.117.0
7.4 7.5
5.2
8.57.4
9.4
5.4
10.3
2.9
5.5 5.7
3.0 0.42.1
3.4
6.7
9.810.9
5.3
11.9
2.2
12.9 13.011.1
2.4
14.5
6.6
1.42.9
16.014.3
0
2
4
6
8
10
12
14
16
18M
ay
-17
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Jun
-18
Jul-
18
Au
g-1
8
Se
p-1
8
Oct
-18
No
v-1
8
De
c-1
8
Jan
-19
Fe
b-1
9
Ma
r-1
9
Ap
r-1
9
Ma
y-1
9
Jun
-19
Jul-
19
Au
g-1
9
Se
p-1
9
Oct
-19
No
v-1
9
De
c-1
9
Jan
-20
Fe
b-2
0
Ma
r-2
0
Ap
r-2
0
Ma
y-2
0
Jun
-20
Jul-
20
EU
R b
n
25.4
53.1
18.2
8.9
31.3 29.3
9.0 8.2 8.6
29.5 28.6
19.426.6
31.1
16.8
39.4
21.1 22.218.8
9.112.2
26.0 26.9 26.521.0 20.3
14.3
0
10
20
30
40
50
60
EU
R b
n
High-yield bond issuance – Quarterly*
European Leveraged Insights – July 2020
*Subject to further updates as more data is collected
An Acuris Company
62
High-yield bond issuance – Use of proceeds – 2020 to date
27.6
11.0
6.45.4
4.5
0.3 0.20.0
5.0
10.0
15.0
20.0
25.0
30.0
Refinancing Refinancing Loan LBO General Corporate Acquisition Restructuring Dividend Recap
EU
R b
n
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
63
High-yield bond issuance by rating* – 2020 to date
13.0
6.6
5.3
9.7
7.9
4.7
3.4
5.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
>=BB+ BB BB- B+ B B- <=CCC+ N/A
EU
R b
n
*Based on universe of loans that are rated. Where split rated, higher rating is used. Only Moody’s and S&P ratings are considered.
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
64
M&A high-yield bond issuance - Monthly
Source: Debtwire Par
0.3 0.11.4
0.6 0.1 0.31.0
0.20.8 1.0
0.11.2 1.4
0.7 0.3 0.1 0.3 0.6 0.90.0 0.2 0.1 0.5 0.1
2.4
5.5
1.3 0.9 0.0 1.2 1.6 1.5
0.20.1
0.1
0.30.5
0.7
0.60.4 0.2
0.6
1.8 4.1
0.5
1.4 1.3
0.3
0.30.5
0.52.2
2.2
0.1
6.0
0.30
1
2
3
4
5
6
7
8M
ay
-17
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Jun
-18
Jul-
18
Au
g-1
8
Se
p-1
8
Oct
-18
No
v-1
8
De
c-1
8
Jan
-19
Fe
b-1
9
Ma
r-1
9
Ap
r-1
9
Ma
y-1
9
Jun
-19
Jul-
19
Au
g-1
9
Se
p-1
9
Oct
-19
No
v-1
9
De
c-1
9
Jan
-20
Fe
b-2
0
Ma
r-2
0
Ap
r-2
0
Ma
y-2
0
Jun
-20
Jul-
20
EU
R b
n
LBO
Non-LBO
1.5
15.1
2.2 1.0
10.5
3.82.4
0.4 0.4 0.72.1 1.5
3.01.3 2.0 1.5 1.9 3.2
0.8 1.5 0.82.6
5.6
2.1 2.8 1.50.2
0.9
2.1
1.30.9
1.4
4.2
1.93.6
1.6 0.1
0.7 0.7 0.1 0.4 1.7 1.21.8 6.0
1.60.8
2.6
2.2 0.16.0
0.30
2
4
6
8
10
12
14
16
18
20
EU
R b
n
LBO
Non-LBO
M&A high-yield bond issuance - Quarterly
European Leveraged Insights – July 2020
An Acuris Company
65
Sponsored high-yield bond issuance - Monthly
Source: Debtwire Par
1.20.7
0.3
1.4 1.2
5.1
2.82.1 2.0
1.0 0.7
2.6
0.2
4.4
0.5
2.1 1.8 1.40.4 0.4 0.0 0.1 0.5
2.6
0.51.3
0.5
3.2
5.1
0.90.0
3.4
2.1
0.6
6.5
2.9
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00Ju
n-1
7
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Jun
-18
Jul-
18
Au
g-1
8
Se
p-1
8
Oct
-18
No
v-1
8
De
c-1
8
Jan
-19
Fe
b-1
9
Ma
r-1
9
Ap
r-1
9
Ma
y-1
9
Jun
-19
Jul-
19
Au
g-1
9
Se
p-1
9
Oct
-19
No
v-1
9
De
c-1
9
Jan
-20
Fe
b-2
0
Ma
r-2
0
Ap
r-2
0
Ma
y-2
0
Jun
-20
Jul-
20
EU
R b
n
2.3
5.3
3.2
1.0
3.0
7.4
3.74.9
1.8 1.4 1.5
4.8 4.62.9 2.4
9.1
5.2
3.4
7.0
3.5
0.5
3.6 4.95.9 5.5
7.1
2.9
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
EU
R b
n
Sponsored high-yield bond issuance - Quarterly
European Leveraged Insights – July 2020
An Acuris Company
66
High-yield bonds refinancing loans - Monthly
Source: Debtwire Par
0.81.1
0.8
1.51.1
2.3
0.2 0.3
1.00.6
1.7
0.2
0.9
0.20.6
0.8 0.8
0.00.5 0.6 0.9
3.6
0.40.9
3.6
1.5
0.5 0.4
1.3
3.8
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5M
ay
-17
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct
-17
No
v-1
7
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Jun
-18
Jul-
18
Au
g-1
8
Se
p-1
8
Oct
-18
No
v-1
8
De
c-1
8
Jan
-19
Fe
b-1
9
Ma
r-1
9
Ap
r-1
9
Ma
y-1
9
Jun
-19
Jul-
19
Au
g-1
9
Se
p-1
9
Oct
-19
No
v-1
9
De
c-1
9
Jan
-20
Fe
b-2
0
Ma
r-2
0
Ap
r-2
0
Ma
y-2
0
Jun
-20
Jul-
20
EU
R b
n
4.0
1.81.3 1.1
0.1
1.4
0.2
6.0
3.8
0.61.6
3.3
2.2
3.6
1.9 1.9 1.6 1.7
0.01.1 0.9
4.8 5.0
2.2
3.8
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
EU
R b
n
High-yield bonds refinancing loans - Quarterly
European Leveraged Insights – July 2020
An Acuris Company
67
Reverse Yankee high-yield bond issuance
Source: Debtwire Par
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
EU
R b
n
European Leveraged Insights – July 2020
An Acuris Company
Source: Debtwire Par
No. BorrowerCountry of
riskSector UoP Rating Size Seniority Maturity IPTs Priced Bookrunners Close date
1 Paymentsense UKServices (other)
Refinance - GBP 290msenior
secured2025 8.75% area 8% JPM 31/07/2020
2 DoValue ItalyFinancial Services
Acquisition BB/BB EUR 265msenior
secured2025 -
98.913, 5.25% yield
Barc, CS, Medio, UC 31/07/2020
3 Ado Properties Germany Real Estate Acquisition BB+ EUR 400msenior
unsecured2025 3.75% area
98.871, 3.25% coupon
JPM, Barc, DB 29/07/2020
4 Pheonix Pharma GermanyMedical:
Pharmaceuticals
GCP BB+ EUR sub-bmk senior 2025 2.75% yield2.375% coupon,
2.5% yieldCom, CA, ING, UC 29/07/2020
5Domestic &
GeneralUK
Financial Services
GCP - GBP 100msenior
secured2026 - 100.5 Barc 28/07/2020
6 Faurecia France Automotive Refinance BB/Ba2/BB+ EUR 250msenior
unsecured2025/2028
96.25-96.75/low 4%s
97.5/3.182% BNP, CA, Nat, SG 28/07/2020
7 Miller Homes UK Construction Refinance BB-/BB GBP 160msenior
secured2024 - 100.5 HSBC 27/07/2020
8 Stonegate UK Leisure Acquisition -GBP
950m/EUR 300m
senior secured
2025 -8.25%/E+
575bps, 93Barc, GS, Nom, DB,
Lloyds24/07/2020
9 Intrum NorwayFinancial Services
Refinance BB/Ba2/BB EUR 500msenior
unsecured2025 - 4.875% MS, Nord, SEB 24/07/2020
10 Inter Milan Italy Leisure GCP BB EUR 75msenior
secured2022 - - JPM 24/07/2020
11 Gamenet Italy Leisure Refinance - EUR 640msenior
secured2025 -
6.25% par, E+ 600bps 98 OID
CS, Barc, UC 16/07/2020
12 Carnival USA Leisure GCP - EUR 400msenior
secured5.5NC3 10.5% area 10.125% JPM, GS, DB 15/07/2020
13 AMS AG AustriaIndustrial:
ElectronicsRefinance BB-/BB-/Ba3 EUR 200m
senior secured
2025 - 100.75 UBS, HSBC 13/07/2020
14 Diebold Nixdorf GermanyComputer software
Refinance B-/B3 EUR 350msenior
secured5NC2 low 9%s 9.125% yield
JPM, PNC, BofA, CS, DB, USB
09/07/2020
15 Verisure SwedenServices (other)
Refinance B/B1EUR 500m-
700msenior
secured6NC2 - 3.875% GS, BofA, MS 09/07/2020
16 Parts Holding France Automotive Refinance B-/Caa1 EUR 300msenior
secured2025 6.5%-6.625% 6.5% Citi, BNP, SG 08/07/2020
17 Algeco UK Construction GCP B-/B2/B+ EUR 150msenior
secured2023 - 94 GS 02/07/2020
18 B&M Retail UKConsumer:
RetailRefinance BB-/Ba3 GBP 350m
senior secured
2025 3.75%-4% 3.625% BNP, HSBC 02/07/2020
19 Renk Germany Automotive LBO B/B1 EUR 320msenior
secured2025 6%-6.25% 5.75%
GS, Comm, CS, DB, UC
02/07/2020
20 Titan Cement Greece Construction Refinance BB EUR 250msenior
unsecured2027
2.875%-3.125%
2.75% HSBC, SG, Citi 02/07/2020
68
Recently closed high-yield bond deals issued in YTD 2020
European Leveraged Insights – July 2020
An Acuris Company
High-yield bond pricing
July 2020
An Acuris Company
70
Fixed rate / Floating rate breakdown – 2020 to date
Source: Debtwire Par
92%
8%
Fixed Rate
Floating Rate
European Leveraged Insights – July 2020
An Acuris Company
71
New issue high-yield bond pricing* – Fixed-rate bonds
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.02
Q1
4
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
3Q
20
to
da
te
All
Sr. Unsecured
Sr. Secured
We
igh
ted
Av
g. Y
ield
to
Ma
turi
ty (
%)
*where yield to maturity available
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
72
High yield bond pricing – Fixed-rate bonds
3%
3%
4%
4%
5%
5%
6%
6%
2015 2016 2017 2018 2019 2020 YTD
All
Sr. Unsecured
Sr. Secured
We
igh
ted
Av
g. Y
ield
to
Ma
turi
ty (
%)
*EUR issues only
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
High-yield bond stats by industry
July 2020
An Acuris Company
Industry Amount iss. (EURbn) No. of deals Share of iss. (%) Share of deals (%) Wtd. avg. YTM (%)
Industrials & Chemicals 17.25 21 21.43% 31.03% 4.53%
Telecommunications 7.86 7 7.14% 14.14% 4.00%
Technology 5.25 6 6.12% 9.44% 2.42%
Media 4.19 5 5.10% 7.53% 4.76%
Leisure 3.47 6 6.12% 6.25% 6.99%
Business Services 3.43 5 5.10% 6.17% 2.52%
Energy, Mining & Utilities 2.55 4 4.08% 4.60% 6.03%
Financial Services 2.44 6 6.12% 4.39% 5.85%
Construction 2.33 9 9.18% 4.19% 4.39%
Pharma, Medical & Biotech 1.75 4 4.08% 3.15% 2.84%
Utilities (other) 1.56 3 3.06% 2.81% 2.00%
Transport 1.51 11 11.22% 2.72% 4.75%
Consumer 1.31 7 7.14% 2.36% 4.90%
Real Estate 0.60 3 3.06% 1.07% 4.07%
Agriculture 0.09 1 1.02% 0.17% -
74
YTD 2020 high-yield bond issuance by broad sector
European Leveraged Insights – July 2020
Source: Debtwire Par
An Acuris Company
High-yield bond stats by country of risk
July 2020
An Acuris Company
Source: Debtwire Par
Country Amount iss. (EURbn) No. of deals Share of iss. (%) Share of deals (%) Wtd. avg. YTM (%)
Germany 10.34 11 18.6% 11.2% 4.4%
Netherlands 10.33 9 18.6% 9.2% 3.7%
United Kingdom 8.95 17 16.1% 17.3% 5.6%
France 6.30 8 11.3% 8.2% 4.5%
Italy 3.31 9 5.9% 9.2% 3.1%
Spain 2.63 7 4.7% 7.1% 1.7%
Norway 2.35 12 4.2% 12.2% 3.4%
Luxembourg 2.35 3 4.2% 3.1% 3.4%
Sweden 2.26 6 4.1% 6.1% 4.5%
Switzerland 1.68 2 3.0% 2.0% 4.4%
Austria 1.65 3 3.0% 3.1% 5.2%
Ireland (Republic) 1.45 2 2.6% 2.0% 4.9%
Finland 1.08 3 2.0% 3.1% 2.8%
Greece 0.58 3 1.0% 3.1% 4.9%
Belgium 0.32 2 0.6% 2.0% 5.8%
Monaco 0.04 1 0.1% 1.0% 13.0%
76
High-yield bond issuance by country – YTD 2020
European Leveraged Insights – July 2020
An Acuris Company
Secondary market high yield bond snapshot
July 2020
An Acuris Company
Defensive Sectors (STW)
Source: Credit Rubric More in-depth analysis on the European high yield bond market is available on Credit Rubric
0
200
400
600
800
1,000
STW
EUR - Cable & Telecom - STW EUR - Healthcare - STW EUR - Paper & Packaging - STW EUR - Power, Utilities & Infrastructure - STW
An Acuris Company
Consumer Cylicals (STW)
0
200
400
600
800
1,000
1,200
1,400
1,600
STW
EUR - Consumer Goods - STW EUR - Financial Services - STW EUR - Retail - STW EUR - Leisure - STW
Source: Credit Rubric More in-depth analysis on the European high yield bond market is available on Credit Rubric
An Acuris Company
Industrial Cylicals (STW)
0
200
400
600
800
1,000
1,200
1,400
1,600
STW
EUR - Diversified & Other Industrial - STW EUR - Chemicals - STW EUR - Automotive & Aerospace - STW EUR - Business Services - STW
Source: Credit Rubric More in-depth analysis on the European high yield bond market is available on Credit Rubric
An Acuris Company
81
HY bond yields tighten from recent highs
Source: ICE BofA US High Yield Bond Index
European Leveraged Insights –July 2020
1
3
5
7
9
11
13
02
/01
/20
19
16
/01
/20
19
30
/01
/20
19
13
/02
/20
19
27
/02
/20
19
13
/03
/20
19
27
/03
/20
19
10
/04
/20
19
24
/04
/20
19
08
/05
/20
19
22
/05
/20
19
05
/06
/20
19
19
/06
/20
19
03
/07
/20
19
17
/07
/20
19
31
/07
/20
19
14
/08
/20
19
28
/08
/20
19
11
/09
/20
19
25
/09
/20
19
09
/10
/20
19
23
/10
/20
19
06
/11
/20
19
20
/11
/20
19
04
/12
/20
19
18
/12
/20
19
01
/01
/20
20
15
/01
/20
20
29
/01
/20
20
12
/02
/20
20
26
/02
/20
20
11
/03
/20
20
25
/03
/20
20
08
/04
/20
20
22
/04
/20
20
06
/05
/20
20
20
/05
/20
20
03
/06
/20
20
17
/06
/20
20
01
/07
/20
20
15
/07
/20
20
29
/07
/20
20
Yie
ld (%
)
HY bond index
BB bonds
B bonds
An Acuris Company
ISIN Issuer Maturity Coupon Currency Amount Outstanding Defaulted YTM Price Price at prior month end % Change
FR0013237484 Solocal Group 03/15/2022 EUR 397834585 N 0% 68.5836 45.5 50.73%
XS1265917481 LSF9 Balta Issuer Sa rl 09/15/2022 7.75 EUR 234900000 N 21% 77.66667 64.98883 19.51%
XS1710653483 Takko Luxembourg 2 SCA 11/15/2023 EUR 225000000 N 0% 63.5 54.55357 16.40%
XS1710653137 Takko Luxembourg 2 SCA 11/15/2023 5.375 EUR 285000000 N 21% 63.91667 55 16.21%
USG33858AA20 FERROGLOBE PLC 03/01/2022 9.375 USD 350000000 N 76% 43.875 37.76319 16.18%
USG0713NAF71 AVANTI COMMS GROUP PLC 10/01/2022 9 USD 292803560 N 111% 21.6 19.1 13.09%
XS2036842230 SWISSPORT FING SA RL 02/15/2025 9 EUR 250000000 N 61% 22.5 20.09375 11.98%
XS1605600532 LA FINANCIERE ATALIAN 05/15/2024 4 EUR 625000000 N 9% 84.18155 75.62667 11.31%
XS1820760319 LA FINANCIERE ATALIAN 05/15/2025 6.625 GBP 225000000 N 11% 83.92 75.49167 11.16%
XS1820759147 LA FINANCIERE ATALIAN 05/15/2025 5.125 EUR 350000000 N 9% 84.08 75.64208 11.16%
US46567TAA25 Ithaca Energy North Sea plc 07/15/2024 9.375 USD 500000000 N 13% 88.67 80.00833 10.83%
US639365AH88 Navios Maritime Hldgs Inc 08/15/2022 11.25 USD 305000000 N 32% 70.36667 63.5125 10.79%
XS1685704576 Intralot Cap Luxembourg SA 09/15/2024 5.25 EUR 500000000 N 49% 25.65909 23.25 10.36%
XS1647643466 HEMA BondCo I BV 07/15/2022 EUR 600000000 N 0% 70.60714 64.61458 9.27%
XS1945271952 SGL CARBON SE 09/30/2024 4.625 EUR 250000000 N 9% 86.16 80.16667 7.48%
US29273EAC21 ENDO DESIGNATED ACTIVITY CO 07/15/2023 6 USD 56436000 N 14% 80.2125 75.125 6.77%
US47010BAA26JAGUAR LD ROVER AUTOMOTIVE
PLC 02/01/2023 5.625 USD 500000000 N 8% 95.17556 89.4203 6.44%
XS1733958927 ProGest SpA 12/15/2024 3.25 EUR 250000000 N 12% 72.125 67.9375 6.16%
XS1713466222 NOVAFIVES 06/15/2025 5 EUR 325000000 N 12% 73.75 69.76667 5.71%
XS1713465927 NOVAFIVES 06/15/2025 EUR 275000000 N 0% 72.58333 68.75 5.58%
US63938MAD83 Navios Maritime Acquisition Corp 11/15/2021 8.125 USD 670000000 N 54% 61.16667 58.11913 5.24%
XS1634531344 Intrum AB 07/15/2022 2.75 EUR 750000000 N 3% 100.2717 95.63571 4.85%
XS1589970968DISTRIBUIDORA INTERNACIONAL
DE ALIMENTACION SA 04/06/2023 0.875 EUR 300000000 N 30% 50.875 48.53125 4.83%
DE000A14J7A9 Heidelberger Druckmaschinen 05/15/2022 8 EUR 149999512 N 9% 97.9375 93.46875 4.78%
XS1634532748 Intrum AB 07/15/2024 3.125 EUR 900000000 N 4% 95.40938 91.08182 4.75%82
HY Bond Biggest monthly ADVANCERS
European Leveraged Insights – July 2020
Source: Markit,
Based on actively traded bonds in the Debtwire coverage universe
An Acuris Company
83
HY Bond Biggest monthly DECLINERS
European Leveraged Insights – July 2020
Source: Markit
Based on actively traded bonds in the Debtwire coverage universe
ISIN Issuer Maturity Coupon Currency Amount Outstanding Defaulted YTM Price Price at prior month end % Change
XS1608040090 Senvion Hldg GmbH 10/25/2022 3.875 EUR 400000000 Y 0% 1.005 2 -49.75%
XS1028948047 Pizzaexpress Fing 1 PLC 08/01/2022 8.625 GBP 128137000 N 247% 7.40125 14.15 -47.69%
US91889DAF33 VALARIS PLC 10/01/2044 5.75 USD 1000500000 N 94% 6 7.8125 -23.20%
US91889DAD84 VALARIS PLC 03/15/2025 5.2 USD 333742000 N 112% 6.075 7.72143 -21.32%
US91889DAB29 VALARIS PLC 10/01/2024 4.5 USD 303358000 N 118% 5.76786 7.3 -20.99%
US91889DAC02 VALARIS PLC 01/31/2024 8 USD 292329000 N 169% 6.02143 7.6 -20.77%
US91889DAE67 VALARIS PLC 02/01/2026 7.75 USD 1000000000 N 144% 5.625 7 -19.64%
XS1807435026 VALLOUREC 10/15/2023 6.375 EUR 400000000 N 32% 50.82125 60.6092 -16.15%
XS1807435539 VALLOUREC 10/15/2023 6.375 EUR 400000000 N 32% 50.82125 60.6092 -16.15%
XS1700480160 VALLOUREC 10/15/2022 6.625 EUR 550000000 N 41% 53.4 63.425 -15.81%
XS1700591313 VALLOUREC 10/15/2022 6.625 EUR 550000000 N 41% 53.4 63.425 -15.81%
XS1074643013 OFFICINE MACCAFERRI SPA 06/01/2021 5.75 EUR 190000000 N 220% 31 36.595 -15.29%
FR0012188456 VALLOUREC 09/30/2024 2.25 EUR 500000000 N 25% 45.35 53.491 -15.22%
XS1517932585 EnQuest PLC 04/15/2022 7 USD 772168183 N 50% 54.2 63.05 -14.04%
US91889DAA46 VALARIS PLC 03/15/2021 4.7 USD 113507000 N 1689% 6.09 7 -13.00%
FR0010154385 CASINO GUICHARDPERRACHON 12/31/2099 EUR600000000
N 0% 25.24063 28.97071 -12.88%
US458204AQ79 INTELSAT LUXEMBOURG SA 06/01/2023 8.125 USD1000000000
Y 0% 5.125 5.8125 -11.83%
US893817AA41 Transocean Inc 04/15/2027 7.45 USD 100000000 N 36% 29.58 33.525 -11.77%
XS1647645081 HEMA BondCo II BV 01/15/2023 8.5 EUR 150000000 N 431% 2.125 2.39583 -11.30%
FR0013285046 VALLOUREC 10/04/2022 4.125 EUR 249999998.3 N 0% 3.4 3.81 -10.76%
XS1043961439 OBRASCON HUARTE LAIN SA 03/15/2022 4.75 EUR 323019000 N 57% 49.375 54.975 -10.19%
XS1513776614 CODERE FIN 2 LUXEMBOURG SA 11/01/2021 7.625 USD 300000000 N 56% 60.1 65.957 -8.88%
XS1206510569 OBRASCON HUARTE LAIN SA 03/15/2023 5.5 EUR 269869000 N 38% 49.3 54.0125 -8.72%
XS1756359045 Selecta Group BV 02/01/2024 EUR 375000000 N 0% 34.64286 37.84894 -8.47%
XS0880578728 EnQuest PLC 04/15/2022 7 GBP 177866063 N 44% 58.5 63.875 -8.41%
An Acuris Company
84
DEBTWIRE SALES
Angus Codd, Head of Sales, Debtwire EMEA+44 (0)20 3741 1002,
Olivia Cummins, PR Executive+44 (0)20 3741 1129
European Leveraged Insights
July 2020
DEBTWIRE PAR
Colm (C.J.) Doherty, Global Head of Primary Market Analysis,
+1 212 390 7838
Darren Maharaj, Head of EMEA Fixed Income Data,
Jason Huang-Jones, Head of APAC Fixed Income Data,
Nancy Tai, Head of Americas Fixed Income Data,
Diana Apedu, Market Analyst
Ben Watson, Market Analyst
Vincent Daigger Senior Market Analyst
Mario Mariott, Senior Market Analyst
Victor Mukete, Market Analyst
Wafaa Makhrobi, Market Analyst
Manohar Vasnani, Senior Analyst
Shivraj Shetty, Senior Analyst
An Acuris Company
EMEA
10 Queen Street Place
London
EC4R 1BE
United Kingdom
+44 (0)203 741 1000
Asia
Suite 1602-6
Grand Millennium Plaza
181 Queen’s Road
Central Hong Kong
+ 612 9002 3131
Americas
1501 Broadway
8th Floor
New York
NY 10036
NY 10013 USA
+1 212 500 7537
Disclaimer
We have obtained the information provided in this report in good faith from sources that we consider to be reliable, but we do not independently verify the information. The information is not intended to provide tax, legal or investment advice. We shall not be liable for any mistakes, errors, inaccuracies or omissions in, or incompleteness of, any information contained in this report. All such liability is excluded to the fullest extent permitted by law. Data has been derived from company reports, press releases, presentations and Debtwire intelligence.
Debtwire is an Acuris company
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