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Market Wrap

LevFin Wrap - Guarded welcome for fresh securities, Oil be back, Stereo-Tipico refi wave

Huw Simpson's avatar
Laura Thompson's avatar
  1. Huw Simpson
  2. +Laura Thompson
12 min read

High Yield Primary

High Yield supply was again in full flow, as ten new deals launched this week, offering another €8bn in new notes.

In the words of our Editor, the Bain-Cinven spinout of Lonza’s Specialty Ingredients unit was ‘well covered’ this week. You can read our Legals, Loan-Legals, Credit, and Financial QuickTakes for full details, as well as the deal review ‘Lonza to clean-up with Covid hygiene and add backs booster’. If you are not a client but would like copies, please contact us team@9fin.com.

Success for the company revolves around the ability to generate significant cost savings, which will reduce the impact of heavy capex spend on the transformation plan, and separation costs. Even prior to the transaction, the group generates solid FCF, and hopes to further optimize working capital, estimated to increase cash by up to CHF 136m (€124m) in the next 18 to 24 months. Some execution risk remains, however it’s been well noted that the sponsors have a good track record on spinouts.

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