High Yield Primary

Another hopeful recovery story, French catering and facilities group Elior was out on Monday with a €500m Senior Notes due 2026 offering (Ba3/BB-). LTM EBITDA sits at just €30m, compared to around €300m in FY2019, as closures limited meals served, and stricter health protocols were imposed in French schools. In response to the pandemic, the group secured a €225m PGE loan in March-2020 and lenders agreed to a covenant holiday in May (later extended through to September-2022). The estimated Covid impact was €1bn in revenue and €268m in Adjusted EBITDA for the year ended September-2020.

Initial price talk of low 4s cut back to the 3.875% area, before settling at 3.75% with a €50m upsize. An unsecured, €100m term loan and €350m RCF also formed part of the transaction.

Next up came Ontex, a producer of disposable hygiene products - either via one of the Ontex brands (46%) or their retail customers ‘own-brand’ versions (54%) - marketing €580m Senior Notes due 2026 (B1/BB-). With existing facilities maturing in September-2022, the clock was ticking for a full capital structure refinancing, and the new Notes came alongside bank commitments for a €470m unsecured loan (including a €250m RCF). IPTs of high 3s came in slightly to price talk of 3.50-3.75%, before landing at the tight end.