State Street Goes Private Credit Shopping
BlackRock's $1.3 billion private credit fund, Hong Kong's HKBN $800 million loan.
Good day. Private credit is proving to be an attractive option for dividend seeker. Also with Trump’s win and interest rates expected to drop, the potential impact of private credit returns is what considering
Let's dive into the week's happenings.
Industry News
State Street is currently engaged in the acquisition of a private credit firm (Link)
BlackRock has announced plans to establish a private credit continuation fund with an investment of $1.3 billion (Link )
Blackstone Inc. aims to raise $3.6 billion in junior debt to facilitate the acquisition of AirTrunk, a prominent data centre platform in the Asia Pacific region( Link)
Golub Capital, a United States-based asset management firm, has successfully executed a $1.7 billion collateralised loan obligation (CLO) reset, which represents the second-largest transaction arising from the merger of four CLOs( Link )
Piper Sandler Companies and BC Partners Credit have disclosed a strategic alliance(Link)
Huayou Cobalt, a Chinese supplier of cobalt and related products, is seeking to secure $2.7 billion in bank debt from HSBC and Standard Chartered to support a Ford-backed nickel processing plant in Indonesia ( Link)
Standard Profil, a German manufacturer of automobile parts, is actively pursuing the refinancing of its $295 million debt ( Link )
Commercial properties are facing a significant increase in loan defaults, thereby posing a systemic risk to financial institutions Link)
Talking Point
The rising trend of consumer debt associated with cosmetic procedures is leading to a new financial innovation: repackaging this debt as bonds. Speciality lenders increasingly finance the bills generated from these cosmetic treatments, as these lenders are drawn to this market due to the unusually high credit scores of the borrowers, which typically indicate a lower risk of default. (Link)
Dealflow
Industrial
Brookfield the investment firm is in negotiations to refinance a $700 million loan of Sunac China the Shanghai office complex and developer to reduce its onshore debt load.
Technology/ Media / Telecoms
HKBN the Hong Kong broadband service provider is seeking $800 million loan to refinance its current debt holding
Atlen the French engineering is to acquire Atos for $294 million including a debt
Financial Services
HPS Investment Partners and a group of investors will provide a $1 billion in private credit funding to Ocorian the asset management firm
Logistics and Transport
Abra Group the leading lender to GOL the Brazilian budget airline is to take over ownership of the company as part of the $2.5 billion debt restructuring.
In the Chart
As expectations for interest rate cuts loom on the horizon, particularly with the implementation of Trumponomics, it raises the question of whether private credit returns will continue to experience upward momentum.(Link)
PCW ’s Picks
A closer look at private credit corporate glossary( Link)
Private credit becomes an attractive option to dividend seekers ( Link)
The bull and bear of private credit ( Link)
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