This Week in Private Credit
Plus: World Bank to issue $1 billion debt, Riddell raises $400 million, SBB $176 million debt buyback, Solvay $1.6 billion bond issue
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Let's dive into this week's fast-changing world of private credit.
Top Headlines
Nomura Holdings plans to expand its U.S. credit portfolio to $50 billion through small acquisitions within ten years (Reuters).
Interests paid-in-kind (PIK) rises in US private middle-market loans ( Fitch )
The World Bank plans to issue up to $1 billion in a debut hybrid note through the capital markets this year ( Reuters)
AGL Credit Management has launched the AGL Private Credit Platform in exclusive cooperation with Barclays ( Barclays)
European Leveraged Loan Defaults Rise ( Fitch)
Dealflow
Consumer
BC Partners’s credit unit has agreed to provide $400 million to Riddell, the sports equipment provider for American football, which will provide shareholders, including Fenway Partners, with anticipated dividends. (SBJ)
Leading Private credit funds are working on a $2.5 billion financing package for the sale of Trivium Packaging by shareholders Ardagh Group and OTPP (Bloomberg).
Home Depot Inc., the US multinational home improvement retail firm, plans to take $12.5 billion in debt to help fund its proposed acquisition of SRS Distribution Inc., the building-products distributor. (WSJ)
Citigroup has sold up to $433 million of guaranteed cash-settled exchangeable bonds due April 2029, referable to LVHM, the French multinational holding and conglomerate group's performance (BNN)
Apollo Global Management is in talks to provide a debt financing package of $1 billion to fund Saks Fifth Avenue’s potential purchase of Neiman Marcus (Bloomberg)
Technology
Japanese technology conglomerate Rakuten has raised $1.25 billion in high-yield bond offering( TEM)
Yellow Pages Owner Thryy Holdings is talking with private credit providers to raise $350 million to refinance its debt. ( Bloomberg )
Cloud Computing Company Lambda has secured a $500 million loan from lenders including Macquarie Group (DCD)
Energy
Enbridge Inc, the Canadian energy company, raised $3.5 billion in a four-part bond offering with a yield of 145 basis points ( Bloomberg)
Real Estate
SBB, the Swedish real estate group, plans to pay $176 million to buy back 407.7 million euros worth of debt at a discount of 60% compared to the debts' original value ( Reuters)
FinanceÂ
Cornell University is to raise $1.1billion in the issuance of taxable and tax-exempt bonds (BondBuyer)
Crypto miner Bitdeer Technologies Group is seeking $100 million with its discussion with private credit firms (Bloomberg )
Apollo Global will acquire Credit Suisse's $8 billion securitised products business from UBS ( Reuters).
Industrial
Solvay, the Belgian chemical and plastic manufacturer, has issued $1.6 billion in bonds. The first since the company's split (Bloomberg)Â
Superior Industries, the world's leading aluminium wheel supplier through Centerview Partners, is discussing with private credit lenders to refinance its $270 million debt. ( Bloomberg)
Logistics
The private prison operator GEO Group has entered into an exchange agreement of $177 million in aggregate principal amount of the outstanding 6.50% Exchangeable Senior Notes for a current estimated valuation of $305 million.(Businesswire )
Brightline, a Fortress Investment Group-backed company and Florida's high-speed rail system plans to raise $3.2 billion—$2.2 billion of investment-grade municipal bonds and $1 billion of junk bonds to refinance its existing debt. ( Bloomberg)
In the Chart
Infrastructure debt funds had an impressive 2023, as private credit fundraising shows how popular the asset class is.
The Readout
Sovereign Wealth Funds and Big Pension Funds are tapping into the Private Credit boom (SWFI)
Has private credit reached its peak ( IFRE)
Most companies still see private capital as a financing option for companies (Skadden )
Risk perspectives on Asia Pacific's private credit markets are emerging( Control Risk)
China's infrastructure investments funding source is coming from Chinese LRGs special-purpose bonds ( Fitch)
People
Surging demand for private credit talent see pay rate hike (WSJ)
Fiera Capital has hired a head of Japan with a private credit focus. (ACI)
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