Despite an ‘accommodative monetary policy’ from the European Central Bank (ECB), leveraged loan allocations in Europe during the first quarter of 2015 were down 7% year-on-year (YoY) to €23bn, reports Debtwire.
However, in its report the real-time news and data publisher adds that deal volume in Q115 also declined, to 37 from 45 a year earlier, which meant the average deal size of €623m was 13% higher YoY.
By industry, pharmaceutical companies allocated most funds at €5.9bn in Q115, up 6.1x times YoY. The sharp rise was mainly on the back of Valeant Pharmaceuticals’ €4.9bn-equivalent package. This funded the loan portion of the Quebec, Canada-based multinational’s takeover of US rival Salix Pharmaceuticals, which was first announced in February and completed the following month.
Chemicals and materials groups also featured prominently during the first quarter, raising around €2.9bn via five deals against only €619m in Q115. Ineos, headquartered in Switzerland, came to the market in March to bring down its cost of funding, replacing existing US$1bn 8.375% senior secured notes and €500m senior secured floating-rate notes (FRNs) with a €1.4bn-equivalent dual-currency term loan B (TLB) paying a margin of 3.25%.
Swiss companies allocated €4.7bn in Q115 via three large deals, almost 10 times above last year’s figure. They were led by the carton packaging manufacturer SIG Combibloc’s €2.3bn covenant-lite leveraged buy-out (LBO) package – a deal first announced last November – which funded the company’s takeover by Onex Partners.
The other two players were Ineos and telecom group Sunrise Communications, which signed a €949m deal refinancing the company’s IPO loan in February.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.