There are signs of high yield issuance coming back after recent inactivity, with a number of firms entering the frame.
Already earmarked for a potential €4 billion this year, German auto parts maker Continental said today that it will issue a €500 million bond with a maturity of five-years or more. Investor road-shows for the benchmark issue will take place this week, beginning tomorrow, with a bank consortium led by Citi and Royal Bank of Scotland mandated to sell the notes to investors.
On Friday, packaging company Nordenia priced €280 million of seven-year callable senior second priority notes in line with talk at 98.76 and a 10% yield. Barclays and Deutsche Bank managed the deal.
Phoenix Group is reportedly seeking to raise cash from its £10 billion annuity policies to fund future acquisitions. In its recent restructuring the firm agreed to cap dividends until 10% of its €3 billion debt had been paid down.
