Deals
Leveraged Loans in Europe Dodge Brexit Woes as Junk Bonds Falter
- Four deals signal resilience amid referendum turmoil
- Borrowers still wary of re-igniting high-yield note issuance
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There’s one bright spot in Europe’s stagnant leveraged finance market. Loans are proving resilient in the face of market turmoil following Britain’s decision to leave the European Union.
At least four deals have been struck or offered to investors since the U.K. sent markets spinning with a vote on June 23 to leave the EU. Among them, an 803-million euro ($890 million) loan that backs the acquisition of French property firm Foncia Groupe by Swiss buyout company Partners Group Holding AG will test investor appetite for larger loans. At the same time, no new bonds have been issued in the junk market, an alternative source of funding for low-rated companies.