🇨🇦Canada Frontera Energy (-/B+/B), 7.875% 21jun2028, USD | 400 mln Initial issue price (yield): 99.34% The purpose of placing: General Corporate Purposes Refinance Listing: Luxembourg S.E. Bookrunner: Citigroup, Credit Suisse, Itau Unibanco Holdings Depository: Clearstream Banking S.A., Euroclear Bank, Federal Reserve System
🇺🇸USA SM Energy (B2/B-/-), 6.5% 15jun2028, USD | 400 mln Initial issue price (yield): 100% The purpose of placing: To fund the Tender Offer of all of the Company’s outstanding 6.125% Senior Notes due 2022 and $130.0 million of Company’s outstanding 5.00% Senior Notes due 2024, and for general corporate purposes, which may include the repurchase or redemption, as applicable, of some or all of the Tender Offer Notes. Bookrunner: BOK Financial Corporation, Bank of Montreal, Bank of Nova Scotia, Barclays, BofA Securities, Capital One Financial Corporation, Comerica, Goldman Sachs, JP Morgan, KeyBanc Capital Markets, PNC Bank, RBC Capital Markets, U.S. Bancorp, Wells Fargo Depository: Clearstream Banking S.A., DTCC, Euroclear Bank
🇬🇪Georgia Georgian Railway (-/B+/BB-), 4% 17jun2028, USD | 500 mln Initial issue price (yield): 100% (4.88%) The purpose of placing: To finance tender offer for existing 7.75% 11jul2022, USD notes and projects covered by the issuer’s green bond framework Listing: London S.E. Bookrunner: Citigroup, JP Morgan, Renaissance Capital, TBC Capital Depository: Clearstream Banking S.A., Euroclear Bank
🇨🇳China Evergrande’s dollar bonds plunged on Thursday due to a growth of concerns over the company's financial position. Bondholders are continuing to exit frightened by missed payments at the developer’s branches and a report that regulators are investigating company’s ties to an obscure bank in northern China.
Previously, we reported that bonds of China Evergrande plunged as the China Banking and Insurance Regulatory Commission was examining over CNY 100 billion of transactions between the company and Shengjing Bank Co (owner of the huge amount of the company's bonds). In 2019, Evergrande increased its stake in Shengjing Bank by using proceeds from its bonds. At that time, Chinese law required investors to use only own funds to invest in banks, not borrowed.
10% 11apr2023, USD bond fell from 84.341% (June 9) to 79.471% (May 28). 9.5% 11apr2022, USD note slid from 92.01% (June 9) to 86% (June 10). The price figures correspond to the latest data of the Frankfurt Stock Exchange.
🇸🇻The International Monetary Fund said on Thursday it has economic and legal concerns regarding the move by El Salvador to make bitcoin a parallel legal tender, further clouding the outlook for an IMF-backed program and widening spreads on the country's bonds.
Lenovo–Rating revision, Robust performance to be Credit Positive
In June 2021, Moody’s revised the Lenovo group’s rating outlook to positive, and the rating was affirmed at Baa3. The company posted strong performance on all fronts in the financial year 2021. • Lenovo displayed a positive outlook for business and future earnings,it also deleveraged its balance sheet in the previous year. Cost of funds are expected to be lower. • Lenovo’s share price is down 12% over the last month, to HKD 9 levels on the Hong- Kong stock exchanges.
🇨🇺The group of creditors of Cuba said on Thursday they had reached a deal to give more time to the Republic of Cuba to honor several payments due under the 2015 Arrangement, while maintaining the present value of the amounts.
Cuba, after signing an historic agreement with the group in 2015, defaulted on payments last year and only partially met them in 2019.
🔑Rating Actions in Foreign Currency on June 10, 2021
🇹🇯Moody's changed outlook on Tajikistan to stable from negative; affirmed B3 rating. Reasons: "The outlook change to stable from negative reflects progress made by Tajikistan in stabilizing its external payments position over the past year, as indicated in a material increase in foreign currency reserves, which Moody's expects to remain around the current level. As a result, the likelihood of significant pressure on Tajikistan's credit profile from mounting external and liquidity risks has diminished," - Moody's report. 🇨🇬Fitch affirmed the Republic of Congo at 'CCC'.
📍On Thursday, May CPI data rose at its fastest pace in almost 13 years as inflation pressures continued to accelerate in the US. The report boosted the yields but they plunged later as morning trading continued.
Agricultural Bank of China (Hong Kong Branch) (A1/-/-), 1.25% 17jun2026, USD | 500 mln Listing: Hong Kong S.E. Bookrunner: Agricultural Bank of China, BNP Paribas, Bank of China, Bank of Communications, CCB International, CLSA, China Everbright Bank, China Merchants Bank, China Minsheng Banking, Chiyu Banking Corporation, Citigroup, Credit Agricole CIB, DBS Bank, HSBC, Haitong International Securities Group, ICBC, Industrial Bank, Mizuho Financial Group, Nanyang Commercial Bank, Shanghai Pudong Development Bank, Standard Chartered Bank Depository: Clearstream Banking S.A., Euroclear Bank
China Everbright Bank (Hong Kong Branch) (-/-/-), 0.839% 15jun2024, USD | 600 mln Listing: Hong Kong S.E. Bookrunner: Agricultural Bank of China, Bank Of Shanghai, Bank of China, Bank of Communications, Bank of East Asia, CCB International, CITIC Securities International, CLSA, China Everbright Bank, China Industrial Securities International Financial Group, China International Capital Corporation (CICC), China Merchants Bank, China Minsheng Banking, China Securities (International) Finance, Citigroup, Guotai Junan Securities, Haitong International Securities Group, Huatai Securities, ICBC, Industrial Bank, Nanyang Commercial Bank, Natixis, Shanghai Pudong Development Bank Depository: Clearstream Banking S.A., Euroclear Bank
🇰🇼Kuwait Ahli United Bank K.S.C.P. (A2/-/A+), 3.875% perp., USD | 600 mln Initial issue price (yield): 100% The purpose of placing: Basel III Additional Tier 1 Listing: Irish S.E., Nasdaq Dubai Bookrunner: Abu Dhabi Islamic Bank, Citigroup, HSBC, KAMCO, KFH Capital Investment Company, KIB Asset Management, Standard Chartered Bank Depository: Clearstream Banking S.A., Euroclear Bank
📈Revlon bonds increased as the company is reworking debt and balance sheet. The company secured a term loan of $130 with SLR Credit Solutions underwriting it from MidCap Financial. The funds will be used to refinance its debt. Currently, the company has 2 outstanding bonds of $450.