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Apax Partners to launch listed fund investing in equity and debt

Private equity group Apax Partners is to launch a listed investment vehicle that will invest in public and private debt, as well in private equity deals backed by its traditional buyout funds.

Apax Global Alpha (AGA) is hoping to raise €250 million when it debuts on the LSE next month. It has already secured commitments from a group of cornerstone investors totalling €135 million so far, Apax said.

The fund will aim to invest in private equity investments made by Apax funds, as well as committing capital to the funds themselves. It will also invest in public and private debt opportunities derived through Apax’s insights from its private equity activities, which Apax calls “derived investments”. Once fully invested, the fund will aim to be equally invested between private equity and derived investments. Debt investments will include sub-investment grade and unrated debt instruments, Apax said.

Prior to admission, the fund will acquire PCV Lux, a fund formed in 2008 as an investment vehicle for Apax employees. PCV’s NAV as of March 31, 2015 stood at €611.1 million, and PCV’s assets include investments in and commitments to four Apax buyout funds, as well as investments in debt and equities.

The fund is targeting an annualised total shareholder return of 12-15% (net of fees and expenses), including a dividend yield of 5% of NAV once fully invested. – Oliver Smiddy

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Panter joins Oak Hill as portfolio manager

Lucy Panter has started a new role at Oak Hill Advisors, according to market sources. She has joined as a portfolio manager in the performing loan business, and her hire comes as part of Oak Hill’s drive to beef up its business lines across the board.

Panter was previously a portfolio manager at GoldenTree Asset Management, responsible for overseeing the firm’s European CLO business, and also covered the firm’s European consumer, retail, and leisure investments.

Prior to joining GoldenTree in September 2005, Panter held positions at P. Schoenfeld Asset Management, and at Goldman Sachs in New York. – Sarah Husband

twitter icon Follow Sarah on Twitter for CLO market news and insight.

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HSBC hires Morrish and Heath for loans trading team

Grieg Morrish and Mark Heath have left BNP Paribas and Commerzbank, respectively to join HSBC’s loan trading team. Both will be joining late summer.

Morrish, who will be a crossover loans trader at HSBC, joins from BNP Paribas’s secondary loans trading team. Morrish left his post at Invesco in 2011 to move to BNP Paribas. Heath was previously a senior loan trader at Commerzbank, and will be joining HSBC as a par loan trader. – Nina Flitman

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Altice buys 70% of Suddenlink; new debt financing to be raised

Altice has announced that it will acquire 70% of Suddenlink from BC Partners, CPP Investment Board and Suddenlink management, with BC Partners and CPP Investment Board retaining a 30% stake. The purchase values Suddenlink at an enterprise value of $9.1 billion and 7.6x synergy-adjusted EBITDA. J.P. Morgan, PJT Partners and BNP Paribas acted as financial advisors to Altice.

The transaction is to be financed with $6.7 billion of new and existing debt at Suddenlink, a $500 million vendor loan note from BC Partners and CPP Investment Board, and $1.2 billion of cash from Altice. Market sources suggest that given the size of the debt raise, loan and bond issuance on both sides of the Atlantic is a distinct possibility.

The transaction is expected to close in the fourth quarter of 2015 once applicable regulatory approvals have been obtained.

Altice S.A. (holdco) bonds are underperforming on the news while Altice International bonds are largely stable. The 7.25% and 6.25% euro-denominated notes due 2022 and 2025 are both down a point, at 104.25 and 99.75, respectively, while the 7.7% dollar-denominated notes due 2022 are indicated down 75 bps, at 102.25.

This will be Altice’s third jumbo takeover in just over a year. Earlier this year it completed a roughly €6 billion cross-border loan-and-bond financing backing the purchase of the Portuguese assets of Portugal Telecom from Oi for a €7.4 billion enterprise value.

In April last year Numericable and Altice completed a $16.67 billion, seven-tranche, euro and U.S. dollar offering that shattered records to become the largest bond deal on record, along with $5.2 billion in Numericable loans. The offerings were part of a multi-pronged M&A-related recapitalization under which Numericable purchased telecom firm SFR from Vivendi.

Suddenlink is the 7th largest U.S. cable operator with 1.5 million residential and 90,000 business customers, primarily focused in Texas, West Virginia, Louisiana, Arkansas and Arizona. In 2014, Suddenlink generated revenue of $2.3 billion and EBITDA of more than $900 million. – Luke Millar

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April European Leveraged Loan Issuance Slips To €3.5B As Buyouts Fall Silent

european-leveraged-loan-volume

European new-issue loan volume fell to €3.5 billion in April from €9.1 billion in March, staying on the same up-and-down pattern seen so far in 2015. The trend also looked similar by number of deals – only 12 transactions launched in April, down from the intra-year high of 21 in the prior month.

For the first time since December 2012, none of the new loans launching in April funded a buyout. The sole buyout tracked by LCD in April was financed via the high-yield bond market, namely €400 million of senior secured notes backing the buyout of Senvion by Centerbridge.

In the institutional market, the mismatch between supply and demand persisted as issuance declined to just €2.5 billion in April, less than half the €6.1 billion tracked in the prior month. Meanwhile inflows from repayments ballooned to nearly €9 billion in the month to April 24, as tracked by the S&P European Leveraged Loan Index (ELLI), pushing the Index to the lowest level since 2006 $$.

This chart is taken from a longer piece of analyis, available to LCD News subscribers here, that also details

  • European cov-lite volume
  • European sponsored loan volume
  • Leverage on European loans
  • European borrower source of funding
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Leveraged loans: Global CLO issuance hits $27.58B YTD

global CLO volume

It was another busy week of marketing and pricing in the U.S. CLO market, while Europe saw a single new print, with more expected shortly.

  • Year-to-date, global volume rose to $27.58 billion.
  • U.S. CLO volume totals $24.84 billion for 46 deals, versus $19.92 billion for 39 deals in the same period last year.
  • European CLO volume stands at €2.44 billion from six transactions, versus €2.06 billion for five deals in the same period last year. – Sarah Husband

 

This story was taken from a longer piece of analysis available to LCD News subscribers also detailing

  • March CLOs
  • CLO pipeline
  • Volume: CLO vs Inst’l loans (US and Europe)

 

Follow Sarah on Twitter for CLO market news and insight. 

For more on the CLO market check out LCD’s free Loan Market Primer/Almanac.

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Europe: Biagosch joins Portfolio Value Creation group at CPPIB

Maximilian Biagosch has joined the CPP Investment Board as a senior principal in the Portfolio Value Creation group (PVC), according to market sources. The role is an operational one focusing on the day-to-day management of the private equity and infrastructure assets acquired by the firm.

The new role is a continuation of Biagosch’s previous role at Permira Advisors, where he worked for seven years, most recently as head of the Financing Group. At CPPIB he joins former Permira colleague Paul Mullins, who is now global head of the PVC group.

As of Sept. 30, 2014, Toronto-headquartered CPPIB had CAD$234 billion of capital under management globally, with other offices in New York, London, Hong Kong, and Sao Paulo. The London office has 84 employees (as of Sept. 30), working across CPPIB’s three investment departments: Private Investments, Public Market Investments, and Real Estate Investments. – Sarah Husband

Follow Sarah on Twitter for CLO and leveraged loan market news and insights.

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Lloyds appoints four to leveraged loan market team

Lloyds today announced four appointments to its loan market team, with Alaric Fountain-Barber and Alessandro Valenti joining the firm’s leverage debt capital markets business.

Fountain-Barber, who was most recently at Barclays Capital, is understood to have started at the U.K. bank today as a director. He has previously worked in leveraged finance roles at Societe Generale CIB and UBS.

Valenti has made an internal move from Lloyd’s corporate capital structure advisory team to its leverage finance business. Previously, he has worked as a structured finance analyst at Fitch.

Both Fountain-Barber and Valenti report to Carlo Fontana, head of leverage debt capital markets.

Elsewhere in the Lloyds loan team, Nadia Jalal has moved internally from the global corporates relationship team to become an associate within the corporate loan capital markets business, while Ab Shome has joined the bank from RBS as a director on the loan markets real-estate team. – Nina Flitman

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European leveraged loan volume hits post-crash record €78B in 2014

European leveraged loan volume
Europe’s leveraged loan market headed into 2015 in a robust and optimistic mood, despite having encountered bouts of volatility in the latter part of 2014.

New-issue volume for the European leveraged loan market stacked up to €78.4 billion in 2014 – up 17% from the previous year, and the highest reading since 2007 – and the prospect is set fair for further growth in the year ahead.

Last year’s increase can all be attributed to the growth of the institutional market, which consumed €49 billion of new paper, as the European CLO 2.0 market re-established itself as a key part of the overall loan investor base, and a raft of other buyers stepped up their appetite for the product over the course of the year. – Ruth McGavin, Sarah Husband, Luke Millar,