Debtwire

📢 Just released! Debtwire and Mergermarket's 1H24 Buyout Highlights are now available to download 👇 US Buyouts Report: https://lnkd.in/eShp3gZP Europe Buyouts Report: https://lnkd.in/eEGPndGD US buyout volume rebounded in the first half of 2024, rising 36% YoY to USD 146.4bn. US buyout volume accounted for 18% of the country’s total M&A announced in the first six months. A total of 506 buyouts occurred in the first half, compared to 517 a year earlier. Leading the resurgence was the USD 14.9bn acquisition of Endeavor Group by Silver Lake and Mubadala Investments in April. In Europe, buyouts reached their highest half-yearly volume in two years. Financial sponsors disclosed transactions worth EUR 95.4bn during the first six months, an increase of 168% compared to the same period last year. Buyout volume accounted for 24.3% of the continent’s total M&A volume in 1H24. Sponsors signed 615 deals in 1H24, a 7% rise compared to 1H23.

Following its merger with DISH Network earlier this year, Echostar is currently working to refinance $2 billion in debt due in November. Debtwire believes that the Company will end up using its spectrum assets in some form as collateral to address the November 2024 maturity and perhaps raise additional capital so as to stop the “whack-a-mole” style approach to funding. That being said, timing is extremely tight and unforeseen delays could complicate an already volatile situation. In addition, any new debt is likely to carry a higher coupon rate than the DBS 2024 maturity. Stay informed with Debtwire as we continue to monitor Echostar’s next moves, and check out the full report here: https://lnkd.in/ewvTWJ2b Not a subscriber? Trial next-generation Debtwire today: https://lnkd.in/ekCjgphN

In the first half of 2024, restructuring activities across 11 European countries resulted in 198 new mandates for restructuring advisors. These new mandates stemmed from 53 situations involving EUR 121.6bn of debt. Of the 53 restructuring situations, 15 were engaged in an in-court process. These 15 situations generated 68 mandates (34.3% of the total) on EUR 16.9bn debt (13.9% of the total). The other 38 situations, which together accounted for 130 mandates on EUR 104.7bn debt, are restructuring out-of-court. For more insights check out our 1H24 European Restructuring Advisory Mandates Report: https://lnkd.in/e2Jpx2rX

We are delighted to announce the initial speaker line-up for the Debtwire Forum Asia Pacific. The Forum will take place on 10 October at the Four Seasons Hotel Hong Kong and online. Join 800+ senior credit professionals at this premium leveraged capital market event to hear from expert speakers on the latest market trends and opportunities in Asian credit. The forum provides editorially driven content through a series of interactive panel discussions, thought-provoking case studies and insightful presentations. Register today (https://lnkd.in/gMaugMcT) to save 20% off the tickets. The Forum is accredited with 6 CPD points by the Law Society of Hong Kong. 🔎 View list of speakers: https://lnkd.in/gZtigGWK #DebtwireAPAC

What are the red flags Mattis Poetter, Partner & Co-CIO of Arcmont Asset Management looks for when assessing potential investments?   Poetter highlights that investors are most concerned about default rates and losses, which is why Arcmont focuses on larger, more stable businesses with diversified revenue streams.   During his conversation with Giovanni Amodeo, the pair also explore his insights on how to carve out a niche in private credit, the evolution of the industry, and his aspirations for the future. Watch the full conversation here: https://lnkd.in/e4pdQ9ZU   #IONInfluencers

Want to know what's happening in Europe's buyout market? Our 1H24 report has got you covered 👉https://lnkd.in/eEGPndGD   European buyouts reached their highest half-yearly volume in two years as financial sponsors emerged in the first half of 2024 after a broad retrenchment in 2023, data from Debtwire and Mergermarket show. Still, the average deal size in Europe is smaller in 2024 than in recent years, with two thirds marketed below EUR 250m, and none of them cracking the EUR 2bn ceiling. Meanwhile, debt financing options are beginning to rebalance. While Europe saw not a single new high-yield bond to back a leveraged buyout in the first quarter, the market reopened in the second quarter with EUR 1.23bn in new HY bonds, the lowest level since the first half of 2017. The number of direct lending deals in Europe fell by nearly half from the first to the second quarter, while the broadly syndicated loan market rose slightly over the same period.

On 6 August 2024, Lumen Technologies, a prominent player in the US telecom sector, reported Q2 2024 revenue of USD 3.27bn, surpassing estimates of USD 3.22bn, and disclosed USD 5bn in new AI-related deals, with the potential for an additional USD 7bn in the near term. Its improved financial outlook and increase in fiber broadband subscribers underscores the potential of AI to drive stability and growth within the sector. For more insights, subscribers can check out our latest credit report on Lumen here: https://lnkd.in/etneXSmf Not a subscriber? Start your free trial today: https://lnkd.in/ekCjgphN

Beauty company Avon Products Inc filed for Chapter 11 bankruptcy in Delaware on August 12th after finding itself in need of immediate liquidity following allegations that its products talc, causing cancer in consumers. Avon Products Inc, the US-based holding company of the international beauty brand, has not sold products in the US since it divested its North American business in 2016 and the US Avon brand is not part of the bankruptcy. The company also noted that it will be business as usual for Avon’s international markets. Brazil-based Natura & Co, which acquired Avon in 2020, has since agreed to purchase the equity interest in Avon’s international operations in the form of a $125m “credit bid” which Avon is hoping will help avoid a long journey in bankruptcy. We'll continue to share updates on Debtwire as the case proceeds, subscribers can follow the story here: https://lnkd.in/dTqp-D-G Not a subscriber? Start your free trial today: https://lnkd.in/de_GYvBw #chapter11 #bankruptcy #AvonProductsInc

Buyout-related leveraged loans and direct lending volumes have seen a spectacular uptick in 2024 thus far, recording a 75% and an 89.4% YoY increase, respectively. Leveraged loan volumes have soared due to three outsized deals, while direct lending saw a renewed interest in buyout transactions this year. In contrast, high yield bond volumes took a nosedive to USD 4.3bn in 1H24 from USD 9.2bn in 1H23, reflecting a 53.6% decrease in leveraged buyout-related volumes. For more insights check out Debtwire and Mergermarket's 1H24 US Buyout Highlights report here: https://lnkd.in/eShp3gZP

Some of Sotheby’s creditors are considering pre-emptive options to protect themselves, after owner Patrick Drahi used aggressive financial maneuvers to address Altice France’s massive debt pile, according to three sources familiar with the matter: https://lnkd.in/e-BM37NN