Allen & Overys leveraged finance team kicks off 2023 by advising on three high yield bonds

In January 2023, the leveraged finance team advised the initial purchasers in connection with Verisure’s EUR450m 7.125% senior secured notes due 2028 (B1/B), Telecom Italia’s EUR850m 6.875% senior notes due 2028 (B1/B+/BB-) and Emeria's EUR400m 7.750% senior secured notes due 2028 (B2/B/B+).

High yield partner John Kicken commented: “Conditions have been constructive throughout January with many high yield issuers being able to refinance their revolving and other short term debt while adding cash on balance sheet. Deals are being pre-marketed to minimise execution risk, with some issuers launching and pricing intra-day. There are early signs of potential M&A, with larger bank/bond financing packages expected to arrive later in the year. Overall, an encouraging start to the year.”

Partner and co-head of global leveraged finance at A&O, Nick Clark, commented: “It’s remarkable that the team has advised on three notable deals so soon into 2023. This is a promising sign that the high yield market will continue to adapt and thrive in challenging and uncertain times as issuers diversify their funding sources and pursue strategic opportunities. As a team, we are looking to the year ahead with cautious optimism.”

Denise Gibson, partner and co-head of global leveraged finance, added: “The work we have undertaken in January is a sign of emerging green shoots in the market and we anticipate this trend will continue throughout the year. A&O has developed a preeminent reputation in the European high yield market which, when combined with our integrated cross-product and cross-border expertise, enables us to deliver strategic solutions and first class execution for our clients.”

A&O recently bolstered their high yield offering with the hire of Marwa Elborai, who joined A&O in January 2023.

In January 2023, the leveraged finance team advised the initial purchasers in connection with Verisure’s EUR450m 7.125% senior secured notes due 2028 (B1/B), Telecom Italia’s EUR850m 6.875% senior notes due 2028 (B1/B+/BB-) and Emeria's EUR400m 7.750% senior secured notes due 2028 (B2/B/B+).

High yield partner John Kicken commented: “Conditions have been constructive throughout January with many high yield issuers being able to refinance their revolving and other short term debt while adding cash on balance sheet. Deals are being pre-marketed to minimise execution risk, with some issuers launching and pricing intra-day. There are early signs of potential M&A, with larger bank/bond financing packages expected to arrive later in the year. Overall, an encouraging start to the year.”

Partner and co-head of global leveraged finance at A&O, Nick Clark, commented: “It’s remarkable that the team has advised on three notable deals so soon into 2023. This is a promising sign that the high yield market will continue to adapt and thrive in challenging and uncertain times as issuers diversify their funding sources and pursue strategic opportunities. As a team, we are looking to the year ahead with cautious optimism.”

Denise Gibson, partner and co-head of global leveraged finance, added: “The work we have undertaken in January is a sign of emerging green shoots in the market and we anticipate this trend will continue throughout the year. A&O has developed a preeminent reputation in the European high yield market which, when combined with our integrated cross-product and cross-border expertise, enables us to deliver strategic solutions and first class execution for our clients.”

A&O recently bolstered their high yield offering with the hire of Marwa Elborai, who joined A&O in January 2023.