But he added that loan deals currently in the market were
largely extensions or additions to existing loans and there was
no new deal activity yet.
Stark Group's new loan will mature in May 2028 and will
be used to refinance existing debt and repay amounts used under
the revolving credit facility, the memo said.
It will pay 500 bps over Euribor and is offered at a price
of 95 cents on the euro.
The debt sale is led by BNP Paribas and JP Morgan.
($1 = 0.9269 euros)
(Reporting by Chiara Elisei; editing by Dhara Ranasinghe and
Philippa Fletcher)
(Adds context and comments about the junk debt market,
Crossover details.)
LONDON, March 22 (Reuters) - European credit markets are
testing the waters for sales of risky debt after the collapse of
Silicon Valley Bank and the rescue merger between
Credit Suisse and UBS sparked contagion fears
across the financial system.
On Wednesday, building materials distributor Stark Group
started selling a new 400 million euros ($431.56 million) loan,
according to a memo seen by Reuters.
The sale is a test of investor appetite amid fresh ructions
across markets triggered by banking sector turmoil, pushing up
the cost of borrowing for lower-rated issuers.
The iTraxx Europe Crossover, which measures the cost of
insuring exposure to a basket of European junk bonds, was at 471
basis points (bps) on Wednesday, after hitting a four-month peak
a week ago at 515 bps, according to data from S&P Global Market
Intelligence. One loan portfolio manager, who declined to be named, said
pricing in the secondary market had recovered, as had the
Crossover index.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.