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COMMENTS

European CLOs: Assessing The Credit Effects Of COVID-19


European CLOs: Assessing The Credit Effects Of COVID-19

At the beginning of 2020, the European collateralized loan obligation (CLO) market was facing several challenges, including credit deterioration, difficult arbitrage conditions, and asset scarcity. CLO investor concerns were typically over corporate credit deterioration and leverage ratios, expected recoveries, and loose documentation. At the macro level, trade wars, Brexit, and extended low rates were among the top risks. In spite of these concerns, CLO issuance started strongly, with several new transactions and senior note spreads dipping to a 20 month low. However, the sudden economic stop caused by the spread of COVID-19 and related containment measures will lead to a global recession, in S&P Global Ratings' view.

We expect a surge in the European speculative-grade corporate default rate to the high single digits over the next 12 months, although the severity will vary significantly by sector and individual credit characteristics. As a result, there could also be an impact on CLOs, which are securities backed by a portfolio of corporate debt, typically senior secured loans made to speculative-grade companies, whose average credit rating is in the 'B' ('B+', 'B', and 'B-') category.

Economic Downturn Set To Pressure EMEA Corporate Ratings

COVID-19 is one of the key challenges the European leveraged loan and CLO market will face in 2020. S&P Global Ratings acknowledges a high degree of uncertainty about the rate of spread and peak of the coronavirus outbreak. Some government authorities estimate the pandemic will peak between June and August, and we are using this assumption in assessing the economic and credit implications. We believe measures to contain COVID-19 have pushed the global economy into recession and could hurt employment levels and housing markets (see our macroeconomic and credit updates here: www.spglobal.com/ratings. As the situation evolves, we will update our assumptions and estimates accordingly.

Although economic data is currently limited, our short-term macroeconomic outlook for Europe has deteriorated and we now expect a contraction in Eurozone GDP of 0.5%-1.0% in 2020, revised down from our previous forecast of 0.5% growth. COVID-19 related disruption will affect economic activity in the first half of the year, with a particularly severe hit in the second quarter as near-lockdown measures adopted across Europe dampen the real economy.

The combined effect of COVID-19, with the collapse in oil prices and extreme volatility in capital markets will inevitably have severe implications for credit. In our view, this will likely mean a surge in defaults, with the speculative-grade corporate default rate potentially increasing to the high single digits in Europe over the next six to 12 months from a base case of 2.3%.

The sharp decline in global demand will reduce corporate cash flow generation across industries, placing pressure on working capital needs, available cash, and revolving facilities, as well as companies' ability to remain operational. Government-led fiscal support for companies (especially smaller ones) will offer an alternative avenue for liquidity in the absence of constructive primary capital markets.

Nevertheless, the impact of the COVID-19 disruption will not be uniform across all industries. Sectors exposed to people mobility and discretionary spending, such as airlines, transportation, leisure and gaming, hotels and restaurants, and retail, are likely to be affected the most. Exposure and reliance on cross-border supply chains is another pressure point weighing on the overall creditworthiness of auto manufacturing and capital goods, for example. We expect credits in the healthcare, software, and telecommunication sectors to be more insulated.

Recent oil price shocks add yet another dimension in assessing vulnerabilities. Though oil at less than $35 per barrel will alleviate the variable cost component of issuers in the chemicals sector, this is likely to be more than offset by top-line contraction and high fixed cost component.

Companies rated 'B-' and below will likely suffer most from financing needs and rapid rating transitions. These companies are most likely to lack the financial flexibility to weather a crisis hitting both their top-line revenue and financing costs. They are also the most exposed to risks of distressed exchange or debt restructuring, which would qualify as a default under our ratings definitions.

Having access to ample liquidity to withstand at least two to three months of severely reduced revenue inflows, a nimble cost base, and access to liquidity will be key. We expect a deluge of covenant waiver and covenant reset requests, additional revolving credit facilities made available to cover working capital and cost shortfalls, and swift and severe cost cutting measures, culminating in distressed exchanges and even forced restructurings. There may also be isolated insolvency cases with limited recovery prospects where emergence as a going concern may not be feasible, particularly for smaller issuers.

So Far, Minimal EMEA CLO Exposure To Downgraded Credits

As of March 25, 2020, we have taken negative rating actions on 208 U.S. and EMEA speculative-grade corporate issuers, to which European CLOs are exposed, for reasons related to the spread of COVID-19, including downgrades, and negative outlook and CreditWatch placements (see tables 1 and 2). On aggregate, these credits are included in the portfolios of 110 European CLOs that we rate, but account for only 7% of the total portfolio exposure by notional amount.

Chart 1

image

Table 1

Rating Actions On EMEA Corporate Credits
Date Issuer Sector Rating Recovery Previous Rating Count of CLOs Count of loans Sum of loans (mil. €) Loan average amount (mil. €) Loan maximum amount (mil. €) Loan minimum amount (mil. €)
March 20, 2020 Vue International Bidco PLC Media & Entertainment B-/Negative 3(65%) B-/Stable 72 147 163.62 1.11 5.09 0.07
March 20, 2020 Hurtigruten Group AS Media & Entertainment CCC+/Negative 3(55%) B-/Stable 45 52 147.20 2.83 6.00 0.25
March 20, 2020 Cassini SAS Media & Entertainment B-/Negative 3(60%) B/Negative 40 58 107.26 1.85 6.50 0.22
March 20, 2020 eDreams ODIGEO S.A. Retailing B/WatchNeg 1(95%) B/Stable 4 4 5.50 1.38 2.00 1.00
March 18, 2020 Cineworld Group PLC Media & Entertainment B/WatchNeg 3(60%) BB-/WatchNeg 18 20 21.80 1.09 4.12 0.32
March 18, 2020 Comet Bidco Ltd. Media & Entertainment B-/WatchNeg 3(60%) B-/Stable 7 7 14.58 2.08 2.71 1.81
March 17, 2020 Codere S.A. Media & Entertainment CCC+/Negative 3(65%) B-/Negative 18 18 51.67 2.87 6.00 1.25
March 17, 2020 Aston Martin Holdings (UK) Ltd. Automobiles CCC-/WatchNeg 4(45%) CCC+/Negative 1 1 0.80 0.80 0.80 0.80
March 16, 2020 Amphora Intermediate II Ltd. Consumer Products B-/Stable 3(55%) B/Stable 6 6 15.40 2.57 4.00 2.28
March 13, 2020 Auris Luxembourg II Sarl (WS Audiology) Healthcare B/Negative 3(55%) B+/Negative 93 100 337.24 3.37 8.00 0.33
March 12, 2020 Garrett Motion Inc. Automobiles & Components BB-/Negative 3(65%) BB-/Stable 25 28 58.30 2.08 5.73 0.61
March 10, 2020 EG Group Ltd. Retailing B/Negative 3(65%) B/Stable 89 190 515.21 2.71 11.76 0.10
March 9, 2020 Promontoria Holding 264 B.V. Transportation B/Negative 4(45%) B/Stable 39 54 76.94 1.42 3.67 0.15
March 9, 2020 Gestamp Automocion Automobiles & Components BB/Negative 2(70%) BB/Stable 1 1 1.00 1.00 1.00 1.00
March 4, 2020 Kongsberg Automotive ASA Automobiles & Components B/WatchNeg 2(75%) B+/Negative 11 16 13.90 0.87 2.00 0.50
March 4, 2020 Travelex Media & Entertainment CCC/WatchNeg 5(15%) B-/WatchNeg 2 2 1.97 0.99 1.47 0.50
March 2, 2020 Planet (Franklin UK Bidco Ltd.) Technology B/Negative 3(50%) B/Stable 34 159 91.38 0.57 4.22 0.01

Table 2

Rating Actions On U.S. Corporate Credits
Date Issuer Sector Current Recovery (senior secured) Previous Count of CLOs Count of loans Loan amount (mil. €) Loan average amount (mil. €) Loan maximum amount (mil. €) Loan minimum amount (mil. €)
March 20, 2020 The Chemours Co. Chemicals B+/Negative 1(95%) BB-/Stable 42 43 113.17 2.63 4.93 0.99
March 20, 2020 Scientific Games Corp. Hotels & Gaming B/WatchNeg B/Positive 16 17 22.52 1.32 3.77 0.25
March 20, 2020 Mohegan Tribal Gaming Authority Hotels & Gaming B-/WatchNeg B-/Stable 3 5 5.37 1.07 1.83 0.41
March 20, 2020 Downstream Development Hotels & Gaming CCC/WatchNeg B/Negative 2 3 3.66 1.22 1.84 0.46
March 19, 2020 Screenvision LLC Media & Entertainment B/WatchNeg 3(65%) B/Stable 3 5 4.51 0.90 1.50 0.75
March 19, 2020 Holley Purchaser Inc. Automotive B-/Negative 3(60%) B-/Stable 3 3 6.78 2.26 2.28 2.25
March 19, 2020 PDC Beauty & Wellness Co. Capital Goods B/Negative 6(0%) B/Stable 3 3 2.07 0.69 0.86 0.45
March 18, 2020 Banff Parent Inc. Technology B-/WatchNeg 3(65%) B-/Stable 69 86 298.97 3.48 11.78 0.49
March 17, 2020 International Game Technology PLC Hotels & Gaming BB/WatchNeg 3(65%) BB+/Stable 16 23 28.85 1.25 3.35 0.50
March 17, 2020 Go Wireless Holdings Inc. Retailing B/WatchNeg 2(80%) B/Negative 1 1 0.27 0.27 0.27 0.27
March 16, 2020 Getty Images Inc. Media & Entertainment B-/WatchNeg 3(60%) B-/Stable 26 29 71.77 2.47 4.73 0.20
March 16, 2020 AMC Entertainment Inc. Media & Entertainment B/WatchNeg 1(95%) B/Stable 1 1 4.77 4.77 4.77 4.77
March 13, 2020 NEP/NCP Holdco Inc. Media & Entertainment B/WatchNeg 6(5%) B/Stable 57 62 127.10 2.05 5.87 0.50
March 13, 2020 Pugnacious Endeavors Inc. Media & Entertainment B/WatchNeg 3(50%) B/Stable 27 29 72.36 2.50 7.00 0.99
March 13, 2020 Carlson Travel Inc. Media & Entertainment B-/WatchNeg 3(60%) B-/Stable 12 12 25.44 2.12 5.70 0.50
March 13, 2020 WireCo WorldGroup Inc. Metals & Mining B/WatchNeg 5(25%) B/Stable 1 2 1.32 0.66 0.88 0.44
March 3, 2020 Samsonite International S.A. Capital Goods BB+/WatchNeg 1(95%) BB+/Negative 1 1 4.00 4.00 4.00 4.00
February 26, 2020 Tenneco Inc. Automobiles & Components B+/Stable 3(50%) BB/Negative 32 49 84.99 1.73 5.00 0.25

Chart 2

image

In aggregate, the universe of European CLOs that we rate is generally well-diversified by issuer, country, and sector, with more than 600 issuers across 27 countries and 60 Global Industry Classification Standard (GICS) industries (see table 3).

Industries reliant on consumer discretionary spending (e.g., travel and high-end retail) and cross-border supply chains (e.g., auto, electronics, and chemicals) are particularly exposed to COVID-19 related risks and will see increased pressure on revenue and earnings (see "Global Credit Conditions: COVID-19's Darkening Shadow," published March 3, 2020).

Table 3

European CLOs Exposure By GICS
GICS Exposure (%) Exposure (€) GICS Exposure (%) Exposure (€)
Software 9.29 4,087,556,989 Household durables 0.90 395,112,920
Health care providers and services 9.13 4,020,345,382 Food and staples retailing 0.88 389,245,559
Chemicals 8.68 3,821,166,115 Technology hardware, storage and peripherals 0.87 383,087,501
Diversified telecommunication services 5.02 2,211,677,971 Marine 0.76 336,432,035
Hotels, restaurants and leisure 4.71 2,071,628,802 Personal products 0.65 287,684,253
Media 4.64 2,042,396,810 Interactive media and services 0.58 255,462,469
Commercial services and supplies 4.50 1,979,739,456 Paper and forest products 0.58 254,214,731
Diversified consumer services 4.08 1,797,797,618 Electric utilities 0.54 239,226,806
Food products 3.70 1,629,631,596 Leisure products 0.43 188,982,791
Capital markets 3.64 1,603,320,341 Biotechnology 0.40 175,093,783
Specialty retail 3.58 1,574,267,948 Textiles, apparel and luxury goods 0.39 172,803,173
Trading companies and distributors 3.45 1,520,416,298 Wireless telecommunication services 0.38 167,802,669
Machinery 3.00 1,320,212,522 Distributors 0.33 147,383,079
Entertainment 2.94 1,291,891,579 Metals and mining 0.32 141,763,734
Pharmaceuticals 2.71 1,194,212,308 Semiconductors and semiconductor equipment 0.23 103,289,655
Building products 1.98 872,759,771 Consumer finance 0.21 93,351,666
Containers and packaging 1.82 801,029,930 Automobiles 0.19 82,180,614
Health care equipment and supplies 1.76 776,271,842 Air freight and logistics 0.17 76,935,000
Real estate management and development 1.33 584,858,713 Transportation infrastructure 0.14 62,752,500
It services 1.30 572,645,124 Electrical equipment 0.11 46,846,524
Electronic equipment, instruments and components 1.18 519,468,880 Construction materials 0.08 37,125,000
Life sciences tools and services 1.14 503,656,088 Household products 0.07 29,687,000
Aerospace and defense 1.14 500,454,326 Project leisure and gaming 0.04 18,650,000
Professional services 1.05 460,298,723 Beverages 0.04 16,396,000
Multiline retail 1.01 445,297,784 Oil, gas and consumable fuels 0.03 11,276,629
Construction and engineering 1.01 442,883,566 Energy equipment and services 0.02 8,471,082
Internet and catalog retail 0.96 423,015,679 Road and rail 0.01 3,454,669
Auto components 0.94 411,655,126 Airlines 0.01 3,000,000
Insurance 0.93 408,206,108

Chart 3

image

Overall CLO performance in fourth-quarter 2019 showed slight credit deterioration compared with the previous three quarters, with an increase in 'CCC' category rated assets, and a worsening of the S&P Global Ratings weighted-average rating factor (SPWARF) and scenario default rates (see "European CLO Performance Index Report Q4 2019," published on March 24, 2020). Most of the other metrics we capture showed stable performance.

Chart 4 shows the CLO exposure by loan amounts per country broken down by current outlook. It also indicates the percentage of exposure amount for that country that has been affected by a COVID-19 related rating action out of the total country exposure.

Chart 4

image

Effect On European CLO Tranches

Considering the speculative-grade corporate rating actions that we have taken since the emergence of COVID-19, several of the affected credits are not present in the portfolios of any European CLOs that we rate. In addition, 25% of the credits with rating actions had their outlook changed to negative, which alone would not alter our credit analysis of CLO portfolios. By contrast, 56% had their rating placed on CreditWatch negative, which our CLO credit analysis treats as a one-notch downgrade.

That said, CLOs benefit from structural features such excess spread, tranching, and the deferability of coupon payments on the mezzanine and junior notes. These factors make CLOs relatively resilient structures, and an increase in corporate downgrades is unlikely to lead to any CLO tranche defaults in the short term. A more likely scenario is that speculative-grade CLO tranches (and possibly some tranches originally rated 'BBB') could be downgraded.

The likely increase in the number of assets falling into the 'CCC' rating category has two effects. First, our stressed scenario default rates for the portfolio would increase, although not significantly. Second, there could also be a breach of the portfolio's documented 'CCC' limit, which could ultimately lead to a breach of coverage ratios. This would mean funds being diverted to repay the senior notes, increasing the CLO's average cost of debt and reducing excess spread.

For example, let's consider a 'AAA' rated CLO tranche, with 38.5% credit enhancement, and an assumed portfolio default rate of 65% in a 'AAA' stress (the scenario default rate; SDR). In general, an increase of 'CCC' category rated assets to 5% is unlikely to cause a downgrade, based on our credit and cash flow models. Similarly, an increase of 'CCC' category rated assets to 15% would increase the SDR by about 2.3 percentage points at the 'AAA' level, 2.8 percentage points at the 'BBB' level, and almost 3.0 percentage points for speculative-grade rating scenarios.

Nevertheless, the cash flow could be negatively affected by this change. In general, when a CLO has 2.5% of excess 'CCC' category rated assets (the amount above the 'CCC' threshold, which is typically 7.5%), this equates to a reduction in the overcollateralization cushion of 0.75%, when using 70% as market value for the 'CCC' excess assets [2.5 x (1-70%)]. If the market value for the 'CCC' excess assets is lower, e.g., 40%, then the erosion in the overcollateralization cushion would be greater, at about 1.5%. Otherwise said, the coverage tests will start breaching earlier and then the senior notes start receiving their principal back earlier.

An increase in corporate default rates could have a similar, albeit more pronounced effect, as even junior 'B-' rated CLO tranches tend to have 6.5%-7.5% credit enhancement and are deferrable in nature. If we consider a 'AAA' rated tranche, with 38.5% credit enhancement, and a 'BBB' rated tranche, with 15% credit enhancement, the increase of defaulted assets to 5% (with a 38% recovery rate for 'AAA' rated notes and 55% for 'BBB') is unlikely to cause a downgrade to the senior note and it may lead to a one notch downgrade for the mezzanine tranche, based on our credit and cash flow model. Similarly, even an increase to 10% of defaulted assets would lead to a likely downgrade of the senior tranches of just one notch, while the mezzanine notes would likely face up to a two-notch downgrade. At the same time, the speculative-grade notes could suffer a greater downgrade.

These are simplified examples, mainly to provide a sense of the risk of downgrade in specific individual scenarios. In our experience, portfolio credit deterioration is not the only factor to consider. Other factors such as decisions to work out the defaulted assets or a sharp deleverage of the senior notes, which would increase the cost of debt of the structure, reducing the excess spread, also play an important role.

That said, we expect that the increases in 'CCC' category rated assets and defaults in the underlying portfolio will lead to a downgrade of the tranches, mainly at the bottom of the CLO capital structure. Even senior tranches, structured with limited cushion, may also see negative rating actions. The specific effect on individual transactions will depend on the structure and portfolio, as well as the collateral manager's role. A collateral manager may be able to boost the CLO's performance by purchasing better credit cheaply, and by building additional par, which would benefit the noteholders. At the same time, a repricing-up of new loans can increase the CLO's weighted-average spread (WAS), which can be used to cure coverage breaches. At the same rating level, for a 1 percentage point increase in the portfolio's WAS, we would usually see about a 3 percentage point increase in the breakeven default rate. Although this somewhat oversimplifies the effect of a relative change in both of these metrics, which will vary slightly among transactions, it presents an approximate indication of what the effect may be. However, this will ultimately depend on the details of each CLO's capital structure.

Appendix

Appendix I

Assets Affected By Recent Rating Actions On Corporate Issuers
Obligor Asset Type ISIN FIGI Rating
AMC Entertainment Holdings Inc. £500 mil 6.375% sr nts due 11/15/2024 Bond XS1512809606 BBG00GX2FRV3 B/WatchNeg
Amphora Finance Ltd. £301 mil fltg rate Facility B bank ln due 04/25/2025 Loan -- BBG00KJQWXF3 B-
Aston Martin Capital Holdings Ltd. £285 mil 5.75% nts due 04/15/2022 Bond XS1533915564 BBG00GB843Z5 CCC-/WatchNeg
Auris Luxembourg III S.a.r.l. EUR1.7 bil fltg rate Term B1 A bank ln due 02/21/2026 Loan -- -- B
Boxer Parent Company Inc. EUR930 mil fltg rate EUR term bank ln due 10/02/2025 Loan US05988HAC16 -- B-/WatchNeg
Boxer Parent Company Inc. EUR301.5 mil 8.375% nts due 09/01/2026 Bond XS1864418857 BBG00LLZ75R4 B-/WatchNeg
Carlson Travel Inc. EUR330 mil nts due 06/15/2023 Bond XS1535991498 BBG00FGQBYD0 B-/WatchNeg
Cassini EUR568 mil Facility B bank ln due 03/28/2026 Loan -- -- B-
CODERE FINANCE 2 (LUXEMBOURG) S.A. EUR500 mil 6.75% nts due 11/01/2021 Bond XS1513765922 BBG00F5F5J00 CCC+
Comet Bidco Ltd. £315 mil fltg rate Facility B1 bank ln due 09/29/2024 Loan -- -- B-/WatchNeg
Crown Finance US Inc. EUR607.643 mil fltg rate Euro Term Loan bank ln due 02/28/2025 Loan US22834KAC53 BBG00JRTZV08 B/WatchNeg
Downstream Development Authority US$270 mil 10.50% nts due 02/15/2023 Bond US26112TAJ51 BBG00JSCPCF1 CCC/WatchNeg
eDreams ODIGEO S.A. EUR425 mil 5.50% nts due 09/01/2023 Bond XS1879565791 BBG00LY8PJV5 B/WatchNeg
EG Finco Ltd. EUR835 mil fltg rate EUR TL Fac B1 bank ln due 02/06/2025 Loan -- -- B
EG Finco Ltd. EUR200 mil TL Second Lien bank ln due 04/20/2026 Loan XAG2902UAB70 -- B
EG Finco Ltd. £400 mil fltg rate GBP TL Fac B bank ln due 02/06/2025 Loan -- -- B
EG Global Finance PLC EUR700 mil 6.25% nts due 10/30/2025 Bond XS2065633203 -- B
EG Global Finance PLC EUR670 mil 4.375% callable nts due 02/07/2025 Bond XS1992087996 BBG00NZHWKS3 B
EG Global Finance PLC EUR300 mil 3.625% nts due 02/07/2024 Bond XS1992918661 BBG00P2FHBL2 B
Explorer II A.S. EUR300 mil 3.375% bnds due 02/24/2025 Bond NO0010874548 BBG00RLS8C37 CCC+
Franklin Uk Bidco Ltd. EUR8.4 mil fltg rate Term B2 Loan bank ln due 12/09/2024 Loan -- BBG00JRY17M3 B
Franklin Uk Bidco Ltd. EUR96.6 mil fltg rate Term B3 Loan bank ln due 12/09/2024 Loan -- -- B
Franklin Uk Bidco Ltd. EUR250 mil fltg rate Term B1 loan bank ln due 12/09/2024 Loan -- BBG00JB0T3Y0 B
Garrett LX I S.A.R.L EUR350 mil 5.125% nts due 10/15/2026 Bond XS1884811594 BBG00LZN8764 BB-
Garrett LX III S.A.R.L EUR375 mil fltg rate TL B bank ln due 09/27/2025 Loan US36641DAE04 -- BB-
Garrett Motion S.a r.l. EUR330 mil fltg rate TL A bank ln due 09/27/2023 Loan US36641DAC48 -- BB-
Gestamp Automocion S.A. EUR400 mil 3.25% nts due 04/30/2026 Bond XS1814065345 BBG00KP1FZS1 BB
Getty Images Inc. EUR450 mil fltg rate euro term bank ln due 02/19/2026 Loan US37427UAK60 BBG00N2FT3K3 B-/WatchNeg
Go Wireless Holdings Inc. US$300 mil fltg rate 1st lien term bank ln due 12/22/2024 Loan US38019UAB89 BBG00JF7F0R0 B/WatchNeg
Holley Purchaser Inc. US$400 mil fltg rate 1st lien term bank ln due 10/24/2025 Loan US43540KAB89 BBG00M5B1S44 B-
Hurtigruten Group AS EUR655 mil fltg rate Term loan Facility B bank ln due 02/09/2025 Loan -- -- CCC+
International Game Technology PLC EUR500 mil 3.50% nts due 07/15/2024 Bond XS1844997970 BBG00L7XFPC8 BB/WatchNeg
International Game Technology PLC EUR500 mil 2.375% nts due 04/15/2028 Bond XS2051904733 BBG00Q6WL5D6 BB/WatchNeg
International Game Technology PLC EUR500 mil nts due 01/15/2026 Bond XS2009038113 BBG00PF1WJL5 BB/WatchNeg
Kongsberg Actuation Systems B.V. EUR275 mil 5.00% nts due 07/15/2025 Bond XS1843461689 BBG00LDCHYX3 B/WatchNeg
Mohegan Tribal Gaming Authority US$910 mil fltg rate term B bank ln due 10/13/2023 Loan US608330AQ92 BBG00DVWW340 B-/WatchNeg
NEP Europe Finco B.V. EUR505.13 mil fltg rate 1st lien term bank ln due 10/20/2025 Loan US62908HAE53 BBG00M37DPC9 B/WatchNeg
Parfums Holding Company Inc. US$565 mil fltg rate 1st lien term bank ln due 06/30/2024 Loan US69946PAB22 BBG00GXXZ3K8 B
Parfums Holding Company Inc. US$220 mil fltg rate 2nd lien term bank ln due 06/30/2025 Loan US69946PAE60 BBG00GXXZ756 B
Promontoria Holding 264 B.V. EUR400 mil 6.75% nts due 08/15/2023 Bond XS1860222543 BBG00LL10JX9 B
Promontoria Holding 264 B.V. EUR260 mil fltg rate nts due 08/15/2023 Bond XS1860216909 BBG00LL0W1Y4 B
PUG LLC EUR452.37 mil fltg rate term B bank ln due 02/12/2027 Loan US74530DAE58 -- B/WatchNeg
Samsonite Finco S.à r.l. EUR350 mil 3.50% sr nts due 05/15/2026 Bond XS1811792792 BBG00KNL84Q8 BB+/WatchNeg
Scientific Games International Inc. EUR325 mil 3.375% nts due 02/15/2026 Bond XS1766775545 BBG00JX88GQ2 B/WatchNeg
Scientific Games International Inc. EUR250 mil nts due 02/07/2026 Bond XS1766775891 BBG00JX88YK9 B/WatchNeg
Screenvision LLC US$175 mil fltg rate term B bank ln due 07/02/2025 Loan -- BBG00L42XKK1 B/WatchNeg
Tenneco Inc. EUR300 mil fltg rate nts due 04/15/2024 Bond XS1587913663 BBG00G91TJQ1 B+
Tenneco Inc. US$1.7 bil fltg rate term B bank ln due 10/01/2025 Loan US88037HAG92 BBG00KK7NNY4 B+
Tenneco Inc. EUR350 mil 5.00% sr nts due 07/15/2024 Bond XS1639490918 -- B+
Tenneco Inc. EUR415 mil 4.875% nts due 04/15/2022 Bond XS1587905727 BBG00G91M3D7 B+
The Chemours Company Co. EUR350 mil fltg rate Term B-2 bank ln due 04/03/2025 Loan US16384YAG26 BBG00KBB2J22 B+
The Chemours Company Co. EUR450 mil 4.00% nts due 05/15/2026 Bond XS1827600724 -- B+
Travelex Financing PLC EUR360 mil 8.00% callable nts due 05/15/2022 Bond XS1577964882 BBG00GK28204 CCC/WatchNeg
Vue International Bidco PLC EUR634 mil fltg rate Term B1 bank ln due 06/21/2026 Loan -- -- B-
Vue International Bidco PLC EUR114 mil fltg rate Delayed Draw Term B2 bank ln due 06/21/2026 Loan -- -- B-
WireCo WorldGroup Inc. US$460 mil fltg rate 1st lien bank ln due 09/30/2023 Loan US97654QAE70 BBG00KRX2F70 B/WatchNeg

Related Research

  • European ABS And RMBS: Assessing The Credit Effects Of COVID-19, March 30, 2020
  • Coronavirus Impact: Key Takeaways From Our Articles, March 27, 2020
  • COVID-19: The Steepening Cost To The Eurozone And U.K. Economies, March 26, 2020
  • European Corporate Securitizations: Assessing The Credit Effects Of COVID-19, March 26, 2020
  • Global Covered Bonds: Assessing The Credit Effects Of COVID-19, March 25, 2020
  • European CMBS: Assessing The Credit Effects Of COVID-19, March 24, 2020
  • European CLO Performance Index Report Q4 2019, March 24, 2020
  • COVID-19 Macroeconomic Update: The Global Recession Is Here And Now, March 17, 2020
  • COVID-19 Credit Update: The Sudden Economic Stop Will Bring Intense Credit Pressure, March 17, 2020
  • Coronavirus' Global Spread Poses More Serious Challenges For Airlines, March 12, 2020
  • COVID-19 Will Cause A Significant Decline In Global RevPAR, Cash Flow, For Rated Lodging Companies, March 11, 2020
  • Unrestrained Supply Swamps Oil Outlook: S&P Global Ratings Revises Oil & Gas Assumptions, March 9, 2020
  • Global Credit Conditions: COVID-19's Darkening Shadow, March 3, 2020
  • Global Auto Sales Will Downshift Again In 2020, Feb. 27, 2020
  • How Much Will Coronavirus Disrupt Europe's Travel, Lodging, And Gaming Sectors?, Feb. 13, 2020
  • European Corporate Credit Outlook 2020: In The Balance, Jan. 24, 2020
  • The European Speculative-Grade Corporate Default Rate Is Expected To Reach 2.3% By September 2020, Dec. 6, 2019
  • What's Driving Recent Rating Pressure On Certain European CLO 2.0s? March 22, 2018

This report does not constitute a rating action.

Primary Credit Analyst:Emanuele Tamburrano, London (44) 20-7176-3825;
emanuele.tamburrano@spglobal.com
Secondary Contacts:Marta Stojanova, London + 44 20 7176 0476;
marta.stojanova@spglobal.com
Shane Ryan, London + 44 20 7176 3461;
shane.ryan@spglobal.com

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