Luke Millar

Victoria PLC on Feb. 24 priced bonds via global coordinators Credit Suisse (B&D) and HSBC and joint bookrunners ING and NatWest. The notes came tighter than guidance, and were upsized by €150 million. Proceeds will be used for general corporate purposes (this is €250 million to fund future M&A), and to finance a €250 million redemption of the company's €500 million of 5.25% secured notes due 2024.

A clear pattern has been established in the opening weeks of this year as secured bonds have priced tighter than leveraged loans in Europe. This dynamic has developed in the last year or so, and was typically applicable to only a small number of well-liked credits, but this year it has become ubiquitous, and the yield differential in some instances between bonds and loans has never been bigger.

The acceleration of COVID-19 to a global pandemic and collapsing oil prices have thrown the economy into turmoil and sent the leveraged loan issuer universe into distress, including some industries that looked relatively insulated from the disruption.