A&O Shearman advises on six high yield deals in first week post-merger

The high yield team advised both issuers and initial purchasers on a broad mix of refinancings and new money transactions, including advising:

• The initial purchasers on Asda’s GBP1,750 million 8.125% senior secured notes due 2030
• The initial purchasers on Befimmo’s EUR350m 10.500% senior secured notes due 2029
• Boels on its EUR600m 5.750% senior secured notes due 2030
• The initial purchasers on Center Parcs’s GBP330m 7.875% senior secured notes due 2055
• Multiversity on its EUR600m E+4.250% senior secured floating rates due 2031
• Multiversity on its EUR500m 7.125% senior secured notes due 2031
• The initial purchasers on Verisure’s EUR525m 5.500% senior secured notes due 2030

Strong market technicals, driven by built-up demand and limited new money supply, pushed spreads down, with several deals pricing inside initial price talk.

“There is positive momentum in the high yield market,” said John Kicken, partner and head of high yield at A&O Shearman. “Aside from an uptick in high yield refinancings, we are seeing loan-to-bond refinancings, dividend recapitalizations and acquisition financings. The pipeline is building, including for M&A-driven new money supply. It is encouraging to see such a supportive backdrop develop.” 

Nick Clark, partner and global co-head of debt finance at A&O Shearman, added: “It is great to see our high yield team entrench their leading position as we combine to form A&O Shearman. The expanded team rests at the heart of our pan-European leveraged finance practice as we embark on our next period of sustained growth.”

Earlier this month, the Q1 2024 league tables of Bloomberg, Debtwire and LSEG (formerly Refinitiv) confirmed that the team retained its top positions across major high yield categories, including No. 1 Western Europe Issuer’s Legal Counsel and No. 2 Western Europe Banks’ Legal Counsel.