Iglo drops fixed for all-floating structure

摘要

Lglo ditched the fixed-rate bond tranche of its refinancing on Thursday, opting for an all-floating-rate structure, split into FRNs and cov-lite term loans. The European frozen food business set price talk on Wednesday at Euribor plus 450bp-475bp on a €350m 6NC1 FRN and at the 5.25% area on a €150m 6NC1.5 fixed tranche. On Thursday, however, lglo dropped the fixed piece for an upsized €500m FRN, which it priced at par at 450bp. The switch did not come as a shock to high-yield bond investors, however. "It's not at all surprising," said one. "It's quite common now to go out with a small fixed tranche to hedge yourself if there's not enough demand for the FRN."