A euro-denominated leveraged loan issued in support of a leveraged buyout by a private equity firm with a 5-7 years’ maturity paid a 3.89% yield on April 7 (slightly up from 3.87% one week before but well down from 5.0% one year ago) and a 0.96% year-to-date total return (from 5.88% in the whole 2016). These are the figures that emerge reading the Ver Capital Leveraged Loan Index, an index that Ver Capital sgr has specifically built for BeBeez and that will be updated weekly.
The Ver Capital Leveraged Loan Index has 45 member loans (all senior secured performing loans with a B+ avarage rating) well diversified among a series of sectors as showed in the information memorandum.
The whole Lbo Index portfolio recorded a -0.08% total return in the week. The best performer loan on a weekly total return basis was the one relating to Defence Electronics (Hensoldt) (-0.20%), the defence electronic business spin-off from Airbus bought out by Kkr last February, with Airbus still owning a 25.1% stake.
The wrost weekly performance was instead the one relating to Infinitas Learning (-1.45%), an education publishing company controlled by Compass Partners since February 2016 with Bridgepoint being a minority shareholder. Bridgepoint remained with a minority stake in Infinitas after having sold to Compass a 2 billion euros portfolio including Infinitas, the German eyeglass maker Rodenstock, the Polish logistic operator CTL Logistics and the Italian perfumeries retail chain Limoni. The deal was financed by HarbourVest Partners (see here Bloomberg).