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 3.97% yield on March 10th (down from 4.03% one week before but well down from 5.1% one year ago) and a 1.39% 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 44 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 best performer loan on a weekly total return basis was the one relating to HotelBeds (+0.41%), the largest business globally sellling hotels rooms to wholesale customers such as travel agencies and tour operators which German tour operator TUI sold last April to Cinven’s funds and Canada Pension Plan Investment Board in a 1.165 billion euros deal.
The wrost weekly performance was instead the one relating to Allnex (-0.75%), a leading global producer of coating resins and additives for architectural, industrial, protective, automotive and special purpose coatings and inks, controlled by Advent International since 2013. All that after a 0.04% weekley total return performance of the whole portfolio.