Banks marketing a EUR 550 million (approximately USD 616 million) loan refinancing for European energy infrastructure and services company Iqony have withdrawn the deal after failing to attract sufficient investor interest amid broader market turbulence.
According to people familiar with the matter who declined to be named, Goldman Sachs Group (GS.US) and Banco Santander (SAN.US) led the loan, which has been pulled from syndication. This marks the second withdrawn transaction in Europe's leveraged finance market within the past week. Previously, lenders cancelled plans to sell a loan intended to finance Partners Group's acquisition of Aroma-Zone.
Weak risk appetite has dealt a heavy blow to Europe's junk bond market this autumn, with the spread between the highest-rated and lowest-rated debt reaching its widest level since 2009, as investors worry about the impact of AI disruption, elevated interest rates, and surging energy costs on the region's most heavily indebted corporate borrowers.
People familiar with the matter added that demand may also have been affected by the fact that Iqony's owner, Asterion Industrial Partners, is a lesser-known sponsor. They added that although this was a refinancing, the proposed loan for the Essen, Germany-based company represented a new transaction for investors, as it was intended to refinance debt from a bank club. The existing debt would remain unchanged.
The transaction was an opportunistic move, conducted by banks on a best-efforts basis, meaning it was not underwritten and did not utilise any balance sheet. However, market participants said it is rare for a BB-rated transaction to be withdrawn.
Banks launched the refinancing last month, with investor commitments originally due by October 23. Spanish infrastructure investor Asterion acquired Iqony in 2023.
Comments