July 22, 2014 / 8:26 AM / 4 years ago

Winoa Group will not proceed with high-yield bond deal

LONDON, July 22 (IFR) - The Winoa Group will not proceed with a planned high-yield bond deal after investors pushed back on the transaction’s structure, a banker close to the deal said on Tuesday.

Winoa had been targeting a EUR260m six-year non-call two senior secured deal to refinance debt put in place when the business was acquired by a KKR-led consortium earlier this year.

The group announced the deal on Tuesday July 15 and marketed the trade to investors through to Friday.

However, several investors said on Monday they were demanding structural changes to the deal including a lengthening of the non-call period to three years, while one investor said that the 10% cash call provision would be scrapped.

The banker said that the increasing number of covenant changes coupled with worse pricing as the market deteriorated lead the issuer to hold off.

Although official price talk was not set, one investor said leads were whispering the deal at a yield of 8.5% area on Monday afternoon. (Reporting by Robert Smith, Editing by Helene Durand, Julian Baker)

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