Assemblin Caverion Issues €1.53 Billion Floating-Rate Note in Record European High Yield Day
On September 16, Assemblin Caverion priced a €1.53 billion floating-rate note (FRN), marking the second-largest euro-denominated FRN ever issued by a European high yield borrower and the largest since Wind Tre's 2017 offering. The seven-year deal was upsized from its original plan of €750 million, reflecting strong investor demand for floating-rate debt in an environment where interest rates remain elevated. The transaction is part of a record-breaking day for European high yield issuance, with the total volume reaching €4.53 billion — the busiest day so far this year and sixth-busiest on record. Assemblin Caverion's deal also consolidated its existing higher-cost debt into one tranche, a common strategy among borrowers seeking to refinance at lower rates. Investor appetite for FRNs has grown as European collateralized loan obligations (CLOs) continue expanding, with new managers entering the market and issuance volumes remaining robust. A high yield bond fund manager noted increased allocations toward floating-rate debt in recent weeks due to favorable conditions.
Topics: European bond market floating-rate notes (FRN) high yield bonds