Primary Supply Surges, Government Yields Hit New Highs as Economic Indicators Indicate Further Rate Hikes

All three factors that Federal Open Market Committee Chair Warsh cited last week as key drivers for the rise in Treasury yields were in full effect this week. Strong flash PMI readings in the United States and Europe, a flood of debt issuance and higher oil prices driven by the harsh words at the U.N. General Assembly combined to give the market ample reason to lift government yields to heights not seen in decades.

SoftBank Group typified the global surge in primary issuance and was a bellwether for the high-yield market this week. Early Monday morning, price whispers for its BB rated, triple-tranched $10 billion unsecured bond and a dual tranche €1 billion unsecured bond were in the 9% to 10% range for the U.S.-denominated tranches and the high 7% to mid-8% range for the Euro tranches. The new notes have a loan-to-value ratio that is highly dependent on the value attributed to its two largest holdings, Arm Holdings and OpenAI, according to Octus analysis.

The company plans to use proceeds from the issuance to fund a $10 billion commitment to OpenAI while also remaining committed to purchasing ABB Robotics and DigitalBridge later this year. SoftBank’s asset value is heavily reliant on Arm and OpenAI, with each company’s valuation potentially impacting the company’s loan-to-value metrics. The proposed notes are priced at a premium compared with SoftBank’s existing dollar and euro curves, with the new paper having limited covenant protections.

On Thursday, following word the company would settle the state lawsuits that had held up its merger with Warner Bros. Discovery, Paramount Skydance Corp. overtook corporate headlines when it launched a $7.5 billion term loan B and announced its intention to raise another $44 billion of secured debt to complete the acquisition. In between the two deals was a surge in issuance across the globe and flash readings of economic indicators that added fresh fuel to inflation fears.

In the U.S., AMC Entertainment returned to the capital markets with a comprehensive refinancing, pricing $2 billion first lien senior secured notes due 2031 alongside an $850 million first lien term loan. Gray Media added to the refinancing wave with a $500 million term loan due 2030 to repay debt.

Warburg Pincus’ buyout of specialty pharmacy Pantherx Rare reached the finish line as borrower Puma Buyer LLC upsized its first lien TLB to $2.27 billion while trimming the concurrent second lien tranche to $370 million. Aerospace manufacturer PennAero, backed by Tinicum, marketed a $625 million TLB and a $100 million delayed-draw facility to reprice debt taken on for its TriMas Aerospace acquisition, while CD&R-backed distributor White Cap sought to amend and extend a $4.132 billion TLB to push its 2029 maturity out to 2033 amid elevated leverage.

Amid the corporate issuance, a two-year Treasury note auction on Sept. 22 drew a high of 4.787%, up from 4.315% during the prior auction on July 27. On Sept. 23, an auction of five-year notes sold at 5.033%, up from 4.393% during the prior Aug. 26 auction. The 30-year Treasury yield rose to 5.42% this week, matching a level last seen in 2007.
 

The five-year Treasury auction was the same day as flash PMI readings from S&P for the U.S., U.K., Europe and Japan. The readings indicate strong growth in the U.S., which were above expectations, as well as the Eurozone economies. The market believes these readings increase the likelihood of additional rate hikes. Meanwhile, PMI readings for the U.K. and Japan show a softening economic environment.

As evidence of resilience in the U.S. and the EU economies, U.S. sub-investment grade companies experienced a notable increase in revenue growth, reaching a three-year high of 6.3% year over year, while management EBITDA growth also hit a three-year high at 7.6%, according to Fundamentals by Octus.

In the EU, the oil price shock from the closure of the Strait of Hormuz significantly impacted sector performance, boosting energy sector revenue and EBITDA growth while straining consumer staples due to increased input costs. In the second quarter, EU sub-investment grade companies experienced a rebound in revenue growth, reaching a three-year high of 5.5%, slightly surpassing nominal GDP growth. However, smaller companies continued to face challenges, with declining revenue and elevated net leverage, while larger companies saw growth re-acceleration, according to Fundamentals by Octus.

Europe’s primary market was hot this week. EQT’s take-private of Intertek anchored headline risk launching a dual tranche £865 million equivalent bond and £3.565 billion term loan package to backstop a £10.7 billion buyout, while InPost brought Europe’s most aggressive covenant package in recent memory to market to fund its buyout by Advent, FedEx, A&R and PPF.

Sponsors kept pulling fresh paper into a receptive market elsewhere too: Plenergy tapped a euro-denominated TLB to refinance debt and fund a dividend for Tensile and Portobello, Bending Spoons layered on add-on loans to finance its Miro acquisition and Guala Closures priced a €1 billion refinancing of its 2028 and 2029 notes.
 

In a much anticipated bankruptcy, Brightline Florida, a private, high-speed intercity passenger rail system operating in central and south Florida, filed chapter 11 this week. Importantly, the debtor entities do not include the operating company – Brightline Trains Florida LLC – potentially avoiding the application of Section 1163 of the Bankruptcy Code, which requires the appointment of a trustee for a debtor that is a “railroad.” The company also says certain existing stakeholders including Assured Guaranty and an ad hoc group of mutual fund bondholders have entered into a restructuring support agreement.

Supporting stakeholders have committed to provide $490 million of new long-term capital to Brightline Trains Florida, consisting of $140 million of additional senior debt and $350 million of new junior debt, according to the press release. Assured Guaranty separately announced that certain Brightline Florida stakeholders agreed to provide the OpCo with $258 million of postpetition funding, with Assured providing up to $178 million of that DIP funding. Octus’ Brightline Florida coverage is HERE. Distressed coverage for this week can be found HERE.
 

• Michaels Cos. – Michaels Stores has experienced a significant financial turnaround, leading to speculation about a potential IPO. The company’s debt prices have rallied, and its participation in the Goldman Sachs Global Consumer and Retail Conference suggests it may be laying the groundwork for going public. Michaels benefited from the bankruptcy of competitors PartyCity and Joann, consolidating its market position and recovering earnings. Despite strong performance, investors caution that Michaels must demonstrate growth, such as opening new stores, to sustain momentum and credibility for an IPO. Octus’ coverage of Michaels is HERE.
   
• Cable One – Cable One, or CABO, and joint venture partner GTCR have lined up advisors as CABO weighs an out-of-court deal against a possible chapter 11 filing, with a $475 million to $495 million put obligation to GTCR coming due as early as Oct. 1. CABO is working with Alvarez & Marsal and Cravath, while GTCR has retained Kirkland & Ellis, Latham & Watkins and Evercore. JPMorgan, administrative agent on CABO’s first lien debt, is advised by Simpson Thacher, an ad hoc group of Mega Broadband co-op lenders is working with Milbank and Lazard, and some CABO unsecured noteholders have hired Akin Gump and Davis Polk. CABO reported $866.2 million of liquidity as of June 30. Octus’ coverage of CABO is HERE.
   
• Getty Images – The publicly traded stock-photo provider is preparing to file for chapter 11 as soon as the end of this month following a failed merger with Shutterstock and payment obligations tied to litigation. On Aug. 31, the company announced that it intended to use a 30-day grace period on interest payments due for its 9.75% notes due 2027 and 14% notes due 2028. Getty is working with Simpson Thacher and Guggenheim, term loan creditors have organized with Gibson Dunn and Houlihan Lokey, and unsecured noteholders are working with Akin Gump and Perella Weinberg. Octus’ coverage of Getty Images is HERE.
   

The U.S. primary market had a banger of a week this week. SoftBank Group launched its $11 billion dollar- and euro-denominated notes on Sept. 21, and by Sept. 22, Paramount Skydance Corp jumped into the pipeline with the largest leveraged buyout on record. Other acquisition financings this week included Bending Spoons’, which upsized a $1.25 billion term loan add-on, plus a €395 million euro tranche, to fund its acquisition of Miro. Peranel finalized its €2.8 billion-equivalent cross-border loan, including a $1.8 billion tranche priced at SOFR+400 bps and 97 OID, backing Platinum Equity’s buyout of a 50% stake in Nestle’s water unit. Amid a busy AI infrastructure financing pipeline, Digital Drive priced $1.085 billion of secured notes to fund a CoreWeave-tenanted Virginia data center. The Goldman Sachs-led offering was at least 2x covered at close and priced with an 8.875% coupon and 98.5 OID, equating to a yield of roughly 9.25%, Octus reported.
 

• SoftBank Group Corp. – The Japanese investment holding company priced $10 billion in three-tranche senior unsecured notes on Sept. 23, split into a $1 billion 3.5-year tranche at 8.625%, a $4.5 billion 5.5-year tranche at 9.25% and a $4.5 billion 7.5-year tranche at 9.75%, alongside €1 billion in four-year and six-year euro tranches priced at 7.125% and 8%, respectively. The notes carry BB+/BB+ ratings from S&P Global Ratings and Fitch Ratings and were led by joint global coordinators Citi, Goldman Sachs, JPMorgan and Morgan Stanley on the dollar tranches and JPMorgan, Deutsche Bank and Goldman Sachs on the euro tranches. Proceeds will fund the third $10 billion installment of SoftBank’s OpenAI follow-on investment due Oct. 1, alongside cancellation of the remaining undrawn bridge facility capacity earmarked for that payment. Octus’ coverage of SoftBank Group Corp. is HERE.
   
• AMC Entertainment – AMC Entertainment priced at SOFR+450 bps at a 98.5 OID on its $850 million first lien term loan B due 2031, part of a package that also includes $2 billion of first lien senior secured notes and a privately placed $1.12 billion second lien term loan to refinance existing debt. Octus provided primary analysis, covenant analysis and sustainability analysis of the debt sale. Octus’ complete coverage of AMC Entertainment is HERE.
   
• White Cap – CD&R-backed White Cap is marketing a $4.132 billion term loan B amend and extend this week, aiming to push its 2029 maturity out seven years. Deutsche Bank is running the deal at price talk of SOFR+325 bps to 350 bps and a 99.5 to 99.75 OID, with commitments due today. S&P pegs adjusted pro forma leverage at about 6.9x following White Cap’s Colony Hardware acquisition in February, though the ratings agency expects deleveraging to the mid-6x area by the end of fiscal 2026. Octus’ coverage of White Cap is HERE.

Private credit managers largely shrugged off last week’s 25-basis-point Federal Reserve rate increase, the first since 2023, which lifted the federal funds target range to 3.75%-4%. “I don’t think the recent rate increase by itself throws a meaningful wrench into the fourth quarter of 2026 or first quarter of 2027 M&A activity,” said Reed Van Gorden, managing director and head of origination at Deerpath Capital, a lower-middle-market-focused private credit firm, in this week’s Private Credit Review. Van Gorden cautioned that rate hikes still “make LBO math harder” for buyers relying on debt financing, even as healthcare services platforms drove a fresh wave of auction processes this week. Deal size and process momentum diverged sharply across the group, from a nine-figure auction with more than a dozen bidders to earlier-stage mandates just reaching the market.
 

• Apex Service Partners – The Alpine Investors-founded home services platform is sounding out investors for a roughly $2 billion debt package to refinance its private debt in the broadly syndicated market, with JPMorgan expected to lead the financing when it launches in the coming weeks. As of June 30, the largest holders of Apex’s debt included Ares Capital Corp., FS KKR and Morgan Stanley, according to Octus’ BDC Database, with instruments maturing in October 2029 and October 2030 carrying a SOFR+500 bps margin. Alpine remains the primary sponsor after a 2023 move into a $3.4 billion single-asset continuation vehicle anchored by Blackstone Strategic Partners, HarbourVest Partners, Lexington Partners and Pantheon, and Apollo agreed in May to acquire a minority stake that valued the company at $10 billion. Goldman Sachs and Evercore are advising Apex and Alpine, and William Blair and JPMorgan are advising Apollo. Octus’ coverage of Apex Service Partners is HERE.
   
• HMP Global – The medical events and continuing-education provider, which is backed by Susquehanna Growth Equity, or SGE, is running a sale process with Solomon Partners. The company generates roughly $75 million of EBITDA. HMP, a long-term SGE hold dating to 2008, expanded its portfolio in 2025 through the acquisitions of Masterclasses in Dermatology, Psychiatry Redefined and Music City SCALE. Its subsidiary HMP Omnimedia carries a first lien term loan priced at SOFR+525 bps maturing in July 2032, a portion of which is held by Sixth Street Lending Partners and Sixth Street Specialty Lending Inc., according to Octus’ BDC Database. Octus’ coverage of HMP Global is HERE.
   
• Alcanza Clinical Research – Martis Capital-backed Alcanza is expected to be valued at more than $800 million in its ongoing Jefferies-led sale process, implying a roughly 16x EBITDA multiple. Vistria Group and Ares Management are among the bidders that advanced to the second round after Alcanza collected bids from 15 prospective buyers in the first round, including TowerBrook Capital Partners, Leonard Green & Partners and Revelstoke Capital Partners. The Florida-based clinical research site operator is marketing itself on approximately $50 million in forward-looking EBITDA. Octus’ coverage of Alcanza Clinical Research is HERE.
   

Americas Covenants had a busy week of primary reviews spanning refinancings, repricings and leveraged buyout financings across a range of sectors. The largest transactions reviewed included a jumbo amend-and-extend from a construction-supply distributor, a dual bond-and-loan refinancing from a movie theater operator and a leveraged buyout financing package for a specialty pharmacy platform. Elsewhere, Octus reviewed August for aggressive term tracking in the U.S. bond market, with several closely watched provisions absent from the small number of deals reviewed. Coverage rounded out with primary reviews spanning aerospace, auto auctions, power generation and dividend recapitalizations.
 

• Saber Power Services – Octus’ Covenants legal analysts completed an analysis of Saber Power Services’ draft credit agreement, assigning a Loan Document Score of 4.33, the least protective for lenders among the three deals reviewed this week. Octus’ coverage of Saber Power Services is HERE.
   
• White Cap Supply Holdings – Americas Covenants reviewed the CD&R-backed distributor’s $4.132 billion term loan B refinancing this week as part of its amend-and-extend to push the 2029 maturity out to 2033. The loan documents had a score of 4.28, which ranks it among the least protective of documents for lenders. Octus’ coverage of White Cap is HERE.
   
• AMC Entertainment Holdings – Americas Covenants reviewed the movie theater chain’s $2 billion first lien senior secured notes due 2031, assigning a bond score of 2.00, a “strong” rating for lenders, alongside its companion $850 million first lien term loan due 2031. Octus’ coverage of AMC Entertainment is HERE.
   
• PantherX (Puma Buyer LLC) – Americas Covenants reviewed the specialty pharmacy’s $2.17 billion first lien term loan B due 2033, backing Warburg Pincus’ leveraged buyout of the company. Octus’ coverage of PantherX is HERE.

The CLO market saw notable shifts this week. Nuveen’s head of structured credit, Himani Trivedi, announced her retirement effective mid-2027, and Goldman Sachs entered discussions to acquire CLO manager Palmer Square. Global new issuance reached $2.4 billion for the week, split between $1.5 billion in the U.S. and €621 million in Europe, led by CQS’ €608.3 million Grosvenor Place CLO 12, the second-largest European CLO since the financial crisis. Triple-A spreads ranged from SOFR+117 bps to SOFR+128 bps in the U.S. and from Euribor+126 bps to Euribor+129 bps in Europe, while U.S. triple-B spreads spanned SOFR+210 bps to SOFR+440 bps. Despite a sharp widening in the broader bond market, investors described European CLO secondary trading as orderly, even as some tranche buyers voiced concern that technical demand for floating-rate product continues to outweigh company fundamentals in setting the market’s direction.
 

• CLO market – CLO investors piled into floating-rate paper after the Federal Reserve’s 25-basis-point rate hike last week, driving $7.4 billion of investment-grade and $1.5 billion of non-investment-grade U.S. CLO TRACE volume, the largest weekly flow since late March. Triple-B and double-B tranches led secondary spread tightening, at 14 bps and 5 bps respectively, while single-B loans gained 0.16% in price against a 1.23% drop for triple-C paper. Octus’ coverage of the CLO market is HERE.
   
• BTG Pactual – BTG Pactual Global Alternatives has mandated Jefferies to arrange its debut CLO, BTG Pactual CLO 2026-1, targeting a $400 million portfolio with a weighted average spread of 298 bps. The firm is aiming to price in October or November and this week incorporated a warehouse for its first European CLO in Ireland, continuing a buildout that began with the hire of U.S. CLO portfolio manager Vincent Ingato. Octus’ coverage of BTG Pactual is HERE.
   
• International Finance Corp. – The International Finance Corp., or IFC, has initiated a groundbreaking deal in Malaysia by taking on the first-loss credit risk for up to $110 million of GXBank loans aimed at micro, small and medium-sized enterprises. This transaction, part of IFC’s Catalytic First Loss Guarantee program, provides $4.95 million of protection on the first-loss tranche, with GXBank retaining 10% of the risk. The deal is designed to support women-owned businesses and self-employed borrowers and marks the first guarantee received by a digital bank in the region. IFC is expanding its credit risk transfer structures in emerging markets, where regulatory frameworks for such transactions are still developing. Octus’ coverage of IFC is HERE.
   

Brightline Florida filed for chapter 11 bankruptcy in New Jersey on Thursday night, excluding its operating company Brightline Trains Florida LLC and leaving in place the opco’s $2.219 billion of municipal bond debt. Meanwhile, investment-grade municipal bonds traded at their highest yield levels this week since the global financial crisis amid Treasury market volatility tied to stronger-than-expected purchasing managers index data and hawkish Fed rhetoric. Puerto Rico’s long-running utility restructuring also advanced on the appellate front, with a federal appeals court affirming a key bond trustee claim classification. Elsewhere, senior living and healthcare credits continued to show liquidity strain, with covenant breaches tied to construction delays and cash flow shortfalls.
 

• Brightline Florida – The passenger rail operator filed for chapter 11 protection in New Jersey just before the expiration of a mandatory tender date extension, structuring the filing to exclude its operating company, Brightline Trains Florida LLC, from the case in an effort to avoid the Bankruptcy Code’s special railroad provisions. The operating company’s $2.219 billion of bond debt is set to remain in place, alongside $985 million of Brightline Florida Holdings LLC bonds and $1.211 billion of AAF Operations Holdings LLC bonds, while stakeholders including bond insurer Assured Guaranty have agreed to provide $258 million of postpetition funding. Octus’ coverage of Brightline Florida is HERE.
   
• San Juan, Puerto Rico – San Juan’s $121.1 million general obligation bond sale, which drew more than $2 billion in orders and priced at an all-in cost near 4.99%, is emerging as a template for other Puerto Rico municipalities eyeing direct market access. AAFAF says no municipality has yet sought formal approval for a transaction, though the fiscal agency said it remains open to reactivating the dormant Municipal Finance Agency if demand builds. Octus’ coverage of San Juan is HERE.
   
• Puerto Rico Electric Power Authority – The U.S. Court of Appeals for the First Circuit affirmed a Title III court ruling classifying bond trustee U.S. Bank’s roughly $8.5 billion proof of claim as a subordinated Class 64 claim under Puerto Rico’s confirmed plan of adjustment, keeping the claim in line for no distribution. The ruling came as PROMESA oversight board Executive Director Robert Mujica pressed for procurement and budget reform legislation, while former PREPA Executive Director Mary Carmen Zapata testified that the utility’s termination of a 10-year, $5.9 billion power purchase agreement with Power Expectations stemmed from the consortium’s failure to post a required performance bond. Octus’ coverage of Puerto Rico is HERE.
   

European special situations coverage this week centered on the credit implications of the AI financing boom, with Softbank’s bond offering underscoring how concentrated the sector’s exposure has become. Investors also focused on InPost’s precedent-setting covenant package, the first to include an anti-cooperation provision in European high yield, alongside developments in the Aston Martin litigation and complications facing Cerba Healthcare’s conciliation process. Away from the thematic coverage, several stressed borrowers reported fresh earnings pressure or sought amendments to their capital structures. This week’s reporting highlighted maturity talks, earnings deterioration and sponsor liquidity moves across three separate credits.
 

• Stark Group – A group of revolving credit facility lenders to the CVC-owned, Denmark-headquartered building materials group heard pitches from legal advisors ahead of debt talks, selecting Linklaters, as CVC offers roughly €250 million of equity to support an amend-and-extend deal on the company’s €1.345 billion term loan B due May 2028. Stark is in talks with its biggest lender, Apollo, to negotiate the terms of the amend-and-extend. Octus’ coverage of Stark is HERE.
   
• Inetum SA – The French IT services provider’s earnings decline accelerated in the second quarter, with EBITDA falling 28% year over year. Inetum is owed €239 million under a vendor loan from its former software division, Nexpublica, which it sold to sponsor Bain Capital, and repayment of that loan would deleverage the company by about 1.5x once triggered by a change-of-control put tied to a planned Nexpublica sale. Octus’ coverage of Inetum is HERE.
   
• Landal – The Netherlands-based holiday park operator’s EBITDA plunged 73.9% year over year in the first half after a value-added tax hike in its core Dutch market hit demand; the decline is expected to continue through the seasonally key third and fourth quarters. Sponsor KKR is exploring ways to realize liquidity from the group’s extensive real estate portfolio to fund future growth. Octus’ coverage of Landal is HERE.
   

European primary markets kicked into a higher gear this week as strong technicals drew a wave of jumbo bond and loan issuance from some of the market’s largest sponsors and issuers. Documentation concerns were unusually prominent among investor worries, chief among them an aggressive anti-cooperation provision embedded in one of the week’s marquee bond offerings. The backdrop remained challenging, with Brent crude hovering near $105 a barrel and growing expectations that the U.S. Federal Reserve will continue raising rates to curb inflation. Against that mix of strong demand and documentation pushback, several of the week’s largest deals were repriced, delayed or revised before pricing.
 

• Intertek Group plc – The testing, inspection and certification company’s roughly £3.565 billion-equivalent cross-border loan and bond package backing EQT’s roughly £10.7 billion leveraged buyout priced tight of talk, with final terms of Euribor+275 bps to 300 bps and no original issue discount on the euro term loan B tranche and SOFR+250 bps with 99.75 OID on the dollar tranche. Intertek revised documentation in response to investor pushback over a 36-month portability provision. Octus’ coverage of Intertek is HERE.
   
• DOC Pharma – TPG-backed Italian generics maker DOC Pharma repriced its €490 million floating-rate notes due 2032 at Euribor+312.5 bps, inside initial price talk of Euribor+325 to 337.5 bps. The spread prior to repricing was Euribor+362.5 bps coupon. Octus views fair value at the tight end of that range, citing an improved credit trajectory: pro forma net leverage has fallen to 5.8x, adjusted EBITDA is up about 25% year over year and Moody’s Ratings has moved its B3 outlook to positive. The refinancing leaves the company’s €150 million super senior RCF fully undrawn. Octus’ coverage of DOC Pharma is HERE.
   
• Guala Closures – Investors are split on Guala Closures’ new seven-year €500 million senior secured floating-rate notes, with several pointing to fair value around Euribor+425 bps, the wide end of initial talk. The B2/B/B rated Italian bottle-cap maker is marketing the deal on 4.5x leverage, but multiple investors pegged real leverage closer to 6x to 7x given a persistent gap between reported and adjusted EBITDA. Concerns also centered on declining demand for glass bottles as drinkers shift toward cans and alternative packaging. Octus’ coverage of Guala Closures is HERE.
   

This week’s Deal Origination Pipeline highlighted a mix of large-cap sale processes and mid-market financings across Europe, led by a possible dividend recapitalization for Dutch defense radar maker Robin Radar should sale valuations of 30 to 40 times EBITDA disappoint, and Oaktree’s exploration of a minority stake sale in a multibillion-euro U.K. data center portfolio. Elsewhere, Greenpeak Partners prepared to market its German specialty laboratories business Academia Holding, Alantra appointed ING to sell Spanish red fruit producer Surexport, and sole direct lender Arcmont provided refinancing and bolt-on debt for Dutch real estate software provider Zig, rounding out a busy week of large-cap and Benelux mid-market activity.
 

• Switch Datacenters BV – Ares Management is in exclusive talks to acquire two data center assets from Switch Datacenters in the Netherlands, with the assets valued between €300 million and €500 million. The sale includes AMS4, a stabilized brownfield site in Diemen, and AMS6, a greenfield site under development near Schiphol-Rijk. The sale process, which began in May, attracted interest from several real estate and infrastructure funds, although a tenancy contract with Telegram has complicated proceedings. Construction for AMS6 is scheduled to start next year, with its initial phase expected to be operational by 2028. Octus’ coverage of Switch Datacenters is HERE.
   
• Rodericks Dental Partners Ltd. – CapVest is considering refinancing options for Rodericks Dental Partners, a U.K.-based dental services provider, without external advisors. The company generates an EBITDA of approximately £50 million to £60 million, with existing debt of about £360 million and a margin in the 5% range. CapVest aims to maintain a similar margin for the refinancing but may face a premium due to high leverage and sector challenges. Riviera Topco Ltd., the holding company for Rodericks, reported adjusted EBITDA of £49.8 million and revenue of £277.6 million for the year ended March 31. Octus’ coverage of Rodericks Dental Partners is HERE.
   
• Vitabiotics Ltd. – Bain Capital received commitments for a $550 million, five-year syndicated loan from eight mandated lead arrangers and bookrunners, including BNP Paribas, HSBC, ING and Standard Chartered Bank, to partly finance its agreed acquisition of the U.K. supplements company, with total acquisition consideration reported at $850 million to $900 million. Syndication is expected to launch in early October and close by the end of the year. Octus’ coverage of Vitabiotics is HERE.
   

European high-yield primary activity this week produced two of the most aggressive covenant packages Octus has scored since it began tracking bond terms in the fourth quarter of 2025. The headline development was the appearance of an anti-cooperation provision in a European high-yield bond for the first time, a feature that would disenfranchise noteholders that enter into cooperation agreements from voting or directing the trustee. Both marquee deals also carried unprecedented multitoggle features that generated day-one covenant capacities far above recent market averages. The reception from investors was mixed, with early signs of pushback on the most aggressive terms.
 

• H1’26 European High-Yield Bonds – Nonguarantor debt capacity remains a live risk for European high-yield investors, Octus’ legal analysts found, with dedicated nonguarantor restricted subsidiary debt baskets appearing in 38% of first-half 2026 deals, up from 33% in 2025. CVC’s €160 million loan to Lipton Teas and Infusions through a nonguarantor subsidiary earlier this year illustrated how that flexibility can be exploited. Cumulative caps on structurally senior debt rose to 44% of first-half 2026 deals, up from 38% in 2025, though the market moved more aggressively in the first quarter before partially correcting in the second. Octus’ coverage of European high-yield covenants trends is HERE.
   
• InPost – The Polish parcel delivery group, is offering up €3.065 billion to support its take-private by a consortium led by Advent, including FedEx, A&R Investments and PPF Group. Investors are generally positive about the company’s business model and the pricing guidance for the loans and bonds but express concerns over aggressive documentation, particularly an anti-cooperation provision, which many see as a potential dealbreaker. InPost’s strong track record in Poland, driven by high EBITDA margins and significant volume growth, is praised, with its automated parcel machines being a key attraction due to their convenience and low maintenance costs. Despite concerns about cash flow and competition from Allegro, investors remain optimistic about InPost’s future growth and market penetration. Octus’ coverage of InPost is HERE.
   
• Intertek Group plc – The company’s senior secured notes due 2033 backing EQT’s leveraged buyout and equivalent to roughly £865 million scored 4.28 on Octus’ covenant scale, the second-highest on record, driven by the same multitoggle structure found in InPost’s bonds, including an unprecedented “anything to anything” toggle spanning debt, restricted payments, investments and liens. Octus’ coverage of Intertek is HERE.
   

This week’s APAC special situations coverage centered on Australia’s private credit sector and the regulatory fallout from the Bathla Group collapse. Octus’ commentary highlighted that Australia’s wholesale investor threshold under the Corporations Act 2001, unchanged since it was set, has let a rapidly growing share of ordinary Australians qualify as wholesale clients through unadjusted net-asset and income tests, stripping them of retail disclosure protections even though only Parliament, not the regulator, can amend the thresholds. The debate sharpened following Bathla Group’s collapse with debts near 3.4 billion Australian dollars (about $2.4 billion), intensifying scrutiny of private credit exposure through superannuation, opaque valuations and thin governance structures, even as Australia’s Reserve Bank has characterized nonbank lending as a modest share of the broader financial system. Elsewhere in the region, borrower-level activity centered on refinancings and acquisition financings spanning outsourcing, coal mining and education.
 

• GM3 – The Australian coking coal miner, 51% owned by Indonesia’s Widjaja family controlled Golden Energy and Resources, is working with ratings agencies toward a planned dollar bond targeted to launch as soon as mid-October, with the company seeking a B+ issuer rating. Proceeds would refinance roughly $600 million of debt due 2029 under a private credit acquisition loan that pays roughly 800 to 850 bps over SOFR, or approximately 12% to 13%. Octus’ coverage of GM3 is HERE.
   
• XCL Education – A $515 million five-year loan backing KKR’s acquisition of a controlling stake in the Singapore-based school operator closed syndication last month, reaching full allocation and oversubscription after signing on Aug. 18. The borrower of the facility is Xpedition Holdings III Pte. Ltd., the acquisition vehicle for XCL Education. Octus’ coverage of XCL Education is HERE.
   
• VXI Global Solutions – Bain Capital’s Los Angeles-headquartered business process outsourcing asset has hired Houlihan Lokey’s Singapore and U.S. teams as financial advisor as generative AI adoption erodes demand for its voice-based call center services. Creditors on VXI’s originally $690 million term debt have retained PJT Partners and Latham & Watkins. The first lien term loan is quoted in the 60s to 70s after S&P Global Ratings cut the rating to CCC in May, citing 2025 revenue that fell 0.5% year over year to $755.3 million and adjusted leverage that climbed to 10.9x. Octus’ coverage of VXI Global Solutions is HERE.
   

Emerging markets credit saw significant restructuring activity across multiple jurisdictions this week, as a Brazilian bankruptcy court took an active role in Braskem Idesa’s chapter 11 proceedings, and bondholders of Turkish energy company Zorlu Enerji hired financial advisors in advance of talks with the company. Meanwhile, distressed sovereign credits including Venezuela, Lebanon and Senegal also saw notable developments tied to diplomatic engagement and IMF program progress.
 

• Braskem SA / Braskem Idesa – The São Paulo Second Bankruptcy and Insolvency Court barred Braskem SA from making new extraordinary payments, funds transfers, asset contributions or guarantees tied to Mexican subsidiary Braskem Idesa’s chapter 11 restructuring, with presiding Judge Tainá Maria Leonardo de Oliveira ordering the six debtors in Braskem’s Brazilian restructuring to immediately halt DIP disbursements and exit financing commitments until further court order. The decision came as Judge Christopher Lopez confirmed the Braskem Idesa debtors’ prepackaged plan at a Sept. 24 hearing. Octus’ coverage of Braskem SA is HERE. Octus’ coverage of Braskem Idesa is HERE.
   
• Sappi – Financial and legal advisors are circling Sappi as the South Africa-listed pulp and paper producer prepares to refinance its €400 million 3.625% notes due 2028 against a backdrop of persistent cash burn. Third-quarter adjusted EBITDA fell to $53 million from $80 million a year earlier as depressed pricing and cost inflation weighed on results, with net leverage at 6.6x versus a 4x covenant threshold under a suspended test. CEO Stephen Robert Binnie has flagged a fresh bond issuance to refinance the notes in early 2027, a plan complicated by a proposed €1.42 billion paper joint venture with UPM-Kymmene that EU regulators could veto on competition grounds. Octus’ coverage of Sappi is HERE.
   
• Zorlu Enerji – Restructuring advisors pitched Zorlu Enerji’s ad hoc bondholder group ahead of talks with the Turkish clean energy company, with a decision on the financial advisor expected soon and Cleary Gottlieb advising creditors on the legal side. Zoren’s $1.1 billion 11% 2030 eurobond has stabilized near 61 cents after a 15-point drop tied to the company’s hire of Houlihan Lokey to review financing and strategic options. Octus’ coverage of Zoren is HERE.