CoreWeave Gets Caught in an AI Implosion; FOMC’s Decision Unleashes Steeper Curve

A perfect storm of macroeconomic announcements, growing skepticism on AI infrastructure spending and the implosion of Situational Awareness LP, a hedge fund with an AI-focused investment strategy, blew through the markets this week. The damage is acutely illustrated by the tale of the syndication of CoreWeave’s latest offer of a $2.6 billion delayed-draw term loan tied to a data center development that would be backed by lease payments from a basket of unrated and speculative grade enterprises.

Octus first broke the news on July 28 that CoreWeave’s offer was struggling in the primary market and the company would have to push spreads wider to fill its book. The DDTL arrived less than a week after Galaxy Digital Holdings priced a $3.5 billion senior secured bond for a data center that is 100% pre-leased to CoreWeave at 10%. CoreWeave ultimately pushed the spread to 550 bps and dropped the OID to a range of 96 to 97, with The Financial Times reporting that orders soared to $9 billion after the change, but as of press time today, the company has not publicly confirmed that it priced the loan.

Although the debt capital markets were already beginning to sour on the pace and volume of AI infrastructure financings, it was the implosion of Situational Awareness that sent tech stocks falling and CDS into the stratosphere across the sector.

The hedge fund’s strategy centered on concentrated, levered long positions in companies supplying the AI buildout: chips, memory, data centers and power. Disclosed holdings included CoreWeave, Nebius and IREN, among others. Its collapse sent CoreWeave’s stock down to a close of $60.82 on July 29, down from its 52-week high of $153.20. Ken Griffin’s Citadel bought the fund’s entire public equity book in one large trade, with roughly two-thirds of assets held long and short in public equities, according to press reports.

The dislocation was not limited to the U.S. markets. Korean and Japanese equities came under sustained pressure this week as investor confidence in artificial intelligence-linked capital spending cracked, triggering a broad selloff in chip stocks that hit Samsung Electronics and SK Hynix hardest. A sell-side sidecar was activated on the Kospi during a July 28 rout, and the session would close down 10.84% from the previous session at 6,023.66. The selling continued on July 29 and triggered the circuit breaker again during a session in which the Kospi fell below 5,300, marking the first time the measure had been activated on the benchmark for two straight days.

On the afternoon of July 29, New York time, the FOMC voted 9-3 to hold rates steady, with three regional Fed presidents preferring a 25-bps hike. The Treasury market reacted quickly to the announcement with the curve steepening. Yields on shorter-dated Treasurys fell as the yield on longer maturities rose: the yield on the 10-year bond climbed 7 bps to close at 4.68% on July 30, while the yield on the 30-year climbed 11 bps to close at 5.2%, its highest level since 2007. The Monetary Policy Committee of the Bank of England also held rates steady at 3.75% during its meeting this week, albeit with a 6-3 divide.
 

Liability management set the pace across the Americas this week, with sponsors and lenders retaining advisors well ahead of 2027 maturities and creditor groups organizing before terms reached the market. Two sizable chapter 11 cases, Alkegen and Republic National Distributing Co., landed in Texas courts within days of each other, each arriving on a compressed emergence timeline. Softer consumer and housing-linked demand kept pressure on building products and services credits, where first lien quotes slid into the 60s. Confirmation fights are shifting the battleground from balance-sheet negotiation toward the value of estate litigation claims.
 

• JetBlue – Legal and financial advisors have approached creditors of the low-cost carrier with capital structure proposals ahead of a Monday, Aug. 3, investor meeting, at which the airline could gauge appetite for additional liquidity. JetBlue posted a second-quarter net loss of $247 million as revenue rose 14.5% year over year to $2.7 billion, with quarterly EBITDA of $42 million leaving first-half EBITDA at negative $3 million against $8.5 billion of total debt and $1.66 billion of cash. CFO Ursula Hurley said quarter-end liquidity stood at 23% of trailing 12-month revenue, above the 17% to 20% target range, and that the first move if second-half liquidity is needed would be the $250 million accordion under its recent $500 million secured aircraft financing. The 9.875% TrueBlue loyalty senior secured notes due 2031 last traded at 87.5, down from 90 a month earlier. Octus’ coverage of JetBlue is HERE.
   
• Alkegen – The Irving, Texas-based specialty insulation and filtration materials manufacturer filed chapter 11 in the Northern District of Texas on July 26 to implement a restructuring support agreement with an ad hoc group of first lien lenders, first lien noteholders and second lien noteholders that would cut roughly $3.1 billion of balance-sheet debt and equitize a substantial portion of funded debt. The agreement carries support from holders of about 99% of first lien claims arising from the company’s 2024 liability management exercise, 80% of second lien noteholders, 95% of preferred equity and 99% of senior common equity. Judge Scott W. Everett granted interim approval of a $630 million DIP facility, unlocking $265 million of new money alongside a $265 million rollup of prepetition first lien debt. Octus’ coverage of Alkegen is HERE.
   
• Dynata – The survey and market research firm, which does business as New Insight Holdings, launched an offer on July 27 to uptier roughly $680 million of second-out loans due Oct. 15, 2028, into SOFR+500 bps junior first-out loans due Oct. 15, 2031 at 75 cents on the dollar, with an extra 5 cents for lenders tendering within 10 business days and an Aug. 17 expiry. The new junior first-out paper would sit behind about $80 million of existing senior first-out loans but ahead of the second-out, while the accompanying consent solicitation would strip substantially all affirmative and negative covenants, reporting and information rights and curtail expense reimbursement and remedy rights. Octus’ coverage of Dynata is HERE.
   

Capital rotated toward the digital infrastructure buildout in recent weeks, where data center operators, hyperscalers and neocloud companies have drawn billions of dollars of new-money issuance this year. However, increased skepticism of the AI infrastructure buildout contributed to CoreWeave’s challenges to sell a $2.6 billion DDTL. Meanwhile, amend-and-extend transactions continue with Proofpoint’s recent deal while demand has since concentrated in stronger credits, refinancings and sectors insulated from macro volatility.
 

• Proofpoint – The software company has extended a portion of its multibillion-dollar term loan by offering significant lender concessions, including tighter credit documentation. The amendments include protections for intellectual property and restrictions on privately negotiated open-market transactions, among other changes. The credit document now resembles that of a post-LME or distressed company, with an Octus rating improvement from 2.68 to 2.21 on a lender protection scale. Proofpoint’s $4.3 billion term loan is extended to August 2030, with plans for an IPO in the coming years to address the remaining debt. Octus’ coverage of Proofpoint is HERE.
   
• CoreWeave – CoreWeave widened the spread to 550 bps and OID on its $2.6 billion DDTL due 2031. The deal struggled to attract commitments since its launch on July 16. Initially offered at SOFR+425-450 bps and 99 OID, concerns about counterparties, which include unrated startups and non-investment-grade enterprises, have contributed to the challenges. This situation contrasts with CoreWeave’s successful $3.1 billion deal in May, as the debt market has become more cautious about the sector. Octus’ coverage of CoreWeave is HERE.
   
• PureStar – PureStar, a hospitality laundry services provider, is marketing a $975 million debt offering to refinance existing maturities. The deal, led by Citizens Bank, includes a $825 million seven-year first lien term loan B and a $150 million seven-year DDTL. The proceeds will be used to refinance an existing first lien term loan and potentially fund acquisitions. PureStar, backed by Cornell Capital, recently acquired Emerald Textiles, expanding its services to the healthcare industry. Octus’ coverage of PureStar is HERE.
   

Retreating appetite for software deals is opening opportunities in the maturing private credit secondary market as lenders look to trade out of large software credits and reposition portfolio exposure. Business development companies with retail investor exposure are adding fuel to that acceleration, grappling with elevated redemption requests driven by headline news of the software scare. Spreads have widened significantly to compensate for the risk and volatility, with average pricing for information technology credits jumping to SOFR+533.7 bps in the second quarter of 2026 from S+498 bps in the first quarter and S+491 bps in the fourth quarter of 2025, according to the Octus Pricing Tracker. The software and technology sector continues to experience dislocation and course correction.
 

• Triumph Group – The Warburg Pincus and Berkshire Partners-backed aerospace partsmaker is working with Goldman Sachs in the early stages of a potential sale of its gearing assets, a business that generates roughly $35 million in EBITDA and about $230 million in revenue. The company’s systems and support division reported $250.8 million in adjusted EBITDAP for the fiscal year ended March 31, 2025, up 25% year over year, with capabilities spanning landing gear-system design and aerospace gearbox offerings including engine accessory gearboxes and helicopter transmissions. Octus’ coverage of Triumph Group is HERE.
   
• Jensen Hughes – New Mountain Capital has agreed to buy the specialty engineering and consulting company from Gryphon Investors in a deal valuing the business at approximately $1.5 billion. Jensen Hughes generates approximately $100 million in EBITDA and provides engineering, consulting and technology services focused on fire protection, life safety, security, risk analysis and resilience. Octus’ coverage of Jensen Hughes is HERE.
   
• ArtesRx – Linden Capital Partners is holding exclusive talks to acquire the Flexpoint Ford-backed specialty pharmacy platform, with Antares Capital in discussions to lead the debt financing package supporting the acquisition. Houlihan Lokey is advising on the sale process, and the business generates roughly $60 million of EBITDA. ArtesRx owns and operates businesses serving complex patient populations, including behavioral health and long-term care communities. Octus’ coverage of ArtesRx is HERE.
   

Octus released its H1 2026 U.S. Loans Wrap and found that documentation terms loosened further through the first half of 2026 even as volume climbed, with U.S. broadly syndicated loan issuance reaching $395 billion against $336 billion a year earlier on the strength of repricings and, later, maturity extensions. Aggressive high-yield provisions surfaced more often in June than in May, and the high-water mark mechanic, which permanently resets the fixed component of an EBITDA-based grower basket at its peak level, cleared the U.S. market after months of absence.
 

• Expert Views – In the latest installment of Expert Views, attorneys at Herrick Feinstein looked at the recent Serta Simmons decision from Judge Christopher Lopez of the U.S. Bankruptcy Court for the Southern District of Texas and explained how courts may measure damages in future disputes over non-pro-rata liability management exercises and how excluded lenders may react to the ruling. Octus’ Expert Views is HERE.
   
• Cornerstone Building Brands – The building products manufacturer has limited ability to pursue a comprehensive out-of-court deal-away liability management exercise because of restrictions in its cash flow credit agreement, leaving a consensual path with existing creditors more likely now that a cooperation agreement has been signed by more than 90% of all creditors. Roughly $3.5 billion of debt matures in 2028 with a further $1.4 billion in 2029, and springing maturity provisions could pull $494 million of term loans due 2031 and $500 million of secured notes due 2029 forward to April 12, 2028. Octus’ coverage of Cornerstone Building Brands is HERE.
   
• Morton Salt – The salt producer, which files as SCIH Salt Holdings Inc., priced a dual-tranche offering comprising $1.1 billion of senior first lien notes due 2031 and $700 million of senior unsecured notes due 2032, both earmarked for refinancing and a dividend. Each tranche drew an Octus Bond Score of 3.67, a weak reading on a proprietary scale running from 1, the most protective for lenders, to 5, the least protective. Octus’ coverage of Morton Salt is HERE.
   

The CLO market saw a wave of primary issuance this week, with $5.8 billion of new issuance globally, $4.9 billion of which came from the U.S.

Allstate set a market tight of SOFR+120 bps for U.S. triple-A CLO spreads. Meanwhile the two European triple-A new issue deals priced their first-pay notes at Euribor+125 bps and Euribor+128 bps. People moves in the CLO industry continued, with JPMorgan making a strategic hire in Europe and Ardian poaching Carlyle’s head of liquid credit.
 

• Octagon Credit Investors – XA Investments (XAI) and Octagon Credit Investors have issued opposing statements ahead of a crucial shareholder vote regarding the replacement of Octagon as the sub-advisor for the XAI Floating Rate & Alternative Income Trust, or XFLT. XAI’s board decided to remove Octagon due to underperformance and is advocating for Rockford Tower Asset Management as the new sub-advisor. In response, Octagon acknowledges the need for change and proposes a management overhaul, including converting XFLT to a 10-year term trust, reducing management fees, and appointing itself as the primary advisor. Octus’ coverage of Octagon is HERE.
   
• Canaras Capital Management – Alphatur Inc. has filed an amended complaint in New York federal court against Canaras Capital Management, Saranac CLO Management and U.S. Bank Trust Co., alleging securities fraud related to its interests in three Saranac CLO funds. Alphatur claims it acquired Sibiu Portfolio Management’s interests in Saranac CLO income notes for $50 million, but Canaras and SCM misrepresented the allocation of these notes, leading to a breach of contract and fiduciary duty. Alphatur seeks damages for securities fraud, breach of contract and other claims, along with an equitable accounting and declaratory judgment to affirm its ownership of the notes. Octus’ coverage of Canaras is HERE.
   
• MUFG – Mitsubishi UFJ Asset Management launched a triple-A CLO fund in February to provide smaller Japanese regional banks with access to the CLO market, focusing on U.S. broadly syndicated loan CLOs. Japanese investors currently purchase about 18% of the U.S. BSL triple-A paper, with U.S. BSL issuance reaching $234.3 billion in 2026. The fund aims to help banks diversify their portfolios and benefit from floating-rate characteristics without needing extensive internal resources. Other Japanese banks, such as Norinchukin, are also creating CLO funds to meet the growing interest in triple-A CLO investments, allowing regional banks to outsource due diligence and access these assets efficiently. Octus’ coverage of Japanese, triple-A investors is HERE.

Municipal primary supply thinned to $8.4 billion this week from $13 billion the prior week because of the Federal Open Market Committee meeting, during which monetary policy officials held rates steady. School districts are closing gaps with state aid that has yet to materialize, transit deficits are being pushed deeper into the outyears and a California health system has moved from bond default and forbearance into an affiliation. Recovery outcomes are landing in appellate courtrooms and before rate regulators, where the classification of a bond trustee claim and the durability of a final rate order carry more weight for holders than any concession at the table.
 

• Brightline Florida – Octus undertook a survey of reported and potential restructuring engagements for Brightline Florida as it faces mandatory tender and interest-rate payment grace period expiration deadlines and wrestles with the Florida East Coast Railway in litigation over commuter access rights while, separately, defending a make-whole dispute in New York state court. The Octus survey shows where mandates have been filled and, importantly, where they will be expected to appear should the company ultimately file for bankruptcy. Octus’ coverage of Brightline is HERE.
   
• Puerto Rico Electric Power Authority – A panel of the U.S. Court of Appeals for the First Circuit heard oral argument on July 30 in bondholders’ appeal of Title III Judge Laura Taylor Swain’s July 2025 decision classifying bond trustee U.S. Bank’s $8.4 billion claim against the commonwealth as a Class 64 section 510(b) subordinated claim, a class entitled to no distribution under the confirmed plan of adjustment. Bondholders argued the claim arises not from the purchase or sale of a security but from alleged breaches of a statutory covenant not to limit or alter the utility’s rights to charge and collect rates sufficient to pay the bonds, while the PROMESA oversight board and the commonwealth claims reconciliation monitors countered that a covenant that induced the bond purchase is inherently tied to that purchase. Octus’ coverage of Puerto Rico Electric Power Authority is HERE.
   
• Chicago Board of Education – The board approved an amended fiscal year 2027 budget for Chicago Public Schools on July 30 that cancels planned layoffs of more than 1,500 teachers and classroom aides by relying on an additional $150 million in unrealized state funding. However, district officials warned that the plan would not be considered balanced as required by state law and would leave the district in immediate and long-term financial jeopardy. Officials said after the vote that the amended budget threatens the district’s ability to secure the short-term financing needed to cover early September payroll and could damage its credit rating and severely restrict future borrowing capacity for capital projects and operations. Octus’ coverage of the Chicago Board of Education is HERE.
   

EMEA released its debut LME Outcomes report this week and took a high-level view of how liability management evolved in the European market. It took until March 2024, and a triple hit of announcements inside 30 days, for European leveraged finance to treat aggressive value extraction as a live domestic threat rather than a U.S. import, despite earlier warnings. That shift marks a material break from the traditional “London Approach,” which leaned on cooperative creditor-led restructurings grounded in informal norms rather than legal enforcement. Aggressive non-pro-rata transactions remain rarer in Europe than in the United States, but use of documentary flexibility is on the rise, and litigation tail risk has emerged as the principal check on how aggressive sponsors and companies are willing to be.
 

• Virgin Media O2 – Attention this week shifted toward potential value leakage to shareholders after management pressed ahead with a £200 million shareholder dividend and the company’s unsecured bonds due 2030 dropped 10 points. Octus’ legal and credit analysts have unpicked the vendor financing notes and where they sit within the capital structure. Octus’ coverage of Virgin Media O2 is HERE.
   
• Worldline – The French payments processor’s €550 million 5.5% unsecured bonds due June 2030 dropped 2.5 points to 85.5 after a €37.5 million block of the company’s €1.125 billion RCF due July 2030 was put up for auction by JPMorgan on July 29. The block failed to trade, with bids coming in the 60s against a seller expectation of low 70s. Octus’ coverage of Worldline is HERE.
   
• Seqens – A €20 million block of the French pharmaceutical solution and specialty chemicals producer’s €130 million RCF due April 2028 is up for sale, while separately a €5 million piece of its €930 million term loan B due October 2028 was auctioned as part of €4 billion of bids wanted in competition. Seqens and its lenders are negotiating a debt restructuring that likely includes a debt-to-equity swap, S&P said in a July 21 report. Under a forbearance agreement signed June 24, lenders agreed to waive their right of debt acceleration and to defer interest due on the TLB and the RCF until Nov. 30, 2026. Octus’ coverage of Seqens is HERE.
   

Deal flow was stilted in European leveraged finance this week as new issuance continued to slow with the departure of investors on their summer holidays. Expectations are for the market to continue to slow throughout August as investors, lawyers and bankers head off for their summer holidays.
 

• Paysafe Ltd. – The global payments platform launched an amend-and-extend, or A&E, of its existing $814 million and €586 million term loan Bs, or TLBs, both due 2028, pushing maturities out by two years to July 2030. Headline terms of SOFR/Euribor plus 500 bps at a 95-96 OID. The digital payments processing provider is publicly listed and the loans are rated B2/B (Moody’s/S&P), with Fitch to be determined. Commitments are due Wednesday, Aug. 5. Octus’ coverage of Paysafe is HERE.
   
• Fedrigoni SpA – The Italian labels and premium packaging manufacturer priced €665 million of senior secured floating-rate notes, or FRNs, due 2033 at Euribor+375 bps at par, roughly in line with initial price talk of high-300s, with proceeds earmarked for refinancing. Buy-siders were split on the credit, flagging concerns over high leverage and outstanding PIK notes while praising renewed cost management efforts and were skeptical about anything below 400 bps for a B3/B- (Moody’s/S&P) issuer. Octus’ coverage of Fedrigoni is HERE.
   
• Iceland Foods – The U.K. frozen-food retailer priced €300 million of seven-year senior secured notes, or SSNs, at 6.625% at par and €300 million of seven-year senior secured FRNs at Euribor+362.5 bps at par, both tightened from IPT of 7% to low-7s for the SSNs and Euribor +400-425 bps for the FRNs. The €600 million refinancing package matures in 2033 and is rated B2/B/B+ (Moody’s/S&P/Fitch). Investors were hesitant to play the deal, though many defended the business against stern criticism, praising its staying power and resilience against sector headwinds. Octus’ coverage of Iceland Foods is HERE.
   

Ares anchored two of the week’s largest European buyout financings, in France and the Benelux, underscoring how a narrow group of managers now takes down entire unitranches at sizes once reserved for the syndicated market. Leverage stayed disciplined even as check sizes grew, with transactions clearing between 4x and 5.5x EBITDA. Where processes stalled, they stalled on valuation rather than financing, as sellers targeting double-digit multiples found bidders unwilling to follow. Technology and IT services assets dominated the pipeline, with Livingbridge alone running two U.K. exits.
 

• Batibig – Ares is leading a club of direct lenders, including Hayfin, providing a €520 million unitranche and a €150 million committed acquisition facility to support Charterhouse Capital Partners’ buyout of the French residential building maintenance and repair provider. The debt levers Batibig at 5.5x EBITDA of about €90 million to €100 million including recent bolt-ons, and carries a margin of 500 bps over the reference rate with OID of 98.5. Charterhouse pre-empted the process at a valuation of about 14x, bidding against CVC, ICG and family office Krefeld, and will invest alongside co-founders Charles and Justin Bignon, who continue to lead the business. Octus’ coverage of Batibig is HERE.
   
• Evernex – 3i pulled the sale of the French third-party IT maintenance and lifecycle services provider after bidders and the sell side failed to agree on valuation, with Access Industries and DigitalBridge in the second round against a target above €1 billion. Bank of America marketed the business off EBITDA of about €75 million, implying a multiple north of 13x. 3i acquired Evernex from Carlyle Group in October 2019 in a deal funded by €257 million of senior debt financing and has grown the company through a series of acquisitions since. Evernex supports enterprise data center infrastructure across more than 160 countries, serving over 5,600 clients. Octus’ coverage of Evernex is HERE.
   
• Lansweeper – Ares agreed to finance Bridgepoint’s acquisition of a majority stake in the Belgian IT asset management software provider with a unitranche facility, in a transaction valuing the company at about €800 million. Sell-side advisor William Blair marketed Lansweeper off EBITDA of about €30 million when the process launched earlier this year, putting the deal at roughly 27x. Bridgepoint is buying alongside existing minority investor Dovesco, Chief Executive Officer Dave Goossens and the wider management team, with Insight Partners and Imker Group exiting. Lansweeper sells asset intelligence software providing visibility across IT, industrial and connected devices. Octus’ coverage of Lansweeper is HERE.
   
• Elemis – PAI Partners has taken the lead in the auction for the British skincare brand and is in talks with direct lenders over a $250 million unitranche alongside a $50 million acquisition facility, pricing the debt at roughly 4.5x. Morgan Stanley is marketing Elemis off EBITDA of about $55 million, having drawn earlier interest from CVC, Cinven and a Chinese private equity bidder, though initial bids fell short of expectations. Sources have expected a low- to mid-teens multiple, implying an enterprise value below the $900 million L’Occitane Group paid in 2019 to acquire the business from L Catterton portfolio company Steiner Leisure. European personal care companies trade at an average of about 13.6x pro forma EBITDA, according to Fundamentals by Octus. Octus’ coverage of Elemis is HERE.

Covenant discipline held its shape in Europe this week even as the primary window narrowed ahead of the summer slowdown, with issuers pushing refinancings out to 2033. Pushback in high yield eased only marginally in the first half of 2026, falling to 9% from 10% in 2025 and well below the 19% recorded in 2024, and every deal that drew resistance saw it aimed at value leakage terms, with restricted payment buildup baskets taking the brunt, according to the H1 2026 High-Yield Pushback Tracker. Leveraged loans told a tougher story, with nine in 10 European buyouts and full refinancings conceding covenant ground and pushback on dividend-to-debt toggles jumping to 33% in the first half from 4% in 2025, according to the H1 2026 Leveraged Loans Pushback Tracker.

Disclosure itself has become a covenant question, as financings routed through newly incorporated restricted and unrestricted subsidiaries leave existing creditors to infer ranking and collateral from partial statements.
 

• Fedrigoni SpA – The Italian group issued €665 million of senior secured floating-rate notes due 2033, earmarking proceeds for the redemption of its existing senior secured floating-rate notes due January 2030, with terms that largely mirror the group’s senior secured notes due 2031. The notes scored 3.20 on a standard rating, though off-market features remain, most notably a broad scope for value leakage created by a nonstandard quarterly zero floor in the build-up basket that disregards any losses incurred in a given quarter and can lift capacity over time. A J.Crew blocker is present but limited to material intellectual property and further subject to a material adverse effect qualifier, so protection may prove narrow in practice. Day-1 capacities screen well below the four-quarter European average, although undisclosed amounts under the backdated contribution debt and consolidated net income, or CNI, builder baskets since October 2022 could increase capacity significantly. Octus’ coverage of Fedrigoni is HERE.
   
• Aston Martin – The British luxury sports car manufacturer announced a new £550 million debt financing from HPS Investment Partners at the end of last week, comprising a £450 million senior secured term loan and a £100 million delayed-draw term loan maturing in July 2031. Proceeds from the senior secured term loan repaid existing facilities including a £170 million super senior revolving credit facility, or RCF, and a £20 million Yew Tree facility. A July 24 clarificatory statement confirmed the debt is secured against assets within a newly incorporated subsidiary and revealed the involvement of two newly incorporated subsidiaries, one designated unrestricted, while leaving the specific collateral and corporate structure unresolved. Octus’ coverage of Aston Martin is HERE.
   
• Iceland Foods – The British frozen food retailer issued €600 million of senior secured fixed- and floating-rate notes due 2033, using proceeds to fully redeem its £255 million senior secured notes due 2027 and €250 million floating-rate notes due 2027. The 2033 notes are looser than the paper they replace but remain relatively conservative for the market, reflected in a score of 3.13 on a standard rating. Despite that rating, investors should note that liability management exercise, or LME, protections in the 2033 notes are fairly limited in scope or absent altogether. A ratio-based investments basket accessible immediately was also successfully introduced, a feature present in only a minority of deals in the first half of the year. Octus’ coverage of Iceland Foods is HERE.

Data center capital formation set the tone across APAC this week, as operators pushed beyond the regional commercial bank market that has funded the build-out to date. Bank appetite is still solid, but regional loan volume is down about 20% for the year, and the available deals are dominated by refinancings, amend-and-extends and low-cost local currency lends, leaving lenders competing hard for scarce new-money mandates. Private credit is stepping into the gaps, supplying replacement equity on development assets, holdco paper and early-stage capital for neocloud operators that struggle on compliance and risk-assessment screens. Away from the buildout, a legacy Chinese restructuring reached its settlement date, and issuers in Laos and India tested private and public demand at double-digit pricing.
 

• AirTrunk – The Blackstone-backed Australian data center operator is the subject of investor speculation over a U.S. dollar-denominated bond, with investment bank-led meetings canvassing potential structures including an unsecured corporate-level dollar issue, though no mandate has been awarded and banks are still gauging appetite. An AUD 500 million asset-backed securitization is already in the making, with Deutsche Bank appointed to lead, and the group’s Malaysia assets are floated as possible backing for a separate bond. Pricing for established borrowers remains a sweet spot, with AirTrunk’s latest AUD 4.3 billion loan for an Australian data center buildout clearing at an all-in in the low 200s over base rate behind seven lead banks. Octus’ coverage of AirTrunk is HERE.
   
• Tsinghua Unigroup Co. Ltd. – The trustee of the group’s $1.038 billion of outstanding restructured guaranteed bonds informed bondholders on July 30 that it will distribute the scheme settlement on the restructuring effective date, or RED, of July 30, according to separate notices for each of the three bond tranches. Under the restructuring, which has become effective, Unigroup will pay cash consideration of 92% of outstanding principal plus a 2% consent fee to settle all three tranches of guaranteed bonds issued by Tsinghua Unic Ltd. and guaranteed by Tsinghua Unigroup. Octus’ coverage of Tsinghua Unigroup is HERE.
   
• EDL-Generation Public Co. – The Laos-listed state-owned power producer is targeting a $300 million offering of five-year noncall-three amortizing senior unsecured notes with a 4.25-year weighted average life, following roadshow meetings this week. The renewable energy producer is targeting a yield of around 11% on the proposed Reg S/144A bonds, with JPMorgan as bookrunner. A main concern raised by bond investors during the roadshow was potential cash leakage, stemming from the company possibly prepaying an around $110 million government loan before the proposed dollar notes are repaid. Octus’ coverage of EDL-Generation is HERE.