Global Macro Conditions Weigh on Outlook; Deal Flow Continues

Surging above 50,000 on May 14, gains in the Dow Jones Industrial Average retreated below the watermark today as the Treasury market absorbed inflation data.

The 10-year Treasury reached a high of 4.59%, according to data from the Federal Reserve. Average high-yield bond spreads sit at 276 bps, tighter than last week, according to ICE BofA data. The LSTA Leveraged Loan Index was indicated at 97.56, up slightly from last week. Euro Stoxx 600 slipped to 606 to close the week, down from the trading week’s high of 616 on May 14. The Nikkei 225 also lost ground, falling to 61,242 on May 15’s close from a year-to-date high just above 63,500 mid week.

In the U.S., real wages declined in April, with the Bureau of Labor Statistics, or BLS, reporting a 0.5% month-over-month drop in inflation-adjusted average hourly earnings for all employees. This results from a 0.2% nominal wage gain outpaced by a 0.6% rise in the Consumer Price Index for all urban consumers, or CPI-U, which the BLS also released this week. Producer prices accelerated sharply in April, with the final demand PPI rising 1.4%, which is the largest increase since March 2022, when PPI had risen 1.7%, the BLS reported on May 13.

On an annual basis, real average hourly earnings fell 0.3% from April 2025 to April 2026, with real average weekly earnings also slipping 0.2% over the same period. The CPI-U reading of 0.6% in April is a deceleration from March’s 0.9% gain, though the all-items index climbed 3.8% year over year – up from 3.3% for the 12 months ending March. Energy was the primary driver, accounting for more than 40% of the monthly increase.

Sector Insights zeroed on the first-quarter 2026 earnings this week, with reports on the resilient hotel, refining and software sectors.
 

• High-yield issuers in the software space showed improving retention metrics among companies with consumption-based pricing models, regulatory entrenchment, or mission-critical software despite fears of AI-driven deterioration.
   
• U.S. refiners expressed optimism for their sector because of global supply-chain disruptions.
   
• Results from hotel operators indicate a K-shaped economy with growth in luxury and upper-scale hotels but cautious guidance from economy and midscale providers.
   

For the week ended May 8, Fundamentals by Octus covered the calendar first-quarter 2026 earnings of 440 high-yield and leveraged loan issuers based in the U.S. For these companies, the median, year-over-year revenue growth was 5.3%, and the median year-over-year EBITDA growth was 5.7%.

Euro area GDP grew 0.1% quarter-over-quarter in first-quarter 2026, down from 0.3% in fourth-quarter 2025. The EU as a whole grew slightly faster at 0.2% quarter over quarter. Employment in both the euro area and the EU rose 0.1% in the first quarter, decelerating from 0.2% growth in fourth-quarter 2025. Both output and labor market expansion slowed in tandem, though growth remained positive across the bloc.

For the week ended May 8, Fundamentals by Octus covered the calendar first-quarter earnings of 106 high-yield and leveraged loan issuers based in Europe. For the 106 companies that have so far reported over the past week, the median, year-over-year revenue growth was 4.1%, while the median year-over-year EBITDA growth was 5.8%.

China’s annual consumer price index, or CPI, rose 1.2% in April from 1% in March, which was above expectations of a 0.8% increase, according to Trading Economics, citing the National Bureau of Statistics of China. Transport costs picked up significantly at 4.6% because of higher energy prices and supply chain disruptions stemming from the Iran war. China’s annual PPI rose 2.8% in April and beat forecasts of 1.5%. The reading marked the second consecutive gain and the fastest increase in PPI since July 2022, according to Trading Economics.
 

 

High-yield and unrated companies in the AI Infrastructure sector have raised more than $107 billion of committed and funded debt since the second half of 2024, according to an Octus Sector Insights report published this week. Octus believes the seven largest non-investment-grade AI infrastructure issuers may need to raise over $400 billion in additional asset-level and corporate-level financing over the next four years to meet their publicly disclosed capacity targets.

The typical financing stack for companies in the sector includes both asset-based and corporate-level debt. Novel sector-specific asset-based structures include graphics processing unit-backed deferred-draw term loans and single-asset data center special purpose vehicle, or SPV, bonds, with corporate issuance dominated by convertible bonds. Our deep dive on the AI infrastructure sector, its major players and how these financing structures work can be found HERE.
 

• US LBM – US LBM is working with Kirkland & Ellis as legal advisor amid a sustained performance decline. The building materials distributor is owned by Bain Capital and Platinum Equity. In a statement emailed to Octus, the company said “US LBM has not engaged any advisors to evaluate capital structure options. The Company currently maintains considerable financial flexibility to navigate the current market environment.” Creditors of US LBM are organizing with Paul Weiss as legal advisor to prepare for potential negotiations with the company about options for its capital structure, and the advisor has circulated a cooperation agreement. The company reported that adjusted EBITDA in the first quarter dropped 82.1% year over year to $14 million while revenue was down almost 14% to $1.377 billion. Octus’ coverage of US LBM is HERE.
   
• West Technology Group – The Apollo-backed technology-enabled communications services provider, formerly known as Intrado, is working with AlixPartners ahead of an August revolving debt maturity after skipping a $19 million interest payment on its 2027 second-priority notes. The company is grappling with leverage exceeding 10x, and lenders have engaged Gibson Dunn as legal counsel as the company’s first lien term loan B3 trades at distressed levels around 18 cents on the dollar. Octus’ coverage of West Technology Group is HERE.
   
• Vivid Seats – The Nasdaq-listed secondary ticketing platform cleansed restructuring materials after negotiations with an ad hoc lender group advised by Gibson Dunn and Centerview broke down without a deal. The lender group’s proposal resembled a change-of-control transaction, while Vivid Seats is pursuing a liability management exercise that would include up to $50 million of new-money, first-out debt alongside second-out take-back paper. The company reported a 23.3% year-over-year decline in first-quarter 2026 revenue and has reportedly transferred collateral tied to its Vegas.com asset beyond the reach of existing creditors. Octus’ coverage of Vivid Seats is HERE.
   

Robust investor appetite continued to drive primary market activity in the Americas leveraged finance market this week, with several loan and high-yield bond deals upsized or accelerated as demand absorbed new supply despite lingering macro uncertainty. Refinancing and repricing transactions dominated the pipeline, as issuers moved quickly to capitalize on tighter spreads and a receptive market window. Although appetite for higher-quality credits remained strong, market participants noted that more challenged borrowers still faced friction in launching transactions. “There’s a lot of cash out there looking for a way to be put to work that’s not tainted by rising oil prices, software disruption or weak consumer sentiment,” said Melanie Hanlon, head of credit research at Napier Park Global Capital.
 

• Modern Aviation – Apollo-backed Modern Aviation accelerated commitments on a $500 million term loan B to refinance the company’s existing direct term loan, with price talk coming at SOFR+325-350 bps and 99 OID. The deal was among the week’s higher-profile primary market executions, reflecting continued sponsor appetite for opportunistic refinancing in a window marked by strong investor demand and tightening spread conditions. Octus’ coverage of Modern Aviation is HERE.
   
• Alliant Holdings – Alliant Holdings more than doubled the size of its leveraged loan to $1.35 billion on the same day it launched, pricing at SOFR+250 bps and 99.875 OID to refinance the insurance broker’s existing 2027 notes. The upsizing underscored the depth of investor demand for well-known corporate issuers pursuing liability management in the current environment. Octus’ coverage of Alliant Holdings is HERE.
   
• Kennedy-Wilson – Kennedy-Wilson priced a $1.8 billion dual-tranche senior notes offering, consisting of $1.1 billion of 7% senior notes due 2031 and $700 million of 7.25% senior notes due 2033, with proceeds earmarked to refinance existing debt in connection with a pending merger. The issuance is tied to a merger agreement under which a consortium led by Chairman and CEO William McMorrow and Fairfax Financial Holdings Ltd. will acquire the company. Octus’ coverage of Kennedy Wilson is HERE.
   

Americas private credit markets are contending with widening spreads, cautious deal-making and a growing buyer-seller valuation disconnect. Credit spreads have widened 25 to 50 bps this year – stretching to around 75 bps wider for software deals – as the broader software selloff and redemption movements continue to weigh on auction activity. At the Milken Institute Global Conference, market participants acknowledged the difficult environment while flagging opportunity, particularly in special situation lending, refinancings and returning capital to sponsors. Continuation vehicles are emerging as a preferred liquidity tool for sponsors reluctant to sell into uncertainty, with ONCAP Management Partners’ move to develop a CV for Walter Surface Technologies the latest example of that trend.
 

• FMC Corp. – The publicly traded agricultural sciences company is exploring a potential sale process targeting a 2027 launch, while simultaneously evaluating refinancing options for its $500 million notes due in October. With 2026 adjusted EBITDA projected at $670 million to $730 million, FMC is pursuing asset sales and balance-sheet deleveraging to offset declining earnings – a dual-track posture that signals mounting pressure on the company’s capital structure ahead of any formal process. Octus’ coverage of FMC Corp. is HERE.
   
• CCS Medical – Morgan Stanley is advising Riva Ridge Capital-backed CCS Medical on a sale process that has cleared the first round, with initial bids submitted in late April pointing to a roughly $1 billion valuation at approximately 10x EBITDA. The chronic care and home medical supplies provider generates about $100 million in EBITDA, and the double-digit multiple reflects sustained investor appetite for healthcare services assets even as broader deal activity slows. Octus’ coverage of CCS Medical is HERE.
   
• Ultradent Products – Jefferies is advising the privately held South Jordan, Utah-based dental products manufacturer on a sale process that has advanced to the second round, with strategic buyers now in the mix alongside financial sponsors. The company, which markets approximately $50 million in EBITDA, is drawing strategic interest that could push valuations beyond what pure financial buyers would support – a dynamic worth watching as the process narrows. Octus’ coverage of Ultradent Products is HERE.
   

Aggressive covenant provisions tracked across U.S. high-yield bonds reviewed in April appeared less frequently than in March, with several protections vanishing from April deals entirely. Among the provisions absent from April deals: “pick your poison” debt baskets, “ratio not worse” investment baskets and leverage-based restricted payment or investment baskets subject to a secured leverage ratio test. The Americas Covenants team delivered primary reviews across a broad slate of leveraged loan issuers, and Octus hosted a timely webinar on minority lender strategy in liability management exercises, with Glenn Agre partners walking through key LME archetypes and evolving lender-on-lender dynamics.
 

• DirecTV – The digital television provider issued $1.4 billion in new 9.25% senior secured notes due 2032, with proceeds earmarked to fund a partial cash tender offer for up to $1.4 billion of its outstanding 5.875% secured notes due 2027. An Octus covenant analysis of the new notes’ preliminary offering memorandum found the company’s day-one general-purpose covenant capacities materially exceed trailing four-quarter market averages across key baskets. Octus’ coverage of DirecTV is HERE.
   
• AthenaHealth – The health technology company is among the week’s most significant primary loan transactions, with Octus completing a covenant review of a $4 billion term loan due 2032. The deal represents the largest single loan reviewed in this week’s primary slate by dollar amount, reflecting continued lender appetite for large-cap healthcare technology credits in the current market environment. Octus’ coverage of AthenaHealth is HERE.
   
• Minority lender dynamics – Octus hosted a webinar on May 14 featuring Glenn Agre managing partner Andrew K. Glenn and partner Agustina G. Berro on strategies for minority lenders navigating LMEs, moderated by Julian Bulaon, head of liability management for Americas Covenants at Octus. The discussion addressed three recurring LME archetypes: opportunistic, rescue financing and the ambiguous middle. The conversation examined how proximity to maturity affects minority lender leverage, aggressive exit consent tactics deployed against holdouts and key case law developments, including SDG, Wesco, Selecta and Optimum and the antitrust challenges to cooperation agreements those cases raise. Octus’ coverage of minority lender dynamics in LMEs is HERE.

 

Software names have bounced back after a first-quarter selloff tied to AI disruption. Bank of America research notes that software credits are trading at about 91.5 cents, according to the CLO Weekly Wrap. The CLO market absorbed new issuance this week of $4.1 billion in the U.S. and €1.2 billion in Europe. CLO managers are capitalizing on a tighter spread environment to push deals across the line.
 

• CLO Primary – Oak Hill’s OHA Credit Funding 26 placed its senior triple-A tranche at the market tight rate of 119 bps. Elmwood broke through the 500 bps threshold and placed the double-B tranche of Elmwood CLO 49 at just 495 bps over SOFR. Octus coverage of the CLO Primary market is HERE.
   
• CLO Equity – CLO equity trading in the secondary market saw a significant decline over the past five trading days, with total volume dropping by $334 million compared to the previous week. The largest U.S. equity bid wanted in competition item was a $40.22 million position from Nuveen’s TCI-Symphony CLO 2016-1, which did not trade despite being talked at an average price slightly above its net asset value ratio. In Europe, a €30.4 million equity position from CVC’s Cordatus Loan Fund VII was the only listing, also not trading despite a price well above its NAV ratio. Octus’ Portfolio Analytics Wrap can be found HERE.
   
• Muzinich – Muzinich has launched its first European CLO, named 1988 Asset Management Euro CLO 1, with a €414.7 million deal via JPMorgan. The deal features triple-A guidance in the high 120s over Euribor, with Muzinich aiming for a narrow new issuer premium. The pricing for Muzinich’s double-As to triple-Bs is slightly wider than current new issues from Sound Point and Neuberger Berman. Muzinich is part of a trend of U.S. managers expanding into Europe, with plans for further European deals already underway. Octus coverage of Muzinich is HERE.

Municipals

April’s consumer price index rose 0.6% on a seasonally adjusted basis, following a 0.9% gain in March, according to the U.S. Bureau of Labor Statistics. Over the trailing 12 months, the all-items index climbed 3.8% before seasonal adjustment, with energy up 3.8% in April after a 10.9% surge in March driven by the Iran war’s impact on prices. The inflation reading coincided with a busy primary calendar. The municipal bond market had $13.2 billion in supply this week, anchored by jumbo deals from New York, Atlanta and San Francisco, while several stressed and distressed credits navigated evolving covenant, litigation and legislative pressures.
 

• Illinois – At least seven legislative proposals with potential to materially reshape state pension obligations remain pending in the Illinois General Assembly as the May 31 session deadline approaches. The two most consequential measures are estimated to add more than $52 billion in combined obligations across the state’s three largest pension funds over the next 23 years, with one bill mandating approximately $14.85 billion in additional state pension payments from 2030 to 2049. While the measures may not advance this session, their continued traction signals that Illinois is likely to pursue aggressive remediation of its pension system’s chronic underfunding, with potential implications for Tier 2 federal compliance. Octus’ coverage of Illinois is HERE.
   
• Chicago Public Schools – CPS officials projected a $732.5 million budget deficit for fiscal year 2027, warning that staffing cuts will be necessary absent corrective action. The estimate assumes a $100 million tax increment financing surplus from the city and excludes any CPS reimbursement to the Municipal Employees Annuity and Benefit Fund for nonteacher employees and pensioners – a contribution CPS made at $175 million last year while drawing $552.4 million in TIF dollars from the city. District officials cited misaligned state and federal funding, surging maintenance and labor costs, a persistent debt burden and rising special education expenses as the primary deficit drivers. Octus’ coverage of Chicago Public Schools is HERE.
   
• American Dream Mall – The trustee for American Dream Mall’s payment in lieu of taxes, or PILOT, revenue bonds, U.S. Bank Trust Co., is seeking to intervene in a New Jersey Freeze Act proceeding initiated by mall owner and developer Ameream LLC, which is attempting to cap the mall’s 2026 tax valuation at its assessed 2025 level of $1.654 billion. The trustee argues that the Freeze Act does not apply to Ameream, which it characterizes as not a taxpayer, and does not extend to the PILOTs, which it maintains are not taxes. Oral argument on the intervention and Freeze Act requests is set for May 22. Octus’ coverage of American Dream Mall is HERE.
   

European special situations markets this week were defined by the persistent tension between sponsors seeking to extend the lives of overleveraged businesses and creditors pushing back with increasing sophistication. As noted across Octus coverage of EMEA credit markets, the amend-and-extend wave sweeping European leveraged finance has elevated stressed borrowers to 37% of transactions, up from 25% in 2025. Macroeconomic headwinds from the Iran conflict and AI-driven disruption accelerate the cycle. Creditor coordination is intensifying across several high-profile situations, with ad hoc groups forming and advisor mandates proliferating as lenders position themselves ahead of what many expect to be a second wave of restructurings for businesses that were only partially repaired in prior cycles.
 

• Grupo Antolin – The Spanish autoparts supplier is set to begin formal talks with creditors over its capital structure, with Houlihan Lokey serving as financial advisor and Kirkland & Ellis and Gomez Acebo y Pombo mandated as legal advisors. Bondholders have formed a steering committee comprising Benefit Street Partners, BlackRock, Five Arrows, HPS, Invesco and Spire, and Alvarez & Marsal and Milbank are serving as financial and legal advisors to that group, respectively. Bank lenders have lined up PJT Partners and A&O Shearman. Octus’ coverage of Grupo Antolin is HERE.
   
• Atos – A group of lenders to the French IT services firm is organizing a potential legal challenge over the company’s decision not to pay the prepayment premium on its first lien term loans in its latest refinancing. The lenders, advised by Pallas Partners and Almain Avocats, contend that Atos exploited unintended ambiguity between the term sheet and final documents, which they say clearly indicates that both loans and bonds should receive the prepayment premium. Absent a resolution, any future legal action would likely proceed in the French courts. Octus’ coverage of Atos is HERE.
   
• Oxea – Lenders to the German chemical producer’s euro- and dollar-denominated term loans due 2031 have lined up Gibson Dunn and Lazard for talks to rightsize its roughly €728 million-equivalent debt stack. Sponsor Strategic Value Partners is working with Kirkland & Ellis and PJT on the talks, which are being run out of the United States, where Oxea operates a production plant in Bay City, Texas. The plant recently experienced a fire, triggering force majeure on certain contracts and adding further headwinds to the already struggling chemicals producer. Octus’ coverage of Oxea is HERE.
   

European leveraged finance markets remain strong but increasingly bifurcated, as a surge of primary issuance runs alongside growing legal and structural friction at the margins. Daniel Rudnicki Schlumberger, JPMorgan’s head of EMEA leveraged finance, described the current environment as “the most technical market I’ve ever seen,” noting that corporate balance sheets are broadly healthy and investors are flush with cash, even as the gap between real-world conditions and market pricing grows more pronounced. High-yield funds recorded their fifth consecutive weekly inflow after seven weeks of outflows, sustaining demand for new paper even as macro headwinds from the Iran war push wholesale inflation sharply higher and U.K. gilt yields rise on fiscal concerns.
 

• Atos – The French IT infrastructure and digital services provider priced an upsized €1.25 billion refinancing comprising €950 million in senior secured notes due 2031 and €300 million in senior secured floating-rate notes, with both tranches pricing tight of initial price talk amid a divided investor base. As the deal cleared the primary market, lenders organized a potential legal challenge, arguing that Atos violated the spirit of its post-restructuring credit agreement by failing to pay a prepayment premium on its first lien term loans. Atos’ new SSNs were bid slightly below par in secondary trading following pricing. Octus’ coverage of Atos is HERE.
   
• TMD Friction – The brake pad producer priced an upsized €350 million senior secured notes due 2031 tight of initial price talk to fund a shareholder distribution, put cash on the balance sheet and pay transaction costs. The deal attracted demand despite investor reservations about the long-term trajectory of the business, given that the expected lifespan of brake pads in electric vehicles is materially shorter than in combustion-engine cars because of regenerative braking. Octus’ coverage of TMD Friction is HERE.
   
• Hanab – The multi-utility service provider priced an upsized €1.125 billion term loan B due 2033 inside initial price talk as it looked to refinance an existing €605 million TLB, add cash to the balance sheet and fund a shareholder distribution. The deal was upsized from €1.1 billion Octus’ coverage of Hanab is HERE.
   

European private credit markets are navigating a complex backdrop of geopolitical stress and structural refinancing pressure. Renewed escalation around the Strait of Hormuz is stoking inflation expectations, threatening to push small- and medium-sized businesses from profitable to cash flow negative at a critical moment for the region’s recovery. Lenders are simultaneously contending with the “SaaSpocalypse,” a building maturity wall and undeployed dry powder. A concentrated refinancing crunch between 2030 and 2032, peaking in 2031 when 117 direct lending deals and 165 BSL deals mature simultaneously, looms as the defining stress test for European private credit. Nevertheless, the deal origination pipeline continues to show significant buyout activity and refinancings in the market.
 

• HH Global – Sponsor Blackstone and majority owner Robert MacMillan are in talks over a $900 million dividend recapitalization for U.K.-based outsourced marketing business HH Global, which generates approximately $230 million in EBITDA. The proposed deal would lever the business at around 4x to 5x. Blackstone had previously explored a sale to ICG in 2024, but that transaction fell through, making this recap a notable pivot toward liquidity extraction rather than exit. Octus’ coverage of HH Global is HERE.
   
• Padoa – Arcmont Asset Management and Barings are offering a €175 million staple financing package for the sale of Five Arrows Growth Capital-backed French occupational health software firm Padoa, implying leverage of around 7x. The debt is priced at approximately 500 bps over the relevant benchmark, with nonbinding offers due May 7 and potential bidders including Cinven, Cobepa, EQT, PSG and TPG. Octus’ coverage of Padoa is HERE.
   
• Travelsoft – Incumbent lender Tikehau Capital is set to provide a €54 million unitranche add-on to the existing sponsors of Capza-backed French travel software company Travelsoft after a consortium comprising ICG, Marlin Equity Partners and TowerBrook fell apart on a minority stake acquisition following AI impact concerns. The add-on carries a margin of 650 bps over Euribor with 98 OID, bringing leverage to around 4.5x. Octus’ coverage of Travelsoft is HERE.
   

European credit markets are navigating a more turbulent environment in 2026, as the confluence of war in Iran and mounting concerns over AI-driven disruption has accelerated amend-and-extend activity while simultaneously pushing pricing conditions sharply higher. Stressed credits now account for 37% of A&E tranches across both high-yield and leveraged loan markets, up from 25% in 2025, as borrowers move earlier in the cycle to address near-term maturities, according to Covenants Weekly. Original issue discounts and margin fees have risen markedly as the second quarter gets underway, and investor scrutiny around liability management exercise protections has intensified, with leveraged loan borrowers including CeramTec and Dexko embedding LME blockers in their term loan B extensions. Against this backdrop, primary market issuance continues, though lenders are extracting more protective covenant terms as the price of execution.
 

• Synlab – The German medical diagnostics operator has priced €370 million of HoldCo senior PIK toggle notes due 2032, with proceeds earmarked to refinance its existing €400 million PIK notes due 2034. The new instrument is issued by Ephios Subco 1 Sarl, a holding company sitting deep in the subordination stack whose sole assets are shares in Synlab group entities, leaving noteholders entirely reliant on value being upstreamed from those entities to service the obligations. The notes are unguaranteed, with security limited to share pledges over immediate subsidiary Ephios Subco 2 Sarl. Octus’ coverage of Synlab is HERE.
   
• TMD Friction – The German automotive friction materials manufacturer has priced €350 million in senior secured notes due 2031, with proceeds earmarked for a dividend recapitalization and cash to the balance sheet. The transaction carries an Octus proprietary bond score of 2.86, reflecting a covenant package that Octus analysts assessed as a “Standard” rating. Octus’ coverage of TMD Friction is HERE.
   
• TMF Group – The professional services firm completed an amend-and-extend and refinancing of its term loan B, with €1.055 billion and $490 million in facilities extended to 2033. The transaction earned an Octus proprietary loan score of 3.59, among the higher scores in this week’s primary loan coverage, indicating a relatively more creditor-friendly set of terms. The deal reflects the broader trend of sponsors pushing through A&E transactions earlier in the cycle as pricing and documentation demands from lenders stiffen across the European leveraged loan market. Octus’ coverage of TMF Group is HERE.
   

APAC credit markets this week captured the full spectrum of the distressed cycle, from borrowers deep in restructuring negotiations to those riding credit upgrades toward opportunistic refinancing. Indonesian property developer Modernland Realty is navigating a complex debt-for-land swap proposal for its twice-restructured $269.7 million notes due April 2027, while India’s Vedanta Resources is moving in the opposite direction, leveraging improved ratings to pursue a sweeping refinancing of its $5 billion to $5.5 billion debt stack. Elsewhere, Chinese developer China Vanke confirmed coupon payments on its 2027 notes amid ongoing market scrutiny, and Energy Absolute launched a Reg S/144A green bond offering through its Hong Kong-incorporated vehicle, underscoring continued investor appetite for renewable credit in the region.
 

• Modernland Realty – The Honoris family-controlled Indonesian property developer has proposed a debt-for-land swap restructuring for its $269.7 million outstanding notes due April 2027, now twice restructured. Modernland filed draft terms via a Singapore court affidavit on April 29, triggering an automatic 30-day stay one day before a scheduled coupon payment; a hearing on a six-month moratorium is set for May 26. The company says it is close to agreement with key noteholders holding 44% of claims, though it needs 75% creditor approval by value to effect the scheme. Octus’ coverage of Modernland Realty is HERE.
   
• Vedanta Resources – The Anil Agarwal-controlled metals-to-mining company has initiated preliminary discussions with international banks to refinance its entire $5 billion to $5.5 billion debt stack, targeting an all-in interest cost of below 7% while also seeking prepayment flexibility. The push follows a May 5 rating upgrade from Moody’s, which lifted Vedanta Resources Ltd.’s corporate family rating to Ba3 from B1; Fitch had upgraded VRL to BB- from B+ in early April. Octus’ coverage of Vedanta Resources is HERE.
   
• Huachen Energy Co. Ltd. – The Chinese power producer has engaged Sodali & Co. as an identification agent to locate holders of its originally $500 million, 4.65% restructured senior secured notes due Dec. 29, following a disclosure request and an accompanying authorization letter dated May 12 sent to bondholders. Octus’ coverage of Huachen Energy is HERE.