Europe's junk market sees another loan pulled as Iqony axes deal. Banks withdrew a €550 million ($616 million) loan refinancing for European energy infrastructure company Iqony after failing to secure investor interest amid wider market turmoil. Goldman Sachs Group Inc. and Banco Santander SA led the syndication, which was pulled from the market.
It marks the second European leveraged finance deal pulled in a week, following the collapse of a loan for Partners Group Holding AG's purchase of Aroma-Zone. Weak risk appetite has hurt Europe's junk debt market this autumn, with spreads hitting their widest levels since 2009. Investors fret about artificial intelligence disruption, high interest rates, and soaring energy costs.
Demand may have been further hampered by Asterion Industrial Partners, Iqony's less well-known sponsor. Despite being a refinancing, the proposed loan was a new deal for investors meant to refinance debt from a club of banks. The existing debt will remain in place.
The banks launched the refinancing last month with investor commitments due on Oct. 23. Asterion, a Spanish infrastructure investor, bought Iqony in 2023. Spokespeople for Asterion and Iqony did not immediately respond to requests for comment.
Representatives of Goldman Sachs and Santander declined to comment.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing