HCP pulls $380m loan as US investors push back

Chinese packaging company pulls $380 million leveraged loan after US institutional investors demand higher yield.

HCP pulls $380m loan as US investors push back

Chinese packaging company HCP, held by private equity firm Texas Pacific Group TPG, has pulled its $380 million covenant-lite loan that targeted US institutional investors, signalling a pushback on pricing of high-yield loans sold by Asian companies.

According to a source familiar with the deal, the combination of rising geopolitical risk and a flight to safety meant that investors were demanding higher yields, which HCP was unwilling to pay.

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