The cinema operator Vue Entertainment Ltd. planned to sell bonds on a meeting with investors. The proceeds of this bond sale would be used to fund the company's leveraged buyout.

For the said acquisition, Vue Entertainment planned to sell notes in euros and pounds equivalent to GBP550 million or US$820 million. According to an anonymous source, Vue Entertainment would be using the proceeds to support last month's acquisition. This previous acquisition concerned Alberta Investment Management Corp. and Ontario Municipal Employees Retirement System.

Previously, the cost of credit in Europe dropped to its lowest level for more than two weeks. However, the Bank of England and the European Central Bank said on July 4 that they would hold interest rates low for a longer time than was previously expected by investors.

According to Legal & General Investment Management's head of high yield, Martin Reeves, "It's going to be quite a volatile environment for a while. In a volatile environment, just getting the deal done is the focus rather than securing the low yield. There will be good weeks and bad weeks for issuance."