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Green bond issuance broke through the US$150bn mark in 2017, a 78% increase over
the total recorded in 2016, and there are hopes that it will double again this year.
But is it on track to reach the US$1trn mark targeted by Christina Figueres?
This timely Roundtable will bring together a panel of senior market participants to assess
the current state of the market, examine the challenges and opportunities and provide
an outlook for the rest of the year and beyond.
This free-to-attend event takes place in London on the morning of Tuesday May 22 2018.
If you would like to be notified as soon as registration is live, please email
paul.holliday@tr.com.
Upfront
OPINION INTERNATIONAL FINANCING REVIEW
TOP NEWS 04
EMERGING Bargain basement Bahrain sells US$1bn 7.5-year sukuk bond but was
MARKETS forced to revise its triple-tranche offering following pressure from investors. 04
BONDS Battered Tesla got hammered in the markets last week, as its stocks and bonds
plunged on negative news about how the cash-burning company will raise funds. 04
P&M Head hunting Following its profit warning the previous week Deutsche Bank
was under pressure to give news on its hunt for a replacement for John Cryan. 05
EQUITIES Market correction Sell-offs across global equities have dented investor
sentiment for IPOs out of Asia, forcing issuers to compromise on valuations. 06
Liable Arrangers are strengthening disclaimers in issue documentation after BNPP loses court case. 07
New release Music streaming outfit Spotify discloses numbers ahead of its landmark direct listing. 08
Cashbuilding Banks have lined up as much as €7.3bn-equivalent of debt for Akzo Nobel buyout. 09
Thaw Mannai gets Qatar back on track with first US dollar bond since spat. 12
PEOPLE & Pay gap Bonuses paid to men were 66% bigger than awards to women on 13
MARKETS average across the big corporate and investment banks in London last year.
Eyeing expansion Big banks may be ready to make a splash in M&A after a
long hiatus, which could see JPM and Goldman getting acquisitive from next year. 14
Top slot London maintained its position as the world’s leading financial centre,
though its lead over New York, Hong Kong and Singapore narrowed. 15
Back on the gravy train Wall Street bonuses jumped 17% to an average US$184,220 last year. 19
Gaining ground Green bonds are set to play catch-up in Asia, with two borrowers rushing to sign up. 21
Doubtful Singapore Exchange is questioning whether the restructuring of Noble Group can succeed. 23
BONDS Hanging fire Tough market forces Banca Carige to put Tier 2 plans on hold. 25
US high-grade Difficult conditions endure. 26 Getting ahead Euroclear beats the rush. 32
EMERGING Kept on hold STLC was forced to wait last week to revive a pulled trade. 45
MARKETS China Issuers rush to beat NDRC clock. 46 Deaf ear Court refuses to hear Dana appeal. 51
LOANS Toothless Bankers question how ECB can police lending guidelines. 55
US J&J diabetes unit bid prompts loans. 66 Europe Imagina LBO debt delayed. 71
EQUITIES Revamp Dominion Energy rethinks its strategy after tax ruling. 73
Muddled Overstock pulls share sale. 80 Ready Tech IPOs set for April launch. 81
BY ROBERT HOGG just US$1bn of 7.5-year sukuk, audience in the capital markets been very expensive – even for a
after accounts lasered in on the even though its bonds aren’t 12-year it would be very
BAHRAIN’s trade wilted under credit quality of a country that eligible for the indices. That’s expensive from a debt
pressure from investors last relies heavily on external because of the yields Bahrain sustainability angle,” said a
week as the sovereign was support. provides and the implicit banker at one of the leads.
forced to revise a potential “Bahrain’s fundamentals on a support the economy gets from Instead, Bahrain (B+/BB–)
triple-tranche bond offering by standalone basis remain among Saudi Arabia in particular. agreed only to issue the shorter-
ditching the conventional the worst of all EM sovereigns But with investors dated October 2025 sukuk. But
tranches for a single Islamic note globally,” said Richard Briggs, an increasingly turning their pricing on that deal drew gasps
issue, which then came at a emerging markets strategist at attention to credit fundamentals from bankers after it began
huge pick up over its CreditSights. and questioning the exact marketing in the 7% area
outstanding sukuk. “Without support [from its nature of that Saudi support, the compared with the high 5%/low
The sovereign had been Arab neighbours] Bahrain would wheel has turned for Bahrain. 6% quotes for its March 2025
hoping to mirror a US$3bn be highly likely to be facing a Since the turn of the year, sukuk, which were part of the
triple-tranche deal from last balance of payments crisis.” yields on the sovereign’s September offering.
September, which was also a 7HILEû"AHRAINSûlNANCESûHAVEû outstanding bonds have jumped “Clearly, we started at
mix of conventional and sukuk been a cause for concern for by some 70bp and, as a guidance levels that would be
tranches. some time (government debt-to- consequence, it was simply more inclusive than just the
But this time the sovereign GDP is forecast to peak at more priced out of issuing the sukuk investor base,” said a
was forced to abandon plans for than 100% by 2023 from 36% in conventional tranches. second lead banker. “We took
potential 12 and 30-year 2012) the sovereign has largely “There was a conventional the opportunity to leverage off
conventional tranches and issue MANAGEDûTOûlNDûAûCAPTIVEû trade available but it would have strong Islamic demand and get
BY DAVIDE SCIGLIUZZO batteries at the heart of it - were The rating agency cited both cover normal operations, an
safe to move. Tesla’s problems in getting expected US$2bn cash burn in
TESLA got battered in the markets Tesla stock shed 8.2% on production levels on the Model 3 2018 and some US$1.2bn in
last week, as its stocks and Tuesday after the NTSB news - up to speed, as well as the strain convertible debt maturities
bonds plunged on negative news slashing about US$4.2bn off its of the heavy cash burn and through next year.
that deepened questions about market valuation - and lost upcoming debt maturities. Not only does it need to raise
how the cash-burning company another 7.7%, and US$3.6bn more It said Tesla, which has yet to more than US$2bn for that, the
will raise the funding to keep market cap, on Wednesday. TURNûAûFULL
YEARûPROlTûNEEDEDûTOû agency said, but Tesla is also
going. More bad news came from raise more than US$2bn in the likely to need to muster up
Company founder Elon Musk Moody’s, which downloaded short term - no mean feat given even more in the second half of
has captivated the markets with Tesla’s corporate rating one the headwinds it faces - and put 2019.
promises of widespread electric notch to B3 on Tuesday, a move the credit on outlook negative. When it sold its junk bond
cars, solar houses and rockets that sent its lone outstanding One investor told IFR that last year, the company indicated
that land on Mars, but reality has junk bond plummeting as well. investors needed “equity-type THATûWOULDûBEûTHEûlRSTûOFû
been rather more prosaic. The bond, a US$1.8bn 5.3% 2025 return” to compensate for the several such deals as it moved
The National Transportation that priced last August, was already risks the credit entails. away from equity issuance
Safety Board tweeted on Tuesday at its lowest-ever level of 91 cents “Now that you have issued a to fund its ambitious growth
that it was investigating the fatal on the dollar before the downgrade; bond, you have to start to think plans.
crash of a Tesla vehicle in afterward it went as low as 86 cents. ABOUTûCASHmOWûDYNAMICSvûTHEû But still it has raised equity
California, news that sent the investor said. every year so far since going
company’s shares into a tailspin. JUNK IN THE TRUNK h4HESEûAREûSIGNIlCANTû public in 2010, and that might
It was unknown if Tesla’s 4HEûBONDû
ûINTENDEDûTOûlNANCEû challenges that Tesla faces.” again prove to be an attractive
autopilot feature was on at the ramped-up production of Tesla’s option to get through the
time, and there were reports Model 3 sedan - has never traded MONEY PIT turbulence ahead.
THATûlRElGHTERSûHADûTOûCONSULTû above par. Moody’s downgraded Moody’s said that, between cash The company could also try to
Tesla engineers to see if the that as well - to Caa1 - closer to and its revolver, Tesla’s current roll over its maturing
burning car - and the lithium-ion default territory. liquidity is “not adequate” to convertible bonds.
Akzo Nobel jumbo LBO 09 Issuers target Dim Sum savings 10 Mannai gets Qatar back on track 12
BY FIONA LAU, S ANURADHA “Investors still look at IPOs but table for its US$483m NYSE issuer could have priced it
they have become very picky. listing and sold shares at the higher but given how the recent
Sell-offs across global equities They would like to be totally sure mid-point of the US$10.50– Chinese listings in the US
have dented investor sentiment that they are not buying anything $12.50 range. OneSmart, traded, they chose to price it
for IPOs out of Asia, forcing overpriced. They will just pass meanwhile, priced its US$179m sensibly,” said a source close to
issuers to compromise on the transaction if they have any NYSE IPO at the bottom of the the deal.
valuations and leave some deals doubt,” said an ECM banker. US$11–$13 range.
undersubscribed. Such concerns meant Chinese Nevertheless, Bilibili shares “The issuer could have
Shares continued to fall in hotel chain operator GREENTREE dropped as much as 16.3% on priced it higher but
major markets last week after HOSPITALITY had to cut the size of their debut last Wednesday
given how the recent
the US opened a trade war its US IPO by half because of before ending the day 2.3%
against China and investors sold INSUFlCIENTûDEMANDû4HEû under the IPO price. OneSmart
Chinese listings in the
off leading US technology stocks, US$143m deal was also priced closed 1.8% below the issue US traded, they chose
such as Facebook, on fears of below the US$16–$18 indicative price. to price it sensibly”
increased regulation. As of last price range, at US$14 per share.
Wednesday, the S&P 500 index Despite these concessions, the SENSIBLE PRICING
had fallen 5.3% since March 16. stock still sank 7.1% on its debut That kind of weak performance iQiyi, often seen as the
4HEû-3#)û!SIA
0ACIlCûEX
*APANû last Tuesday. prompted IQIYI, Baidu’s video- #HINESEûEQUIVALENTûOFû.ETmIXûISû
Index fell 4.4% over the same Two other Chinese issuers, streaming service, to price its the biggest Chinese listing in the
period. video-streaming site BILIBILI and US$2.25bn US IPO at the mid- US since the US$25bn IPO of
Volatile market conditions tutoring company ONESMART point of the US$17–$19 price e-commerce giant Alibaba Group
have made investors more INTERNATIONAL EDUCATION, also range so as to secure a decent Holding in September 2014.
cautious and deliberate about priced their US IPOs aftermarket performance.
the new issues they choose to conservatively. “The book was double-digit SAME STORY
buy into, even from issuers in Despite a strong book, Bilibili oversubscribed and there was It was a similar story in India,
high-growth China and India. chose to leave something on the not much price sensitivity. The where retail and high-net-worth
BY JOHN DORAN, ELEANOR DUNCAN antitrust trial has only just redemption price outlined by success rate. It makes sense,
begun, making it likely the April the SMRs. because the ones included in the
AT&T made a buy-back and swap 22 date will be missed. There is slightly more than offer are long-tenor bonds, while
offer on Thursday for some of “I thought they would have US$12.7bn outstanding of those the debt left out of the offer
the US$22.5bn of bonds it sold announced something in the notes in all. carries relatively shorter tenors.”
LASTûYEARûTOûlNANCEûITSû lRSTûTWOûMONTHSûOFûTHEûYEARvû As an alternative, the CreditSights said on Thursday:
acquisition of Time Warner, a Mary Pollock, a senior analyst at company is offering some “We do not see any reason why
deal that the US government is CreditSights, told IFR before the investors a private exchange for investors would participate in
suing to stop. exchange offer was announced. new bonds at $1,000 par plus the cash tender. The takeout
With an April 22 deadline to “Usually, a tender or exchange US$2.50 cash. The new bonds do price is 100.25, below the SMR of
complete the merger or face takes about a month.” not contain special mandatory 101.00.”
mandatory redemption of the redemption language. Because AT&T is not soliciting
notes at a 101 cash price, AT&T SWAP OR CASH The bond exchange is open consents as part of the offers,
extended the offer for four But the telecoms giant, rated ONLYûTOûQUALIlEDûINSTITUTIONALû investors have the option to pass
tranches of the seven-part US Baa1/BBB+/A–, is not leaving buyers and non-US persons. The and still be taken out at 101 in
trade. investors – or itself – that much cash tender is open to all April, CreditSights said.
This is the third offer it has time. investors. On the other hand, the bond
made on the debt that was to The offer expires at the close Those investors not taking exchange gives investors the
back the US$85.4bn takeover of business on April 5, which part in either offer would then opportunity to remain exposed
after proposing an exchange on gave investors exactly one week be able to redeem their bonds at to AT&T, it said.
the euro and sterling- to determine what they wanted the SMR cash price. AT&T omitted three US dollar
denominated portions of the to do. “In effect, this offer will test tranches of the deal from the
OVERALLûBONDûlNANCINGûINû AT&T is offering to buy back investor appetite for TMT risk at offering. One of those tranches
February. its 5.3% 2058s, 5.15% 2050s, 4.9% current coupons,” one senior was called earlier this month
But it has become especially SûANDûmOATING
RATEûSûATû syndicate banker told IFR. using the make-whole price.
urgent to negotiate a solution US$1,000 plus US$2.50 per bond, “They are probably targeting And last month, AT&T
for the US dollar debt, as the or US$7.50 below the the bonds with the highest exchanged around €4bn of the
BY STEPHEN LACEY disciplined they are [at] Converting users from free to cost of storing user data with
managing the business,” said pay is integral to achieving a Alphabet, the parent of Google,
SPOTIFY TECHNOLOGY has Rohit Kulkarni, managing PROlT ISûALSOûSIGNIlCANT
announced it expects to grow director and head of research at Including €35m–€40m of Spotify projects a gross
revenue by as much as 30% and SharesPost. expenses associated with the margin this year of 23%-25%, up
narrow losses in 2018, as it gears “Spotify is consistently direct listing, Spotify expects from 13.6% ahead of the record
up for its direct listing this week increasing the conversion rate of operating losses this year to label deal in 2016 and 20.8% in
on the New York Stock free to paid subscribers.” narrow to €230m–€330m, from 2017. It is targeting longer-term
Exchange. The company estimates the €378m in 2017. gross margins of 30%-35%.
The music-streaming number of premium subscribers Gross margin, on which
company’s decision to publicly GREWûINûTHEûlRSTûQUARTERûBYû potential investors seem to be
disclose forward guidance is between 2m and 5m to 73m–
“The fact that they are focusing, represents only the
unusual for new US stock 76m - an unusually wide providing guidance cost of providing the streaming
listings, but Spotify is anything number, especially given that across a variety of service (such as music royalties)
but conventional. the quarter-end was just days metrics shows how but excludes other expenses
Rather than raising funds away. But it said its forecasts disciplined they are [at] (such as salaries, data storage,
through an IPO - it says it doesn’t were “subject to substantial R&D and much more).
managing the business”
need the money - the company is uncertainty”. “That gross margins will
cutting out some Wall Street By year-end, Spotify expects to approach 25% is a sign of the
middlemen and listing directly have 92m-96m paying A licensing deal inked last ONGOINGûBENElTûOFûTHEIRû
on the NYSE on April 3. subscribers - a heady 30%-35% YEARûWITHûlVEûMAJORûMUSICû relationship with the big music
“The fact that they are increase from the 71m at the labels is a big reason for labels,” said Kulkarni. “We still
providing guidance across a end of 2017 - and 198m-208m improved operating economics. don’t have an answer on when
variety of metrics shows how users overall. !NOTHERûAGREEMENTûTOûlXûTHEû THEYûWILLûBEûPROlTABLEv
BY KEN WANG, FIONA LAU “The IPO approval shows that AMIDûINTENSIlEDûCOMPETITIONû Foxconn Industrial Internet, a
the regulator welcomes with exchanges in the US and mainland unit of Taiwan’s
WUXI APPTEC is set to become overseas-delisted companies to Hong Kong. &OXCONNûISûTHEûlRSTûHIGH
PROlLEû
THEûlRSTû#HINESEûCOMPANYûINû list in the A-share market, if they As part of its efforts, the tech company to enjoy this
recent years to relist in the are of high quality and in line regulator plans to introduce privilege for a proposed A-share
A-share market through an IPO with the regulator’s strategy to Chinese Depositary Receipts as IPO. That deal, too, still awaits
after being delisted from an promote listings of new soon as this year to allow written approval.
overseas bourse, in a further economy industries,” said a QUALIlEDûOVERSEAS
INCORPORATEDû 7U8Iû!PP4ECûlLEDûITSû)0/û
push from regulators to attract banker on the transaction. entities to list in the domestic application last July after
listings from the “new Prior to WuXi AppTec, market. delisting from the NYSE in 2015.
economy”. software maker 360 Security Last June, the company spun
The biotechnology company Technology in February became “The valuation of the off and listed its open-access
cleared a China Securities THEûlRSTûFORMERûOVERSEAS
LISTEDû healthcare sector is biologics technology unit WuXi
Regulatory Commission hearing company to relist in the A-share Biologics in Hong Kong in a
at a high level in the
last Tuesday for a proposed market since mid-2016, but this HK$3.98bn (US$511m) IPO.
Shanghai IPO of about was via a reverse takeover.
A-share market, so WuXi Biologics’ share price has
Rmb5.74bn (US$914m). The Relisting through an IPO is WuXi AppTec will more than tripled since listing.
mOATûHOWEVERûSTILLûNEEDSû MOREûDIFlCULTûESPECIALLYûSINCEû have a huge upside
written CSRC approval. THEû#32#ûSIGNIlCANTLYûINCREASEDû potential after listing” HEALTHCARE RALLY
Chinese companies that were its IPO rejection rate at the end Investors are showing keen
formerly listed overseas have of last year. The regulators are also fast- interest in WuXi AppTec’s IPO in
faced regulatory uncertainty tracking large tech IPOs on the midst of a stock rally in the
over their ability to gain a TECH LISTINGS domestic stock exchanges, healthcare sector. The China
domestic listing since the CSRC 7U8Iû!PP4ECSûmOATûISûSEENûASû allowing them to bypass the Securities Index 300 Health Care
banned such relistings in May further evidence that the CSRC long queue of listing Index has risen nearly 30% in the
2016. is keen to attract tech listings applications. past 12 months.
REVENUE GROWTH
Spotify expects revenue to grow
unlikely sellers, while Sony
Music may be motivated to hold Jumbo deal for Akzo
by as much as 29.6% this year to for strategic reasons.
€5.3bn, based on a €4.9bn–
€5.3bn range and on top of the
No doubt, retail-jockeying
will distort fundamentals in the
Nobel unit LBO
38.6% growth last year. early days. The bigger question Loans Up to €7.3bn of financing expected before summer
What that will all mean when is whether the initial trading
Spotify debuts in the market is really matters. BY CLAIRE RUCKIN equivalent of senior leveraged
anyone’s guess. But in October, Spotify is not raising any loans, mostly denominated in
Kulkarni said the company money, and points to free Banks have lined up as much as 53ûDOLLARSûTOûMATCHûCASHmOWSû
could go public at a valuation CASHmOWûASûONEûREASONûFORûTHEû €7.3bn-equivalent of debt to but is still likely to include up to
exceeding US$21bn, or more direct listing. Another is to put back the buyout of AKZO NOBEL’s €1.5bn-€2bn of euro-
than US$100 per share. shareholders on an equal chemicals business, the latest denominated loans.
footing to sell, without any IPO jumbo cross-border leveraged That suggests the euro piece
discount. lNANCINGûTOûHITûTHEûLOANûANDû will become the second largest
“We still don’t have Direct listing is something bond markets. single-tranche euro-
an answer on when that other, deep-pocketed, Akzo Nobel is selling the denominated term loan B since
they will be profitable” well-known private companies business to Carlyle Group and THEûlNANCIALûCRISISûBEHINDû
are certain to entertain in Singapore’s GIC for a slightly Flora’s €2bn TLB.
future. While the costs of better than expected enterprise
DOINGûSOûAREûNOTûINSIGNIlCANTû value of €10.1bn.
MUCHûOFûTHEûMONEYûISûmOWINGûTOû Barclays, HSBC and JP Morgan “It’s been long awaited
Privately, Spotify shares have lawyers rather than to Wall AREûLEADINGûTHEûlNANCINGû by the markets and is
traded as low as US$48.93 and as Street. alongside Citigroup, Credit Suisse, one that everyone will
high as US$131.88 this year, Investment banks are playing Deutsche Bank, RBC and UBS. want to get a piece of”
through March 14. a limited role. Citadel Securities, a Other banks could also join,
Of the 203.9m fully diluted non-conventional choice, is given the deal’s vast size.
shares outstanding, all but the acting as market-maker with The new-money deal is set to “While it is very large, it is not
16.2m held by China’s TenCent advice from Morgan Stanley, with be well received by investors, SOûLARGEûTHATûITûWILLûREDElNEûTHEû
are freely tradable immediately. Goldman Sachs and Allen & keen for fresh paper to put CLO European market in terms of
That said, founders Daniel Ek CompanyûACTINGûASûlNANCIALû and managed-account cash into. capacity. While it is a European-
and Martin Lorentzon are advisers. “It’s been long awaited by the led deal, it is calling on both
markets and is one that markets and shouldn’t stretch
everyone will want to get a piece either. It falls squarely into the
“The valuation of the Wanlian analysts forecast that of,” a syndicate head said. realms of deals investors want to
healthcare sector is at a high the size of the market will reach The deal follows soon after look at as it is big and liquid, but
level in the A-share market, Rmb100bn by 2020, or a the €4.7bn-equivalent leveraged not so big there is danger of
so WuXi AppTec will have compound annual growth rate LOANûlNANCINGûBACKINGû++2Sû overhang,” the second syndicate
a huge upside potential after of more than 20%, thanks to buyout of Unilever’s spreads head said.
listing, given there is a China’s growing business, Flora Food Group. The deal is expected to launch
valuation cap for A-share pharmaceutical demand, rising “The track record of sponsors for syndication to investors before
IPOs,” said an institutional expenditure on drug R&D, and a buying large deals out of large the summer and is likely to be in
investor. gradual shift of the industry conglomerates has been the market at much the same
“The company is very towards emerging countries. extremely strong. There are a lot time as the US$8bn-equivalent
attractive, because of its big of levers they can pull - the term loan B backing US private
business scale and its leading “The company is very ability to run businesses more EQUITYûlRMû"LACKSTONEû'ROUPSû
position in a fast-growing attractive, because of EFlCIENTLYûORûMOREû acquisition of a majority stake in
industry,” said the investor. commercially and make better Thomson Reuters’ Financial and
WuXi AppTec is a leading
its big business scale use of the assets they have. It Risk unit, as the pipeline of jumbo
GLOBALûCONTRACTûRESEARCHûlRMûFORû and its leading position feels like the sort of deal PE CROSS
BORDERûlNANCINGSûBUILDS
the pharmaceutical, in a fast-growing should be good at and plays into Blackstone is buying a 55%
biotechnology, and medical industry” [their] strengths,” a second stake in F&R, which includes IFR.
device industries. It provides syndicate head said. "ANKSûAREûCONlDENTûTHATûTHEREû
services throughout the drug will be appetite when these
research and development WuXi AppTec plans to sell no CHEMICAL REACTION deals launch for syndication,
process. more than 104m shares, or 4HEûlNANCINGûBACKINGûTHEû!KZOû REMOVINGûANYûSIGNIlCANTûFEARSû
The company posted net about 10% of its enlarged deal equates to around 6.4 times of holding large underwrites on
PROlTûOFû2MBBNûONû capital. the chemicals unit’s balance sheets for the next few
revenues of Rmb5.68bn for the Huatai United Securities is the approximately €1bn Ebitda and months.
lRSTûNINEûMONTHSûOFû sponsor and joint bookrunner is set to comprise €6.5bn- “The market took Flora, and it
China’s contract research with Guotai Junan Securities. equivalent of funded debt and is not like a snake that has
market grew to about Rmb56bn Proceeds will be used for around €700m-€800m of swallowed a pig and can’t eat for
in 2017 from Rmb14bn in 2011, pharmaceutical and biotech undrawn facilities. the next three months. There is
according to a report from projects, as well as working The funded debt is expected appetite,” the second syndicate
Wanlian Securities. capital. to include around €5bn- head said.
BY DAVIDE SCIGLIUZZO, Goldman Sachs Asset Management. yield on the remaining tranche debt. It also changed its mix of
PAULINE RENAUD, ANDREW BERLIN “There is less forbearance some 200bp above the level dollar and euro term loans to
towards disappointment in initially eyed. decrease the overall amount.
Some cracks have emerged in markets today and investors are 4HEûACCOMPANYINGûlRSTûLIENû
the US junk bond market, where less willing to take a leap of faith loan was also increased by NEGATIVE SENTIMENT
investors pushed back against in certain names.” US$200m to US$2.26bn, with Some say investors are
some of the largest bond sales of McDermott’s and Coty’s pricing increased to 500bp in particularly reluctant to buy
the week after getting stung by struggle contrasts with a syndication from 400bp–425bp paper with long maturities from
recent new issues. relatively positive backdrop for and the OID widened to 99 from borrowers that are highly
Engineering and construction the global economy and 99.5. leveraged or in challenging
company MCDERMOTT corporate earnings that sectors.
INTERNATIONAL and beauty investors say are still supportive And that negative sentiment
“Investors are less
products maker COTY were both for high-yield borrowers, even as has seeped into the secondary
forced to cut the size of new the Federal Reserve continues to
willing to take a leap of market. Bonds recently issued by
bond offerings and hike yields raise interest rates. faith in certain names” Frontier Communications, JC
after receiving lukewarm “The market overall has been a Penney and Teva Pharmaceutical
demand from the buyside. little bit challenged,” Brian Kloss, Industries have all dropped by
The disappointing head of high-yield at investment several points in trading,
performance of some recent manager Brandywine Global, according to MarketAxess data.
new issues has hit investor told IFR. “But if you look at global The moves came only a day
sentiment, resulting in a more growth, we think it looks after beauty products maker REVISED TERMS
cautious approach to the reasonable.” Coty similarly dropped the McDermott had begun sounding
primary market. McDermott, which serves the longest-dated portion of a four- out investor appetite for a
“The new issue market has been oil and gas industry, dropped the part, dual-currency junk bond US$950m six-year and a
very choppy,” said Michael longer-dated tranche of its two- sale through which it had US$550m eight-year at yields of
Goldstein, co-head of global high- part bond offering on initially planned to raise mid 8%s and high 8%s,
yield and leveraged loans at Wednesday, and pushed the 53BN
EQUIVALENTûTOûRElNANCEû respectively, when it announced
BY INA ZHOU, DANIEL STANTON when it launched a Rmb1bn of quality international names, a of up to US$60bn on Chinese
debut offshore renminbi trend that bankers hope will goods.
Two past Panda bond issuers offering. help narrow pricing differences A banker on the CAR Inc deal
tapped the offshore renminbi This came after three offshore- between the Dim Sum and said a volatile debt market made
MARKETûFORûTHEûlRSTûTIMEûLASTû incorporated Chinese developers Panda markets. THINGSûDIFlCULTûFORûNEWûISSUESûINû
week, adding to a growing list of made the switch from Panda to general, and particularly for
borrowers who have been drawn Dim Sum bonds earlier: Jinmao Volatile debt market Double B rated names, as
to the Dim Sum market by Holdings Group, Shimao investors lacked risk appetite.
attractive pricing. Property Holdings and Country
made things difficult for On the other hand, currency
Chinese car rental company Garden. new issues in general, appreciation raised interest in
CAR INC, rated Ba3/BB Market participants pointed and particularly for renminbi assets, he said.
(Moody’s/S&P), raised Rmb400m out that more Panda bond Double B rated names CAR Inc priced 6.50% three-
(US$63m) from a maiden issuers might look to lock in year non-call two Dim Sum
offering of Dim Sum bonds, cheaper funding in the offshore notes at 98.80 to yield 6.95% on
about one year after it visited the renminbi market. DELICATE TIMING Monday. CAR Inc’s Dim Sum
Panda bond market. Meanwhile, investors have Last week’s Dim Sum deals were offering would have saved it
German vehicle-maker increasingly been looking launched as the renminbi was 10bp–20bp compared with
DAIMLER (A2/A/A–), a veteran onshore for the relative value of strengthening after US President issuing US dollar notes,
Panda issuer, followed suit Panda bonds, particularly those Donald Trump announced tariffs according to the banker.
the deal on Monday, sources 6%–6.25% area and whispers of facing operating challenges, However, while the high-yield
familiar with the matter told IFR. high 5% area initially eyed, according to Moody’s, which bond market is struggling, the
It later revised those levels to sources told IFR. downgraded the company to leveraged loan market is
high nines and low 10s before Pricing also moved wider on Ba3 this month. The agency proving more resilient.
eventually deciding to drop the the euro-denominated tranches, rates the notes B2. The company “One area of the market that
eight-year portion and shift WITHûlNALûYIELDSûCOMINGûATûû is rated BB by S&P. continues to power ahead with
US$350m to the shorter tranche and 4.75% respectively from 3% little sign of stress is the
and US$200m to a term loan area and 4% area initially. SPEED BUMPS leveraged loan market. With
marketed alongside the notes, The bond offering is part of a A US$645m bond sale backing Libor moving higher and fewer
the sources said. broader US$8bn-equivalent Clayton Dubilier & Rice’s RElNANCINGSûLEVERAGEûLOANû
"UTûBYûTHEûTIMEûITûSETûOFlCIALû RElNANCINGûOFûITSûALL
LOANûDEBTû acquisition of Ply Gem Holdings investors are enjoying the
price talk on Wednesday, pricing load. and Atrium Windows & Doors returns that come with higher
on the remaining six-year “They’re coming at a pretty was also hitting some speed Libor,” said Goldstein.
tranche had moved all the way bad time, just before Easter. bumps on Wednesday. “The economics of owning
up to the 10.5% area, or some Also, if you view it as a Single B, leveraged loans are becoming
200bp wide to the initial you need to be paid for the risk more compelling compared to
whisper. of being unsecured with no “The economics of those of the high-yield and
Offshore-focused McDermott covenant. I think when they owning leveraged investment-grade market. In
is selling the debt to help came with the initial whispers, loans are becoming ADDITIONûTOûINmOWSûONûAûFUNDû
lNANCEûITSûACQUISITIONûOFû people said they were not more compelling mOWûBASISûTHEREûISûAûLOTûOFû
Chicago Bridge & Iron, in a deal interested,” said one investor, demand from CLO investors.”
compared to those
that will give it a foothold in the who also pointed to the lack of Barclays is the lead
onshore market for oil and gas appetite for longer paper in an
of the high-yield and bookrunner on McDermott’s
services. acquisitive name like Coty. investment-grade bond sale, which is rated
Only a day before, Coty The company accumulated a market” B2/B-, while Deutsche Bank is
similarly cut the size of its bond large amount of debt in 2016 the lead on the bond for Ply
offering to US$1.5bn-equivalent when it bought the beauty Price talk on the deal was set Gem and Atrium, which is
from US$2bn initially sought, products division of Procter & at 7.75%–8%, wide to whispers of expected to be rated Caa1/CCC+.
after removing a US dollar 10- Gamble. It will now make up for the low 7% area that had Both are scheduled to price on
year from its offering, which the smaller bond and loan size circulated earlier in the week. Thursday.
ALSOûINCLUDESûlVE
YEARûANDûEIGHT
with balance sheet cash and a The deal also includes a Morgan Stanley and BNP
year tranches in euros. revolver drawdown. US$1.755bn Term Loan B, which Paribas, respectively, led the US
It priced the remaining eight- Coty has struggled to reduce priced at 375bp, after being dollar and euro portions of the
year US dollar tranche at 6.5%, leverage as it continued to pay launched with guidance of Coty deal, which is rated B2/BB
which was wide to price talk of generous dividends despite 300bp–325bp. and priced on Wednesday.
The next day, Daimler sold become more expensive than He also said a reviving Dim OFûlVE
YEARûNOTESûATûPARûTOûYIELDû
three-year notes at par to yield Dim Sum notes particularly for Sum market was not necessarily 6.4%.
4.80%, as the Chinese currency quality international credits like bad news for Panda bonds, as Offshore investors are also
rose to a seven-week high Daimler.” interest has been growing from starting to move onshore.
against the dollar, a sign Daimler has been selling international investors towards Desmond Soon, head of
interpreted by the market as Panda bonds since March 2014 the higher-yielding Panda investment management, Asia
part of China’s efforts to smooth WHENûITûBECAMEûTHEûlRSTûFOREIGNû bonds. ex-Japan, at Western Asset
trade tensions with the US. corporation to sell renminbi Some investors were even Management, said WAM was
bonds in China, with a willing to make the effort to doing more trades in the
Rmb500m private placement register with the National Chinese interbank bond market
“Panda bonds have
deal. Association of Financial Market these days and working on
become more expensive /VERûTHEûPASTûlVEûYEARSûITûHASû Institutional Investors as moving more global funds into
than Dim Sum notes raised Rmb30bn from Panda members in order to be able to the onshore bond market.
particularly for quality bonds and still has a Panda bond buy privately placed Panda bond
international credits quota of over Rmb20bn. issues by international names.
Interest has been
like Daimler” “A few offshore investors
YIELD-CHASING intend to buy the Panda notes of growing from
A banker familiar with Air Liquide and are going international investors
Daimler’s Dim Sum bonds Daimler’s Panda bond through the registration towards the higher-
were deep inside its Panda bond programme said opportunistic process,” said a source familiar yielding Panda bonds
curve. Its 2021 5.60% Panda Dim Sum offerings could not with Air Liquide’s deal.
bonds were bid at 5.58% last replace Panda bonds for the In early March, French
Wednesday. vehicle-maker, as a bigger industrial gases company Air WAM has reduced the
A Shanghai-based DCM and deeper onshore market Liquide, rated A3/A– proportion of US dollar assets in
banker away from the deal said caters better to its large (Moody’s/S&P), privately placed its Asia bond fund by about 15%
“4.80% is the pricing Daimler funding needs in China in the Rmb1.4bn of three-year notes at compared with this time last
deserves. Panda bonds have long term. par to yield 5.95% and Rmb800m year.
BY ROBERT HOGG Instead, debut borrower US$1bn October 2025 Islamic Another factor in the quasi-
MANNAI CORP has put itself at the bond issue. (See story on page 4.) sovereign’s favour, according to
The 10-month long hibernation front of the queue. “Qatari credits are well liked the banker away, is that it will
for Qatari issuers frozen out of The conglomerate, which is in Asia,” added the banker. be an issuer from a highly rated
major international markets 66% owned by entities Asian investors could look at a jurisdiction.
looks set to be broken by an representing the Qatar string of regional names that have Although Mannai’s bonds will
unexpected name. government and royal family, issued senior perpetual notes to be unrated, Qatar is a Double A
No Qatari borrower has has named banks for a potential gauge potential value. For credit, albeit one that has seen the
accessed the mainstream US US dollar senior perpetual non- EXAMPLEûOILûRElNERû0ETRONûSOLDû yield on its June 2026 notes jump
dollar market since a spat with CALLûlVEûBONDûOFFERING US$500m 4.6% senior perpetuals to just over 4% from a low 3% level
Doha’s Gulf neighbours erupted Mannai will visit investors in in January, while Philippine peer before the breakdown in relations.
in June when Saudi Arabia, the Switzerland, London and Asia. ICTSI raised US$350m through
United Arab Emirates and A lead banker reckoned there ûlXED
FOR
LIFEûNOTES TREADING A TIGHTROPE
Bahrain cut diplomatic ties and are few direct comparables for the Perpetuals are costlier than For investors, there should be no
imposed an economic boycott, bond from a company that has dated senior bonds, and issuers problem with participating in
protesting against Qatar’s international businesses in the IT, typically need to incorporate a the deal irrespective of the
relationship with Iran. retail and automotive sectors. coupon reset and a hefty step-up bigger political issues. Although
Market participants had One banker away from the deal if not called in order to attract some banks have been treading a
expected that the sovereign or expects the transaction to go investors. tightrope in the region, fearful
national champion Qatar well, assuming the market Petron’s deal, which that close ties with Doha could
National Bank would lead the doesn’t suffer a meltdown. “It’s incorporated both resets and hurt business relations with
way in testing investor appetite. quite gutsy timing given that step-up, demonstrated that Saudi Arabia, investors are likely
But nothing has been Bahrain is paying a 100bp dynamic by seeing stronger to be far less sensitive, especially
forthcoming bar some deals by premium but there should be support than ICTSI, which given the potential yield on offer.
Qatari lenders, including QNB, in good demand from Asia,” he said. had neither. Mannai’s notes Bank of America Merrill Lynch is
niche markets such as the Last week Bahrain paid a will have a 500bp coupon global coordinator. The US bank
Australian dollar, Swiss franc and huge pick-up over its March step-up if the notes are not is joined by Nomura and Standard
Taiwanese Formosa. 2025 sukuk offering for a called. Chartered as lead managers.
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15
&
London keeps
its crown as
Markets
17 Technology
banker Jan 19 Wall Street
bonuses jump
the leading financial Metzger is to run Citi’s 17% to an average
centre, but its lead investment bank in US$184,220 - the
over New York and Asia as the bank bets second highest ever
Asian rivals narrows tech will stay lively payday
Shanghai (6)
Toronto (7)
San Francisco (8)
Paris (24)
Frankfurt (20)
Zurich (16)
provide a back-stop for companies to business will shift to other EU cities, New
continue their operations, the BoE said. York or elsewhere.
%ARLIERûTHISûMONTHû"RITAINSûlNANCEû The GFCI report said respondents
minister Philip Hammond said once the described the impact of Brexit on the
transition was agreed regulators should business environment as a major source of
tell companies they can rely upon it. UNCERTAINTYûFORûALLûlNANCIALûCENTRESûNOTû Source: Z/Yen Global Financial Centres Index 23. Scores are out
Andrew MacAskill just London. of 1,000
CITIGROUP has Europe and Europe Veteran debt capital Scotland’s DCM fixed
appointed Cecilia cluster head. Ronan markets banker Tim income team, which he
Ronan as its country joined Citi in 2000 and Skeet is set to return to joined in April 2011, but
head for Ireland, in held a number of the market after more was put at risk at the
addition to her role as senior roles across than two years out, end of 2015. He is
chief administrative Europe in operations sources said. They said currently a senior
officer for Citibank and technology. She Skeet is heading to adviser at the
Europe, its major previously worked for BANK OF CHINA to International Capital
business Microsoft. Citi has work on coverage for Market Association.
headquartered in more than 2,500 western Europe BoC has been actively
Dublin. Ronan will people in Ireland. financial institutions. expanding its network
report to Zdenek Turek, He last worked in in Europe.
CEO of Citibank Royal Bank of
Ignacio Maldonado ECM but also covered Former Citigroup capital, and has now The heads of ING after 18 years,
is leaving BAML after ECM in Turkey and the veteran Najeeb Haider been tasked with European equity moving into a new role
12 years and will take a Middle East. Before has been appointed implementing it. He syndicate at ING and as senior adviser in
few months out to BAML, he was at manager for investment previously spent over SANTANDER are ECM, working across
explore opportunities. Santander in ECM and operations at the ASIAN two decades with moving on, with syndicate, broking and
Maldonado joined investment banking. INFRASTRUCTURE Citigroup, most recently internal replacements origination. Bjorn Krook
Merrill Lynch in 2005, INVESTMENT BANK. leading its project and lined up to replace takes over Balt’s role
shortly after Craig Haider spent the past 18 infrastructure finance them. Ignacio Pena has on April 1. Krook joined
Coben, now vice- months in the policy and group for Asia Pacific, left Santander and has the ING syndicate desk
chairman of global strategy team at the based in Hong Kong. He been succeeded by at the start of 2017
capital markets. Most China-led multilateral is currently based in Simon Payne. Kim Balt from ABN AMRO.
recently, Maldonado bank, devising a plan for Beijing. has also ended
was head of Iberia mobilising private running syndicate at
AMERICAS INVESTMENT BANKING ASIA-PACIFIC & JAPAN INVESTMENT BANKING EMEA INVESTMENT BANKING
Managing No of Total Share Managing No of Total Share Managing No of Total Share
bank or group issues US$(m) (%) bank or group issues US$(m) (%) bank or group issues US$(m) (%)
1 JP Morgan 667 1,041.5 9.1 1 Mizuho Financial 535 329.4 6.0 1 JP Morgan 240 372.3 6.2
2 BAML 693 871.4 7.6 2 Sumitomo Mitsui 511 251.0 4.6 2 Barclays 207 303.0 5.0
3 Goldman Sachs 356 831.8 7.3 3 Bank of China 433 233.7 4.3 3 Goldman Sachs 148 292.4 4.9
4 Morgan Stanley 423 830.6 7.2 4 Morgan Stanley 262 211.0 3.8 4 Deutsche Bank 250 280.0 4.7
5 Citigroup 513 641.0 5.6 5 Citic 556 190.9 3.5 5 Citigroup 229 273.5 4.6
6 Barclays 414 559.1 4.9 6 Citigroup 132 176.0 3.2 6 HSBC 267 257.5 4.3
7 Credit Suisse 292 478.2 4.2 7 MUFG 384 172.0 3.1 7 BNP Paribas 240 246.8 4.1
8 Wells Fargo 652 409.3 3.6 8 Goldman Sachs 104 171.6 3.1 8 Morgan Stanley 124 201.8 3.4
9 RBC CM 464 380.3 3.3 9 UBS 77 165.8 3.0 9 BAML 145 197.1 3.3
10 Deutsche Bank 301 363.2 3.2 10 JP Morgan 64 148.2 2.7 10 SG CIB 189 169.5 2.8
Total 4,337 11,468.1 Total 4,893 5,485.2 Total 2,413 6,004.5
1/1/2018 to 29/3/2018
Source: Thomson Reuters
workout plan
TRADING TIE-UP
US exchange operator CME GROUP is buying Michael
Spencer’s NEX GROUP, valuing the British firm at about
The Singapore Exchange has questioned 75% must vote in favour. It would also need a £3.9bn (US$5.5bn) and creating a cross-border
whether the proposed restructuring of NOBLE majority of shareholders to approve the trading powerhouse. Shareholders in NEX, which
GROUP is a “fait accompli”, since much of it transfer of assets to a new vehicle. matches buyers and sellers of bonds, swaps and
could go ahead even if shareholders opposed The restructuring proposal currently currencies, will receive £5 in cash for each NEX share
a core part of the scheme. under consideration would then assign and 0.0444 new CME shares, worth about £10 apiece.
Noble Group said that, if shareholders creditors, shareholders and management The offer by CEM, one of the world’s biggest
voted down a plan to move assets to a new shares in that vehicle and issue new debt. exchange groups and owner of the Chicago Board of
vehicle as part of a restructuring proposal, it Under an alternative restructuring Trade and Chicago Mercantile Exchange, represents
planned to put the company into insolvency proposal outlined in the RSA, if the company a 2.9% premium to NEX’s closing share price on
proceedings in the UK. were to enter administration, senior Wednesday. NEX’s shares rose 30% in 2017.
The commodities trader said it creditors would grant shares to existing Attempts at major exchange mergers, such as
“anticipated” that a court-appointed shareholders only if they had voted in favour the one between the London Stock Exchange and
administrator would take steps to implement of transferring assets to the new Noble Deutsche Boerse, have hit regular antitrust buffers
the scheme detailed in a restructuring entity – even though, in that scenario, the in recent years, but CME’s expansion by buying NEX
support agreement (RSA) – signed by holders vote would have failed. could be easier for regulators and politicians to accept.
of 55% of Noble’s senior debt, as of Noble said existing shareholders voting in CME said the deal would create significant
Wednesday – given that it would need to favour of the asset transfer would receive efficiencies across futures, cash and over-the-
serve the best interests of creditors, but there shares “in at least the same proportion in counter products. The deal would also expand
was no certainty that this would happen. which they would have received shares in CME’s international footprint in Europe, the Middle
“The board has provided no back-up for its New Noble if the shareholder consents had East, Africa and Asia, CME said, and is expected to
POSITIONûTHATûANûARTIlCIALûADMINISTRATIONû been passed and the primary restructuring deliver annual cost savings of US$200m.
process in England would be better than had been implemented”.
judicial management in Singapore, where Shareholders who voted against it would
Noble has real connections and investors,” not receive any recovery on their stakes if BARCLAYS FINE
said Goldilocks, which holds an 8.2% stake in the company went into administration, and BARCLAYS has agreed to pay US$2bn for allegedly
Noble, in a statement issued through law the asset transfer could happen anyway. causing billions of dollars of losses to investors
lRMû-ORGANû,EWISû3TAMFORD Goldilocks questioned whether this was the by engaging in a fraudulent scheme to sell
Noble said it expected participation in the correct use of the UK administration process. residential mortgage-backed securities between
RSA to rise further by April 11, the deadline h4HEûlRSTûSTATUTORYûPURPOSEûOFû 2005 and 2007, the US Justice Department said.
for senior creditors to take part in the new administration is the rescue of a company as The DoJ said Barclays misled investors about
facility as backstop lenders, for which they a going concern,” it wrote. “The alternative the quality of the mortgage loans backing those
would be paid a fee. restructuring requires the transfer of all of deals and committed violations of mail fraud and
In order for Noble’s restructuring proposal Noble’s assets to New Noble, resulting in a bank fraud. According to the DoJ’s statement,
to pass, it requires a vote of senior creditors ‘shell’ company remaining.” Barclays disputes the allegations.
holding at least 75% of the debt, of which Daniel Stanton Two former Barclays executives, Paul Menefee
and John Carroll, who worked on the RMBS deals,
paid a combined US$2m in exchange for claims
China prioritises risk prevention against them being dismissed, the DoJ said.
The right-hand man of Chinese President Xi However, Liu is no fan of the debt-driven CHINA RATINGS
Jinping for economic affairs has told the growth model. Foreign rating agencies can now apply for licences
COUNTRYSûRECENTLYûRESHUFmEDûREGULATORSûTHATû “Liu is a critic of the debt-fuelled to assess credits in China’s interbank bond market,
their top priority is to prevent risks in the programme that China adopted following opening the door to more direct competition
lNANCIALûSECTOR THEû;GLOBAL=ûlNANCIALûCRISISûORûATûLEASTûFEELSû with their Chinese counterparts. Foreign rating
Vice-Premier Liu He said China also that it has continued for too long and that agencies will need to document their home-
NEEDEDûTOûDEEPENûlNANCIALûREFORMSûANDû government stimulus cannot be the main country regulatory approvals, list of branches in
further open up the sector, with market driver of growth,” said Tony Saich, an expert China, and contact persons there.
forces providing the cue, according to the in Chinese politics at Harvard’s Kennedy China’s regulator will grant two types of licences:
OFlCIALû8INHUAûNEWSûAGENCY School of Government. category A, which gives full ability to rate all securities
h4OûWINûTHEûBATTLEûAGAINSTûlNANCIALûRISKSûISû Liu, on what Xinhua described as an in the interbank bond market, or category B, which
AûPRIORITYûOFûTHEûCOUNTRYSûCURRENTûlNANCIALû inspection trip, told the central bank and grants limited access, based on the regulator’s
WORKvûSAIDû,IUûAûTRUSTEDûCONlDANTûOFû8I lNANCIALûREGULATORSûTHATûEFFORTûSHOULDûBEû assessment. Category A licences cover financial
China’s oft-repeated commitment to made on supporting the real economy while bonds, non-financial debt instruments, asset-backed
deleverage the economy has been met with keeping monetary policy prudent and securities and bonds that offshore entities issued.
scepticism, with critics saying it might fall neutral and ensuring reasonable and stable Market participants said the new regime would not
back on the old playbook of credit-fuelled LIQUIDITYûINûTHEûlNANCIALûSYSTEM lead to immediate, full-scale competition between
investment when growth slows. Reuters reporters domestic and foreign agencies.
CLO market professionals use LPC Collateral to run market value coverage analysis on CLO
tranches and to compare holdings, asset breakdowns and overlap across CLOs.
LPC Collateral also includes Thomson Reuters LPC’s loan market news and data, enabling
users to dive into the underlying collateral of CLOs. The historical performance of CLOs can be
analysed using LPC Collateral’s charting function, then benchmarked against other deals and
market segments.
CONNECT TO THE GLOBAL SYNDICATED LOAN MARKET WITH THOMSON REUTERS LPC
lpc.info@thomsonreuters.com
www.loanpricing.com
SSAR 27 Corporates 29 FIG 32 Covered Bonds 34 High-Yield 35 Structured Finance 37
BONDS
22/1/18
29/1/18
5/2/18
12/2/18
19/2/18
26/2/18
5/3/18
12/3/18
19/3/18
26/3/18
“The ECB will look at the bank future Credit Suisse, Deutsche Bank, JP Morgan and
PROlTABILITYûSOûPAYINGûDOUBLEûDIGITSûCOULDû UBS were joint bookrunners on the deal.
actually be detrimental,” Alloatti added. Source: Thomson Reuters Alice Gledhill
TOûLEAVEûTHEûlRSTûQUARTERûBEHIND improve in the near term, and that there are 2.5
Total returns were negative 2.5% and already signs of that.
2.4
spreads widened 18bp on average, according Issuance in April typically tends to be
16/01/18
09/01/18
13/02/18
20/02/18
06/03/18
23/01/18
06/02/18
13/03/18
30/01/18
27/03/18
20/03/18
27/02/18
02/01/18
to ICE BAML data. And many borrowers had lower as the earnings season gets under way,
to pay double-digit new-issue concessions, and that might help spreads. Issuance for the
which they had not seen in quite some time. month was US$80.7bn in 2017 and
Yet some in the market believe the US$90.835bn in 2016, IFR data show.
COMINGûQUARTERûCOULDûBEûEVENûMOREûDIFlCULT “The market has shown evidence of
Matt King, senior analyst at Citigroup,
warned that the three main sources of liquidity
healthier demand despite increased investor
selectivity and price discipline,” Graper said.
21bp
THE SIZE OF THE CONCESSION
for corporate bonds have dried up. And as the Issuers last week got a mixed reception in THAT CITIZENS BANK (Baa1/A-) PAID
buyer base has shrunk, many companies have the market. FOR A US$500m MARCH 2023 NEW ISSUE
found themselves paying more to raise debt. Some credits such as CENTERPOINT ENERGY LAST WEEK
“Corporate treasurers are shifting out of RESOURCES and MYLAN paid double-digit new-
corporates and into short-duration money issue concessions even as equities were
markets following tax reform. Foreign investors
have stopped buying as higher dollar Libor has
rising. But others saw a better response, with
REALTY INCOME upsizing its trade to US$500m
7%
THE LEVEL AT WHICH SPAIN’S IBERCAJA
raised their hedge costs,” King told IFR. and paying only a 4bp NIC. PRICED A €350m PERP NON-CALL FIVE
“And even the domestic mutual-fund bid has AT1, ONE OF THE HIGHEST YIELDS
evaporated, as higher rates have made less risky OUT OF FAVOUR AVAILABLE IN THE ASSET CLASS. IT DID,
instruments like short-maturity Treasuries Some see weakened foreign demand as the HOWEVER, TIGHTEN BY 50bp FROM THE
seem more attractive by comparison.” biggest risk to the high-grade market, as it WIDE END OF IPTs AFTER DRAWING A
has been such a crucial part of the investor BOOK IN EXCESS OF €950m
M&A WILD CARD base in recent years.
US high-grade issuance was just over "ETWEENûûANDûûFOREIGNûmOWSû
53BNûINûTHEûlRSTûQUARTERûCOMPAREDû
with US$387.032bn in the same period in
accounted for half of the bid for US
investment-grade credit, said Stephen
10bp
THE AMOUNT THE US DOLLAR
2017, according to IFR data. Caprio, credit strategist at UBS. TWO-YEAR SWAP SPREAD HAS WIDENED
Even so, spreads have widened out to But foreign exchange hedging costs for THIS QUARTER. AT ONE POINT IT WAS
Treasuries plus 116bp, their widest levels euro and yen-based investors have spiked to 15bp DUE TO A SQUEEZE IN DOLLAR
since September 2017. post-crisis peaks in recent weeks, leaving LIQUIDITY
“Technical weakness and spikes in FOREIGNûmOWSûATûNEGLIGIBLEûLEVELS bp
35
volatility have taken spreads off all-time The worst-case scenario is that foreign
33
tights, but much of that weakness has been high-grade bond investors start selling
31
mitigated by relative undersupply,” said outright, Caprio said, though that has not 29
Meghan Graper, managing director, happened just yet. 27
investment-grade syndicate, at Barclays. “We’ve heard of some position adjustment 25
Some fear that, if demand for bonds continues where the bid has moved from the short end 23
to taper off, conditions could become even tougher to intermediate part of the curve as a way to 21
19
for borrowers, with at least three more Fed rate offset hedging costs,” he said. “But we don’t
17
hikes expected this year and a potential pick-up in see much selling outright.”
15
06/03/18
06/02/18
13/03/18
13/02/18
09/01/18
20/02/18
27/02/18
02/01/18
16/01/18
20/03/18
27/03/18
30/01/18
23/01/18
a bigger deal than its US$3bn December The World Bank’s two-year paper trades
2020 that came in November last year. The in the high single digits/low double digits
SSAR new trade was the joint largest SSA three- through, for example, discounting much of
year US dollar trade of 2018. the demand that would have come from
“There were a few issues to do with bank treasuries that need Libor plus type
US DOLLARS quarter-end and a few accounts had to hold spreads.
back, which was a bit unfortunate, but it “Investors mistrust the huge swap spread
CONCESSIONS RISE IN WOBBLY was of good quality so we were able to do widening on the US dollar side and are just
DOLLAR MARKET US$4bn,” the lead said. not willing to accept the tighter valuation of
“KfW was keen to come now as a lot of SSA product,” a banker away from the KfW
KFW was the latest issuer to have to pay an issuers are expected to come after Easter trade said.
elevated new issue concession in the US dollar and they wanted to avoid being in the “The required new issue concessions are
market last week, offering 3bp to get a US$4bn crowd.” basically the same as in euros, which some
three-year away as conditions remained febrile issuers are not necessarily willing to accept. The
ahead of what is expected to be a busy week. WHO’S NEXT? fact that the swap spread move is driven by the
The German agency landed the deal via The INTERNATIONAL DEVELOPMENT ASSOCIATION increase in Libor means that there’s a danger it
Citigroup, Nomura and RBCûmATûTOûMID
SWAPSû (IDA), the part of the World Bank that helps could collapse the other way if sentiment
a level that offered investors a generous the world’s poorest countries, is preparing reverses, and some investors are reluctant to
pick-up but was necessary in order to get the the ground to make its debut entry into the buy stuff at such deep Libor levels.”
deal size away. international markets, and could come after Central banks and asset managers took
Gyrations in the underlying market off Easter. 74% of KfW’s trade, with the Americas and
which public sector issuers price their bonds The WORLD BANK itself also has yet to make Europe taking down the lion’s share at 77%.
has made issuance trickier recently, with a an appearance in the US dollar market this
US$500m two-year transaction for the year.
Nordic Investment Bank recently failing to The tight sub-Libor level at which its EUROS
cross the line, for example. paper trades could mean a big new issue
“It does feel like new issue premiums are concession if the issuer wants to raise a large FRANCE REFRESHES LINKER CURVE,
elevated right now but the market is really deal size. GETS BIGGEST BOOK YET
distorted at the front end,” said a lead. “It’s very hard to get US$5bn done right
“NIB paid around 3bp, Kommunalbanken now given how tight levels are to swaps, AGENCE FRANCE TRESOR lured a record order
around 7bp, and issuers feel that they need issuers may need to do smaller deals and BOOKûFORûITSûlRSTûINmATION
LINKEDûSYNDICATIONû
TOûTRYûANDûREACHûTHEûMID
SWAPSûmATûMARKû come more often,” another banker on the since September 2016, a €3.5bn July 2036
otherwise they are worried they won’t get trade said. “There is an acknowledgment deal that also set a record-low real yield at
enough demand.” among market participants that rates will go issue in a syndication for the country.
In the case of KfW, the issuer attracted up and that will affect the short-end of the "OOKSûFORûTHEûEUROZONESûlRSTûSYNDICATEDû
over US$5bn of demand, allowing it to print curve.” linker of 2018 passed €11.5bn despite a
ALL INTERNATIONAL BONDS (ALL CURRENCIES) ALL BONDS IN EUROS ALL US DOLLAR FIXED-RATE GLOBALS
BOOKRUNNERS: 1/1/2018 TO DATE BOOKRUNNERS: 1/1/2018 TO DATE BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share Managing No of Total Share Managing No of Total Share
bank or group issues US$(m) (%) bank or group issues €(m) (%) bank or group issues US$(m) (%)
1 JP Morgan 285 85,168.47 7.6 1 SG 85 25,356.19 6.8 1 JP Morgan 55 25,349.68 12.0
2 Citigroup 282 75,281.02 6.7 2 BNP Paribas 97 24,933.91 6.6 2 BAML 57 23,889.47 11.3
3 Barclays 217 70,911.51 6.3 3 Barclays 73 22,228.08 5.9 3 Goldman Sachs 39 20,518.59 9.7
4 BAML 220 62,667.15 5.6 4 Deutsche Bank 100 21,353.47 5.7 4 Barclays 34 19,373.21 9.2
5 HSBC 272 58,413.84 5.2 5 UniCredit 91 20,749.32 5.5 5 Citigroup 58 19,086.79 9.0
6 Goldman Sachs 162 57,218.95 5.1 6 Credit Agricole 73 20,521.52 5.5 6 Wells Fargo 31 13,908.22 6.6
7 Deutsche Bank 224 50,603.61 4.5 7 HSBC 103 20,371.74 5.4 7 Morgan Stanley 30 10,344.79 4.9
8 BNP Paribas 191 48,821.04 4.3 8 JP Morgan 67 19,888.39 5.3 8 Deutsche Bank 22 8,536.96 4.0
9 SG 127 38,106.09 3.4 9 Citigroup 59 16,505.75 4.4 9 HSBC 20 7,282.38 3.4
10 Morgan Stanley 160 36,701.36 3.3 10 Goldman Sachs 47 16,474.11 4.4 10 TD Securities 22 6,985.28 3.3
Total 1,510 1,123,906.50 Total 467 375,349.59 Total 119 211,511.91
Including Euro, foreign, global issues. Excluding equity-related debt, Including Euro-preferreds. Excluding equity-related debt, Excluding equity-related debt, ABS/MBS.
US Global ABS/MBS. US Global ABS/MBS.
Source: Thomson Reuters SDC code: J1 Source: Thomson Reuters SDC code: N1 Source: Thomson Reuters SDC code: O5
ALL EURODOLLAR STRAIGHTS ALL INTERNATIONAL US$ BONDS ALL SOVEREIGN BONDS IN EUROS
BOOKRUNNERS: 1/1/2018 TO DATE BOOKRUNNERS: 1/1/2018 TO DATE BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share Managing No of Total Share Managing No of Total Share
bank or group issues US$(m) (%) bank or group issues US$(m) (%) bank or group issues €(m) (%)
1 JP Morgan 50 10,387.29 13.6 1 JP Morgan 192 55,458.97 10.0 1 Barclays 10 8,509.20 12.0
2 Wells Fargo 45 7,421.68 9.7 2 Citigroup 209 52,353.44 9.4 2 Citigroup 13 8,121.10 11.5
3 BAML 45 6,350.78 8.3 3 BAML 165 44,561.30 8.0 3 JP Morgan 10 7,911.91 11.2
4 Goldman Sachs 30 5,574.82 7.3 4 Barclays 121 39,900.59 7.2 4 NatWest Markets 5 6,161.45 8.7
5 Citigroup 35 5,394.34 7.1 5 Goldman Sachs 110 36,186.63 6.5 5 BNP Paribas 9 5,158.66 7.3
6 Deutsche Bank 31 5,244.05 6.9 6 Wells Fargo 97 28,690.33 5.2 6 HSBC 6 4,187.31 5.9
7 Credit Suisse 31 5,240.25 6.9 7 Morgan Stanley 111 28,356.29 5.1 7 SG 6 3,430.40 4.8
8 Morgan Stanley 23 3,906.72 5.1 8 HSBC 110 24,550.91 4.4 8 Santander Global 4 3,428.70 4.8
9 Barclays 24 3,614.17 4.7 9 Deutsche Bank 95 21,316.32 3.8 9 ING 3 3,087.00 4.4
10 Mizuho 13 3,561.25 4.7 10 Credit Suisse 96 19,141.19 3.4 10 Goldman Sachs 5 2,858.95 4.0
Total 137 76,223.33 Total 627 557,072.95 Total 21 70,794.87
Including Euromarket preferreds. Excluding equity-related debt. Including Euro, foreign and global issues. Excluding equity-related debt, Excluding ABS/MBS.
US Global ABS/MBS.
Source: Thomson Reuters SDC code: J12 Source: Thomson Reuters SDC code: O1 Source: Thomson Reuters SDC code: N4
ALL AGENCY BONDS IN EUROS ALL SUPRANATIONAL BONDS IN EUROS MUNICIPAL, CITY, STATE, PROVINCE ISSUES IN EUROS
BOOKRUNNERS: 1/1/2018 TO DATE BOOKRUNNERS: 1/1/2018 TO DATE BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share Managing No of Total Share Managing No of Total Share
bank or group issues €(m) (%) bank or group issues €(m) (%) bank or group issues €(m) (%)
1 HSBC 11 3,498.07 10.9 1 Credit Agricole 7 3,952.63 12.5 1 DGZ-DekaBank 13 2,165.88 16.8
2 UniCredit 4 2,726.56 8.5 2 UniCredit 5 3,719.95 11.8 2 UniCredit 14 1,658.70 12.9
3 SG 9 2,661.50 8.3 3 Barclays 5 3,581.26 11.3 3 LBBW 11 1,410.02 10.9
4 BNP Paribas 5 2,425.45 7.6 4 Commerzbank 5 3,511.72 11.1 4 HSBC 9 1,271.21 9.9
5 Goldman Sachs 3 2,099.74 6.6 5 JP Morgan 3 2,302.06 7.3 5 Nord/LB 9 1,037.86 8.1
6 Commerzbank 3 2,015.55 6.3 6 Goldman Sachs 3 2,218.37 7.0 6 Deutsche Bank 7 688.21 5.3
7 Credit Agricole 7 1,889.06 5.9 7 Deutsche Bank 5 1,941.70 6.2 7 JP Morgan 3 443.59 3.4
8 JP Morgan 7 1,879.68 5.9 8 SG 3 1,905.44 6.0 8 Barclays 3 407.50 3.2
9 Deutsche Bank 7 1,618.75 5.1 9 BAML 3 1,695.69 5.4 9 Cooperatieve Rabobank 1 403.77 3.1
10 Natixis 5 1,458.04 4.6 10 NatWest Markets 1 1,481.08 4.7 =9 Credit Agricole 1 403.77 3.1
Total 41 32,018.59 Total 25 31,556.91 Total 40 12,883.39
Excluding equity-related debt. Including publicly owned institutions. Excluding ABS/MBS. Excluding ABS/MBS.
Source: Thomson Reuters SDC code: N6 Source: Thomson Reuters SDC code: N5 Source: Thomson Reuters SDC code: N7
more likely you are to see a convergence usual with these trades, there was little in
with the central bank target.” THEûWAYûOFûlREWORKS
Banks, insurance companies, pension CORPORATES
JLMS SHOW THEIR STRENGTH FUNDSûINSURANCEûCOMPANIESûANDûOFlCIALû
4HEûDEALûBENElTEDûFROMûSTRONGûJOINTûLEADû institutions tend to be the typical buyers of
manager interest of €3.65bn. German state deals. EUROS
While JLM orders tend to play a role in “It’s developing steadily but don’t expect
sovereign syndications – Spain had €3.35bn miracles,” a lead said early in the process. AKELIUS TAKES HYBRID PLUNGE
for its linker in 2017 – the proportion this “This is coming pre-Easter, pre the end
time was higher than usual for a France OFûTHEûlRSTûQUARTERûANDûWEVEûSEENûRECENTû AKELIUS RESIDENTIAL PROPERTY on Tuesday
INmATIONûOUTING, albeit in the context of a transactions in other sectors widen and BROUGHTûTHEûlRSTûEUROûDEALûTOûTHEûCORPORATEû
larger total book size overall. post-trade performance has not been market in almost a week, taking advantage
“Banks took 36% but that wasn’t just the inspiring.” of an improved backdrop to sell its debut
joint lead manager interest: you have to A €500m Bremen 10-year that came at less hybrid trade.
INCLUDEûASûWELLûINûTHISûlGUREûTHEûINTERESTûOFû 18bp late February was quoted at less 13.5bp Skipping the IPT stage, leads Barclays,
the ALM side of various banks, primary on Tuesday. Danske Bank and Deutsche Bank (B&D)
dealers and non-primary dealers,” said But in the end, there was enough demand announced guidance for the 60.5NC5.5 at 4%
Requin. for the deal to clear, with books passing the AREAûWITHûAûBANKERûPOINTINGûTOûTHEûDIFlCULTYû
“Even if you remove that interest from €590m mark, excluding joint lead manager in gauging fair value despite Akelius having
JLMs, we still had record demand. Also, in interest. It priced in line with the less 18bp issued senior bonds before.
the allocation we favour real money area guidance. &INALûGUIDANCEûWASûRElNEDûTOû
û
investors. For the trading desks, there is an The transaction did not offer much in the AHEADûOFûlNALûTERMSûATûTHEûTIGHTûENDûFORûAû
interest in having paper, as some investors way of premium, with less 18bp more or less €500m print on books of €980m.
who can’t come in in primary might do in mATûTOûWHEREû"ADEN
7UERTTEMBERGSûõMû “We’ve been having a lot of investor
secondary and they need to be able to offer 0.625% February 2027 was quoted on dialogue, as you can tell by the fact that we
some paper.” Tradeweb on the day of execution. went straight to guidance, but the hard bit
“The Laender are somewhat peculiar and WASûlNDINGûOUTûWHEREûPEOPLEûAREûPREPAREDû
ESM/EFSF OUTLINE Q2 PLANS look quite expensive,” the lead said. “At the to buy a new hybrid given the sell-off in
same price, investors can buy into a €5bn secondaries,” said the banker.
The EUROPEAN STABILITY MECHANISM and KfW. It will be the usual suspects.” “Investors like the name, the story, but
EUROPEAN FINANCIAL STABILITY FACILITY have The tenor is not the most popular with it’s a question of where they put the line in
outlined their funding plans for the second investors at the moment, who either favour the sand to come back to the credit.”
quarter, which will take them a step further shorter-dated transactions, as seen with The deal was holding up well in the
towards meeting their €46bn combined +F7SûRECENTûõBNûlVE
YEARûORûTRADESûWITHû secondary market on Thursday last week,
needs for 2018. 15-year-plus maturities. bid at par, according to Thomson Reuters
The two have a €8.5bn target for Q2 - the “It is a bit of a no man’s land,” the lead data. It priced at 99.654.
smallest quarter of the year - split €3.5bn for said. “Coupon-wise it’s not the most exciting Mandated two weeks ago as a
the ESM and €5bn for the EFSF. and the aggressive spread means that you €300m-€500m NC5.5, the Swedish company’s
The funding update follows last Tuesday’s get a 0.875% coupon at best.” issue was launched four working days after
announcement that the ESM had approved The deal, via Barclays, BayernLB, DZ Bank, the roadshow ended because of softer market
a €6.7bn disbursement for Greece following HSBC, LBBW and UniCredit, came with a 0.80% conditions in the wake of heavy supply.
the government’s conclusion of another coupon, giving a yield of 0.811% at the “When they announced this deal the
round of reforms. 99.895 reoffer price. market was much tighter in hybrids across
“Greece still has to meet some tight the board,” said the banker.
deadlines to complete the fourth review in FINLAND TO RETURN TO EURO AND US 4HEûI"OXXûEUROûNON
lNANCIALSû
time for the end of the programme in DOLLAR MARKETS subordinated index moved meaningfully
August, when it needs to be able to fully higher, from 2.13% on March 13 to 2.40% as
RElNANCEûITSELFûINûTHEûMARKETûAGAINvû%3-û FINLAND’s State Treasury said last Wednesday at Wednesday’s close last week.
said in a statement. that it plans to issue a new euro benchmark But already signs of recovery have been
“But it is now already clear that the total bond in the second half of this year, as well evident. On March 19, Iberdrola brought its
amount that will be disbursed will be far as a US dollar-denominated bond some time second Green hybrid, a €700m perpetual
less than the full €86bn that was initially in 2018, according to Reuters. non-call March 2024 at 2.625%. On Thursday
thought necessary.” Tap auctions of existing euro bonds are last week, it was bid at par for a yield of
The timetable for potential benchmark also expected during the second quarter of 2.623%, according to Thomson Reuters data.
transactions is as follows: the weeks starting the year, the treasury said. Akelius is rated BBB stable by S&P and the
April 9, April 23, May 14, May 28 and June Finland’s net borrowing requirement for bonds BB+ (expected). Its CFO, Leiv Synnes,
11. Transactions may be for the ESM or the 2018 is €3.1bn, while redemptions ANNOUNCEDûAûNEWûlNANCIALûPOLICYûINûMID
EFSF. amounted to €15bn. March, saying its rating should be a minimum
In February, Finland sold €3bn in an BBB and striving to achieve BBB+ or higher.
BADEN-WUERTTEMBERG LEANS ON oversubscribed 2034 benchmark bond,
USUAL SUSPECTS taking advantage of investor demand for TOYOTA AUSTRALIA FINDS LUKEWARM
high-quality assets in a turbulent market. EURO WATERS
The FEDERAL STATE OF BADEN-WUERTTEMBERG Finland has an AA+ credit rating from S&P
leant on the usual suspects to get a €500m and Fitch, and Aa1 from Moody’s, all with a TOYOTA FINANCE AUSTRALIAûBECAMEûTHEûlRSTû
no-grow 10-year over the line, though, as stable outlook. antipodean corporation to test the euro
ALL INV-GRADE US CORPORATE BONDS ALL US INVESTMENT GRADE CORPORATE DEBT ALL CORPORATE BONDS IN EUROS
BOOKRUNNERS: 1/1/2018 TO DATE (EXCLUDING SOLE SELF FUNDED DEALS) BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share BOOKRUNNERS: 1/1/2018 TO DATE Managing No of Total Share
bank or group issues US$(m) (%) Managing No of Total Share bank or group issues €(m) (%)
1 BAML 22 3,928.99 9.1 bank or group issues US$(m) (%) 1 BNP Paribas 42 7,889.21 8.9
2 Morgan Stanley 14 3,700.00 8.6 1 JP Morgan 107 33,126.80 12.0 2 SG 34 6,831.33 7.7
3 JP Morgan 22 3,645.83 8.5 2 BAML 99 27,996.60 10.1 3 Goldman Sachs 21 6,429.48 7.2
4 Wells Fargo 22 3,351.64 7.8 3 Citigroup 98 24,810.33 9.0 4 UniCredit 29 6,053.37 6.8
5 Barclays 15 3,279.86 7.6 4 Goldman Sachs 63 23,164.24 8.4 5 Deutsche Bank 34 5,472.72 6.1
6 Citigroup 16 2,561.02 5.9 5 Barclays 54 21,251.22 7.7 6 HSBC 34 4,664.92 5.2
7 Goldman Sachs 10 2,162.98 5.0 6 Wells Fargo 69 18,247.03 6.6 7 Credit Agricole 27 4,552.85 5.1
8 Mizuho 13 1,778.89 4.1 7 Morgan Stanley 72 18,231.74 6.6 8 JP Morgan 25 4,379.71 4.9
9 MUFG 9 1,778.63 4.1 8 Mizuho 44 9,037.09 3.3 9 Barclays 23 3,840.18 4.3
10 TD Securities 7 1,673.66 3.9 9 Credit Suisse 38 8,502.14 3.1 10 BAML 20 3,651.68 4.1
Total 51 43,056.88 10 Deutsche Bank 31 8,456.28 3.1 Total 132 89,052.89
Excluding equity-related debt, ABS/MBS, all foreign issues, global issues Total 237 276,805.78 Excluding equity-related debt. FIGs, ABS/MBS.
and non corporates.
Source: Thomson Reuters SDC code: F6a Source: Thomson Reuters SDC code: F09a Source: Thomson Reuters SDC code: N8
The corporate market had not seen a believes it can enjoy better returns by
sterling deal since a £300m 22-year from SWISS FRANCS holding assets for a longer period.
utility Cadent Finance in mid-March. That The shorter tenors were selected in
came at Gilts plus 135bp but has since SWISS RETURN FOR TRANSURBAN recognition of it being a maiden issue and a
softened to 141bp over. lRSTûFROMûTHEûPRIVATEûEQUITYûSECTOR
Sterling investment-grade corporates TRANSURBAN QUEENSLAND, rated BBB (S&P), has Issuing yen bonds is also a way for KKR to
were 5bp wider against governments and mandated UBS to arrange a Zurich lunch on improve its name recognition. Although it is
2bp wider against asset swaps for the week April 6 for a potential new bond issue. well known to big investors and pension funds
ending March 23, according to iBoxx indices. The Australian toll-road operator, in in Japan, it is less familiar to regional investors.
Equivalent euro spreads were 6.5bp wider which Transurban owns 62.5%, made its “Some regional investors do consider KKR
versus governments and 4bp softer versus Swiss debut in June 2016 with a SFr200m as Kokka Koumuin Kyosai Kumiai
swaps. 0.625% seven-year bond, priced at mid-swaps Rengokai,” Hirano said with a smile,
“There seems to be a different dynamic plus 98bp. referring to the Japanese name of the
now between the euro and sterling market,” Federation of National Public Service
an investor said. “Sterling is usually higher Personnel Mutual Aid Associations.
beta but the CSPP no longer seems to be YEN Hirano believes that selling bonds to
protecting the euro market from volatility.” regional investors will increase KKR’s
Also in sterling, WALES & WEST UTILITIES KKR PLANS TO BECOME REPEAT YEN notoriety and, eventually, expand the
agreed last week to buy back £48m of its ISSUER market for its products.
SUB
CLASSû"ûaMûlXED
TO
mOATINGû Although it plans to keep issuing in yen,
guaranteed bonds due 2036 (callable KKR plans to issue yen-denominated bonds KKR already has ample cash and, as such,
December 2018) in a tender offer. once or twice a year to fund its operations does not have a pre-set target for how much
Approximately £103.5m were validly and enhance its name recognition in Japan, it will raise from yen bonds in future.
tendered. especially among regional investors. However, Hirano did drop some hints. “It
The purpose of the offer, which expired 4HEû53ûPRIVATEûEQUITYûlRMûRAISEDûcBNû WOULDûBEûNICEûIFûWEûCOULDûRAISEûcBNûTOû
on March 26, is to “proactively manage the (US$380m) from debut Global yen bonds in cBNvûHEûSAIDû.ONETHELESSûTHEûCOMPANYû
balance sheet of the offeror’s group”, the early March after pondering such a move for does not want excessive issuance to imperil
company said in a statement. around a year. its credit rating.
“We, as a frequent borrower, want to KKR has been an active player in Japanese
ALL CORPORATE BONDS IN STERLING raise yen funds once or twice a year,” said M&A and private equity, as local
BOOKRUNNERS: 1/1/2018 TO DATE KKR Japan CEO Hirofumi Hirano at a recent conglomerates restructure and spin off non-
Managing No of Total Share roundtable with reporters. core assets. In particular, it has focused on
bank or group issues £(m) (%) Hirano said the frequency of future creating global growth opportunities for
1 HSBC 5 469.11 16.6 issuance would depend on market business units that had been overlooked
2 Lloyds Bank 4 374.49 13.3 CONDITIONSûBUTûHEûSTRESSEDûTHATûTHEûlRSTû within larger groups.
3 Barclays 4 366.47 13.0 trade would not be a one-off. KKR recently acquired the semiconductor
4 MUFG 3 248.53 8.8 For its maiden deal, KKR chose tenors of manufacturing equipment activity of
5 NatWest Markets 3 238.82 8.4 lVEûSEVENûANDûûYEARSûBUTûITûPREFERSûLONGû Hitachi Kokusai Electric and a 60% interest
6 RBC 2 174.49 6.2 tenors for business reasons. in its video and communications business.
7 Morgan Stanley 1 160.00 5.7 “The weighted-average duration of the %ARLIERûLASTûYEARûITûSEALEDûAûcBNû,"/ûOFû
8 Deutsche Bank 1 149.34 5.3 latest trade was 9.1 years,” said KKR Capital Hitachi’s power tools unit, Hitachi Koki, and a
9 BNP Paribas 2 134.05 4.7 Markets Japan head Go Yamashita, pointing cBNûBUYOUTûOFûAUTO
PARTSûMAKERû#ALSONICû
10 Mizuho 2 115.52 4.1 out that this was aligned with the goal of Kansei. KKR is also helping Panasonic
Total 11 2,826.31 raising long-term funds. Healthcare and Pioneer DJ to grow globally.
A private equity fund’s usual holding
Source: Thomson Reuters SDC code: N8a PERIODûISûlVEûTOûSEVENûYEARSûBUTû++2û
NON-CORE CURRENCIES
ALL INTERNATIONAL STERLING BONDS ALL SWISS FRANC BONDS EXCLUDING
EXCLUDING SECURITISATIONS SECURITISATIONS DAIMLER DIVERTS TO DIM SUM
BOOKRUNNERS: 1/1/2018 TO DATE BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share Managing No of Total Share German carmaker DAIMLER (A2/A/A-) has
bank or group issues £(m) (%) bank or group issues SFr(m) (%) raised Rmb1bn (US$159m) from a maiden
1 NatWest Markets 30 4,171.35 12.8 1 Credit Suisse 34 3,486.76 25.5 offering of Dim Sum bonds. The three-year
2 HSBC 28 4,097.69 12.6 2 UBS 31 3,315.18 24.3 notes were priced at par to yield 4.8%,
3 Lloyds Bank 17 3,059.91 9.4 3 Verband Schweizerischer 3 2,221.72 16.3 tighter than guidance of 5.0% area.
4 RBC 20 2,983.56 9.1 4 ZKB 16 1,194.61 8.7 Daimler International Finance is the
5 Barclays 18 2,353.47 7.2 5 Raiffeisen Schweiz 7 875.44 6.4 issuer of the notes and Daimler is the
6 JP Morgan 6 2,226.59 6.8 6 BNP Paribas 8 734.06 5.4 guarantor. HSBC is arranger and manager on
7 BAML 8 2,169.84 6.7 7 Deutsche Bank 6 583.36 4.3 the issue, expected to be rated A2/A/A–.
8 Santander Global 6 1,813.20 5.6 8 Commerzbank 3 204.47 1.5 Daimler has been selling Panda bonds in
9 Nomura 11 1,548.46 4.7 9 Gazprombank 1 187.50 1.4 China since 2014. It last tapped the Panda
10 TD Securities 12 1,480.04 4.5 =9 VTB Capital 1 187.50 1.4 market for Rmb3bn in January with a
Total 75 32,627.65 Total 61 13,656.81 private placement of three-year notes priced
Including preferreds. Excluding equity-related debt. Including preferreds. Excluding equity-related debt. at par to yield 5.60%. (See Top News story for
Source: Thomson Reuters SDC code: K05a Source: Thomson Reuters SDC code: K06b more.)
preference for large deals from liquid leverage than others and that could explain senior to Additional Tier 1 and Tier 2 but
names. why Citizens had a tougher time than usual. junior to preferred senior debt.
And even then these issuers may have to The last deal from Citizens was a Senior non-preferred bonds are being
brace themselves to pricing deals with at least US$1.5bn trade in May 2017. The May 26 adopted across Europe to help lenders
high single digits in new issue concessions. 2022s from that trade were quoted at a G increase their loss-absorbing capacity in the
Bank of America Merrill Lynch, Citigroup, JP spread of 84bp, which was the nearest MOSTûCOST
EFlCIENTûWAY
Morgan and Santander will be the leads on the COMPARABLEûFORûTHEûlVE
YEARûFORûAû 5NI#REDITûWASûTHEûlRSTû)TALIANûBANKûTOûSELLû
Santander deal. concession in the 20bp area after accounting 3.0ûAûõBNûlVE
YEARû"AA"""
""" ûINû
for maturity extension. January this year that drew more than
CITIZENS BANK BRAVES THROUGH One banker, however, argued that it was €4.1bn in orders. It priced at swaps plus
TOUGH MARKET still a fair deal compared with the bank’s 70bp but has since widened to 85bp over.
peers, whose bonds were in the mid 80s to “That set the stage, so UBI would be
CITIZENS BANKSûlVE
YEARûlXEDûANDûmOATERSû 90s area. an obvious candidate to follow,” said a
which raised a combined US$750m, hardly #ITIZENSûPRICEDûTHEû53MûlXED
RATEû banker. “AIB is a slightly different case, but
moved in from IPTs and priced with chunky notes at 110bp over Treasuries from IPTs of ITûSHOWSûTHESEûSUB
)'ûTRADESûAREûDElNITELYû
CONCESSIONSûLASTûWEEKû
ûREmECTINGûCONTINUEDû plus 115bp/120bp. The US$250m FRN came doable.”
tightness in short-term liquidity. at three-month Libor plus 95bp. AIB Group’s debut holdco senior bond, a
Citizens was able to tighten only 5bp- lVE
YEARûRATEDû"A"""""
ûDREWûOVERû
10bp through bookbuild and priced at levels €2.25bn of demand for a €500m print
which had 21bp in concession. The order EUROS despite a challenging market backdrop last
book was a modest US$1.2bn. Thursday.
“The tone is not that great because the MOODY’S ASSIGNS Ba3 RATING TO UBI The supply of SNP debt from Italy is
deals that have come before have not SENIOR NON-PREFERRED expected to be relatively limited. UniCredit
outperformed,” said one syndicate banker. outlined a €6bn SNP target at the end of
h)TûWASûAûRAREûlVE
YEARûTRADEûBYûAûDOMESTICû Moody’s has assigned a provisional Ba3 2017, but Intesa has ruled out any such
lNANCIALûANDûTHEYûDIDûFAIRLYûWELLûINûTHEûENDû rating to senior non-preferred debt from UBI issuance in 2018. UBI’s own needs are also
given the market conditions.” BANCA, potentially the second Italian bank to limited.
In recent weeks, markets have become sell bonds in the format. “Given the relatively small amount of
CHALLENGINGûFORûlNANCIALûISSUERSûAMIDûAû UBI updated its EMTN programme earlier junior senior debt that Moody’s expects
spike in short-term rates. in March to include the asset class, which is TOûBEûISSUEDûATûLEASTûATûlRSTûANDûTHEû
Bankers said issuers that were regular and current limited subordination in the form
looking at size were getting more pricing ALL GLOBAL AND EUROMARKET YEN BONDS of Tier 2 securities and residual equity,
BOOKRUNNERS: 1/1/2018 TO DATE the LGF analysis indicates likely high loss-
ALL SAMURAI BONDS Managing No of Total Share given-failure,” the ratings agency wrote in
BOOKRUNNERS: 1/1/2018 TO DATE bank or group issues ¥(m) (%) a note.
Managing No of Total Share 1 Nomura 8 46,566.67 28.2 UBI has only issued covered debt in the
bank or group issues ¥(m) (%) 2 Mizuho 7 38,466.69 23.3 euro market so far this year. It sold a €750m
1 Mizuho 9 39,345.00 18.7 3 Sumitomo Mitsui Finl 4 31,816.69 19.3 October 2022 senior (Baa3/BBB-/BBB-/BBBH)
=1 Mitsubishi UFJ MS 9 39,345.00 18.7 4 Daiwa Securities 6 18,316.67 11.1 INû/CTOBERûLASTûYEARûITSûlRSTûFORAYûINûTHEû
3 Daiwa Securities 7 38,220.00 18.1 5 Barclays 4 11,650.00 7.1 institutional senior unsecured market after
4 Sumitomo Mitsui Finl 4 31,125.00 14.8 6 Chugoku Bank 2 6,666.67 4.0 three and a half years away.
5 Nomura 6 23,220.00 11.0 =6 Mitsubishi UFJ MS 2 6,666.67 4.0 That bond is bid at swaps plus 62.6bp,
=5 Natixis 6 23,220.00 11.0 8 Dev Bank of Japan 1 5,000.00 3.0 virtually unchanged from its 62bp reoffer
7 BNP Paribas 3 16,125.00 7.7 Total 10 165,150.05 level. It has a €500m 4.45% 2027 NC2022
Total 10 210,600.00 Excluding equity-related debt. Including preferreds. Tier 2 bond (Ba3/BB/BB+) trading at a yield of
Excluding equity-related debt. Source: Thomson Reuters SDC code: K10 3.47%.
Source: Thomson Reuters SDC code: K11
ALL FINANCIAL INSTITUTION BONDS IN EUROS ALL SUBORDINATED FINANCIAL INSTITUTION
ALL INTERNATIONAL YEN BONDS BOOKRUNNERS: 1/1/2018 TO DATE BONDS (ALL CURRENCIES)
BOOKRUNNERS: 1/1/2018 TO DATE Managing No of Total Share BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share bank or group issues €(m) (%) Managing No of Total Share
bank or group issues ¥(m) (%) 1 BNP Paribas 25 6,384.60 9.4 bank or group issues US$(m) (%)
1 Mizuho 16 77,811.69 20.7 2 Deutsche Bank 21 6,339.63 9.3 1 BNP Paribas 10 2,534.99 9.4
2 Nomura 14 69,786.67 18.6 3 SG 16 5,700.19 8.4 2 SG 4 2,219.88 8.3
3 Sumitomo Mitsui Finl 8 62,941.69 16.8 4 UBS 15 5,428.34 8.0 3 BAML 8 1,669.00 6.2
4 Daiwa Securities 13 56,536.67 15.0 5 Natixis 7 4,591.85 6.7 4 Barclays 8 1,641.25 6.1
5 Mitsubishi UFJ MS 11 46,011.67 12.2 6 Credit Agricole 7 3,710.32 5.4 5 UBS 7 1,474.61 5.5
6 Natixis 6 23,220.00 6.2 7 HSBC 19 2,916.22 4.3 6 Credit Agricole 3 1,429.96 5.3
7 BNP Paribas 3 16,125.00 4.3 8 Barclays 13 2,673.32 3.9 7 Lloyds Bank 3 1,377.19 5.1
8 Barclays 4 11,650.00 3.1 9 Lloyds Bank 4 2,486.61 3.7 8 HSBC 6 1,336.77 5.0
9 Chugoku Bank 2 6,666.67 1.8 10 NatWest Markets 9 2,418.28 3.5 9 Goldman Sachs 6 1,336.23 5.0
10 Dev Bank of Japan 1 5,000.00 1.3 Total 92 68,125.78 10 JP Morgan 6 1,275.97 4.8
Total 20 375,750.05 Including banks, insurance companies and finance companies. Excluding Total 32 26,830.28
equity-related and covered bonds. Excluding publicly owned institutions.
Including all Euro, foreign and global issues. Excluding equity-related debt.
Source: Thomson Reuters SDC code: K12 Source: Thomson Reuters SDC code: N11 Source: Thomson Reuters SDC code: J3a
The attractive headline coupon for IBERCAJA’s prices, but was bid nearly back at reoffer by late a lot of DTAs [deferred tax assets], so the quality
€350m no-grow Additional Tier 1 issue helped morning. is not great,” he said. “Other names have more
drum up more than €850m in orders, but Leads said the issue had weakened in line positive catalysts in the medium term.”
the bonds slipped below par after terms were with the market since its pricing on Tuesday, and The bank is on the road to an IPO, though that
squeezed well inside IPTs to 7%. paid just an eighth in new issue concession – has been pushed back until 2020.
The Spanish bank had completed a roadshow considerably less than the roughly 50bp paid by Fitch describes Ibercaja’s capitalisation
for the perpetual non-call five-year (B–/B by much larger banks Santander and CaixaBank for as adequate. Its fully loaded CET1 ratio had
S&P/Fitch) the previous week. The size was AT1s in recent weeks. improved to 11.04% by year-end 2017, from
capped, since Ibercaja – Spain’s ninth largest Those deals paid up partly due to renewed 10.17% at end-2016, but remains lower than that
bank by assets – has limited needs in this investor focus on back-end spreads – a major of most peers.
format. determinant of the coupon level should an AT1 Others however liked the bank’s franchise,
Final books were around €850m, having deal not be called. The back-end spread was less particularly given its presence in some of Spain’s
peaked in excess of €950m (pre-reconciliation). of a focus here, however, because Ibercaja’s cost stronger regions. It has also reduced non-
Marketing started at low to mid-7s before of funding is comparatively so much higher. performing assets by 28% since 2014.
guidance at 7.125% area. The bond issue is among the highest yielding “The coupon looks decent but, of course,
“I’m surprised it got done at 7%, in some in the euro AT1 universe. A Permanent TSB it’s a smaller bank with low return on equity
ways,” said a banker away from the deal. €125m 8.625% NC2021 was around 9.25% last and leverage ratio,” said Michael Huenseler,
“I’d heard from some investors that they were Tuesday, according to Thomson Reuters data, managing director at Assenagon Asset
trying to go through 7% and, given investors’ while a Caixa Geral de Depositos €500m 10.75% Management.
unwillingness to follow deals tighter, I’m surprised NC2022 was at 6.45%. “On the other hand, it has an attractive
they hung around for a 7% trade, actually. The business mix and potential for cost savings, also
market is weaker and they squeezed the deal, so STILL TIGHT being located in a country we’re positive on.”
that is set up to go wider, I’m afraid.” Even so, one investor said the level was a little tight. Barclays, BBVA, JP Morgan and UBS were joint
The bonds opened half a point below par at “It’s a small bank in Spain – only number nine lead managers.
last Thursday’s open, according to Tradeweb – and its capital is still relatively weak – there is Alice Gledhill
sidelines of the conference, does not see the 30%-35% of an issue compared with the 50% A direct competitor to Whole Foods, The
central bank pulling back until the end of or 60% share it used to buy. Fresh Market has been struggling to turn its
the year. Weekly ECB buying has also fallen business around since the Apollo leveraged
h3YNDICATESûAREûDElNITELYûSTEPPINGûBACKû dramatically. Early in the quarter, covered buyout, causing the value of its debt to
from new issuance and investors remain purchases settled in the week ending slump.
cautious ahead of spread widening,” he said. January 19, for instance, totalled nearly The company’s 9.75% 2023 bonds have
Ahead of the ECB’s departure, 88% of €2.5bn according to ABN AMRO analysts. been trading at a cash price below 60 cents
market participants at the IMN conference In contrast, the week ending March 23 on the dollar in recent days, giving them a
think spreads will be wider than their aggregated to only €176m, a historical low yield of close to 25%, according to
current levels by year-end. But there were for a week, with €3.35bn in eligible eurozone MarketAxess data.
doubts over the likely extent of the move. primary settlements, said ING analysts. Supermarkets and drug stores make up
“We really didn’t see much spread just 1% of the overall US high-yield market,
widening when the US just stopped bond where the trailing 12-month default rate
buying,” said Steve Williams, head portfolio currently stands at a much lower 2.6%, Fitch
MANAGERûFORûCOREûlXEDûINCOMEûATû.IKKOû said.
Asset Management. HIGH-YIELD
“We’ve only seen spread widening of
about 10bp to 15bp recently on the portfolio EUROPE/MIDDLE EAST/
reduction programme.” UNITED STATES AFRICA
While the market is waking up to the
implications of the central bank wind-down SUPERMARKET DEFAULTS TO REACH 16% TUI WAITING FOR BETTER WINDOW
there are also questions around IN 2018: FITCH
reinvestments. Almost two weeks after holding an investor
Schultz reckoned portfolio reduction The default rate in the US supermarket and call, TUI has yet to emerge, with leads saying
would start in 2021. drug store sector is on track to reach 16% the tourism group is waiting for a “decent
“The big question is where the ECB will THISûYEARûFOLLOWINGûTHEûBANKRUPTCYûlLINGûOFû market” before selling its seven-year trade.
reinvest - will it be in the covered or the public SOUTHEASTERN GROCERS, according to ratings A banker away reckoned Tui would
sector market?” he said. “If it’s the former, agency Fitch. struggle to get a deal done at the 1.50%-1.75%
then the covered market should stabilise.” Stiff competition has pressured margins level he heard was being targeted. A lead
Redemptions in the second quarter will for a number of supermarket chains, while
be sizable at €28.8bn with June accounting Amazon’s recent acquisition of Whole Foods ALL EUROPEAN HIGH-YIELD ISSUERS
for half of that amount, according to ABN Market has given new urgency to the need 1/1/2018 TO DATE
AMRO analysts. for grocers to expand their online presence. Managing No of Total Share
The other question, according to Michael Southeastern Grocers, the parent bank or group issues US$(m) (%)
McCormick, director at Credit Suisse, is COMPANYûOFû"I
,OûANDû7INN
$IXIEûlLEDûFORû 1 JP Morgan 17 1,767.79 6.8
whether the ECB will reinvest using the bankruptcy protection on Tuesday to cut 2 BNP Paribas 15 1,696.38 6.5
primary or secondary market. some US$500m from its debt load. 3 Credit Suisse 13 1,633.71 6.3
“If you look at some of the euro books and 4HEûlLINGûWHICHûCOMESûJUSTûOVERûAûMONTHû 4 Deutsche Bank 14 1,522.79 5.9
take out the ECB order, you don’t have a after supermarket chain TOPS took a similar 5 Goldman Sachs 13 1,522.25 5.9
cleared trade, unfortunately,” he said. “The step, brought the default rate for the sector 6 Morgan Stanley 7 1,379.52 5.3
secondary market is always going to take its to 12% over the past year, according to Fitch. 7 ING 10 1,331.43 5.1
cue from the primary market.” The ratings agency, however, said that 8 HSBC 10 1,089.27 4.2
The ECB is by far the biggest holder of rate was likely increase to 16% by the end of 9 BAML 7 1,032.12 4.0
eurozone covereds, having purchased 2018 as it expected THE FRESH MARKET (a 10 Natixis 9 1,006.06 3.9
almost €250bn of paper under CBPP3. premium grocery chain Apollo Global Total 44 25,946.65
However there are signs it is scaling back Management took private in 2016) also to Excluding equity-related debt.
primary orders, which now average around default on its debt. Source: Thomson Reuters SDC code: B06c
ALL US$ DENOMINATED HIGH-YIELD BONDS ALL NON-DOLLAR DENOMINATED HIGH-YIELD BONDS ALL ASIAN HIGH-YIELD ISSUERS
BOOKRUNNERS – 1/1/2018 TO DATE 1/1/2018 TO DATE 1/1/2018 TO DATE
Managing No of Total Share Managing No of Total Share Managing No of Total Share
bank or group issues US$(m) (%) bank or group issues €(m) (%) bank or group issues US$(m) (%)
1 JP Morgan 46 6,933.08 11.1 1 BNP Paribas 13 1,287.64 7.4 1 Bank of China 7 720.15 6.8
2 Credit Suisse 38 5,115.06 8.2 2 JP Morgan 14 1,226.51 7.0 2 Citic 8 695.18 6.6
3 Barclays 31 4,283.48 6.9 3 Deutsche Bank 12 1,114.08 6.4 3 Credit Suisse 8 595.01 5.6
4 Wells Fargo 31 4,174.66 6.7 4 Credit Suisse 11 1,098.37 6.3 4 Haitong Securities 11 435.19 4.1
5 BAML 40 4,093.96 6.6 5 Goldman Sachs 12 1,085.91 6.2 5 Citigroup 5 423.92 4.0
6 Deutsche Bank 32 4,013.06 6.4 6 Morgan Stanley 6 997.97 5.7 6 Morgan Stanley 6 392.20 3.7
7 Citigroup 37 3,914.04 6.3 7 HSBC 10 888.37 5.1 7 BAML 5 377.50 3.6
8 Goldman Sachs 34 3,894.81 6.3 8 Natixis 7 722.39 4.1 8 Guotai Junan Securities 10 360.54 3.4
9 Morgan Stanley 27 3,207.72 5.2 9 ING 6 652.07 3.7 9 Deutsche Bank 5 332.33 3.2
10 RBC 19 2,028.39 3.3 10 UniCredit 6 631.06 3.6 10 VTB Capital 4 324.99 3.1
Total 113 62,254.07 Total 39 17,414.70 Total 27 10,548.43
Including US domestics, Euro, foreign, globals. Excluding equity-related debt. Excluding equity-related debt. Excluding equity-related debt.
Source: Thomson Reuters SDC code: B5 Source: Thomson Reuters SDC code: B6 Source: Thomson Reuters SDC code: B06d
Australia’s expanding high-yield and unrated “We look to assist mid-market companies to job search provider SEEK provided most comfort
bond market received a reality check when pursue their growth strategies by providing a among such issues as it had four lead managers
MACKAY SUGAR effectively defaulted on its A$50m financing option, beyond local bank lending and and attracted strong support from local fund
(US$38.5m) 5.25% April 5 2018 note, having the US private placement market,” said John managers.
sought and secured a 12-month extension from Ricciotti, head of debt capital markets at FIIG Bayley also noted the benefits of the retail
bondholders. Securities. market, where ASX-listed bonds provide greater
The distressed debt exchange, which Around two-thirds of these bonds are sold to liquidity and clarity to investors with continuous
represents an event of default according to FIIG’s 7,000-strong wholesale client base, the disclosure requirements, including half-yearly
ratings agencies’ definitions, underlines the majority of which are self-managed superannuation reports.
difficulties that individual investors face in funds, with the rest going to institutional investors Healthcare and homecare provider Australian
assessing the credit risks of unlisted, unrated and high-net-worth individuals. Unity printed the first such bond with a A$250m
credits, said Phil Bayley, principal at ADCM Growth in the unrated bond market has five-year note sale in November 2015. Real-
Services, an independent DCM consultancy. been fuelled in part by reduced bank lending estate developer Peet issued a A$100m five-year
“Mackay Sugar is a farmer-owned cooperative to sectors such as property, resources and paper in June 2016, while Qube Holdings sold
and high-net-worth individuals will have a hard non-bank financials, while the buyside has A$300m of subordinated seven-year retail notes
time monitoring the company’s financial health grown as investors seek to diversify their fixed- in September 2016.
because it is not ASX-listed and so not obliged to income portfolios into higher-yielding corporate The last ASX-listed high-yield trade was
release continuous disclosure. The fact the bond instruments. residential developer Villa World, which sold a
has only one sponsoring broker and thus only one A$50m five-year floater in April 2017.
price point is another negative,” Bayley said. WHOLESALE GROWTH The Australian local market’s first default
With the unrated bond plunging to a cash The first high-yield bond sold in Australia’s since 2001 serves as a timely reminder of the
price of around 50 in the secondary market, institutional wholesale market was issued by risks associated with higher returns, but one
investors clearly doubt they will be repaid at face Qantas Airways, which raised A$750m from bad apple is not expected to spoil an asset
value next year, despite the company’s plans Deutsche Bank-arranged seven-year and eight- class which has grown from nothing six years
to raise cash from asset sales and third-party year issues in 2014. These came just after the ago to become a significant alternative to the
investment. airline suffered downgrades to junk status, which investment-grade market. Indeed it is a lack of
Bondholders rank behind the company’s were subsequently reversed. supply rather than a lack of demand which has
bankers, National Australia Bank and Rabobank, National Australia Bank was the first of been holding the market back.
which also agreed to extend their secured credit the country’s four major lenders to arrange a High yield is dwarfed by Australia’s bank-
lines by 12 months, to March 2 2019, and will wholesale market deal the same year, bringing dominated A$1trn-plus IG arena, although within
be paid off first if Mackay’s restructuring plan is the high-yield bond market into the mainstream. the corporate space it now makes up a sizeable
successful. NAB has led deals on a sole or joint basis for share of overall issuance, with more than A$1bn
Mackay Sugar’s bond, issued in April 2013, NEXTDC, Centuria Capital, SEEK and others. raised in 2017, in all markets, versus A$12.6bn in
was the second high-yield offering arranged ADCM’s Bayley points out that unrated the Triple B and higher-rated space, excluding
by FIIG Securities, Australia’s largest specialist sole-led wholesale high-yield market issues Kangaroos.
fixed-income broker, which opened the domestic share some of the weaknesses of single-broker “What Mackay Sugar really shows is the
high-yield market in 2012. arranged deals, although the former do benefit importance of a portfolio approach to high-yield
FIIG has now helped sell more than A$1.8bn from the greater involvement of asset managers, bond investments whereby small amounts are
of bonds across 45 transactions, typically at which can be relied upon to do a lot of credit spread over many issues to lessen the pain from
sizes of A$40m–$50m with callable five-year work for their bond purchases. company-specific problems,” a DCM manager
structures. To date over A$400m of bonds have He suggested that the A$175m five-year said.
matured or been repaid. floating-rate note issued in April 2017 by online John Weavers
and investor, however, said last week there initially sought, after removing a 10-year Tui reported debt of €5.68bn and a
were no whispers out on the deal. from its offering, and priced the remaining LEVERAGEûRATIOûOFûXûFORûTHEûûlNANCIALû
Most borrowers took a step back ahead of three tranches wider than price talk. year and is targeting 3x-2.25x for FY2018.
the Easter holiday, with the market still soft Tui, rated Ba2 (positive) by Moody’s and
after some deals suffered tricky execution or BB (stable) by S&P, last tapped the market in ORANO PLANS NON-DEAL ROADSHOW
poor secondary performance. /CTOBERûûSELLINGûAûõMûlVE
YEARûATû
Although LKQ managed to raise €1bn the ûTOûRElNANCEûAûõMûûûNOTE ORANO will hold a non-deal roadshow in
week before last, the two tranches came at the The proceeds from the new offering will London on April 11 via Santander. The
mid-point of talk, in both cases unchanged be used for general corporate purposes. Tui rebranded New Areva will present its FY
from IPTs. The €750m 8NC3 came at 3.625% said in a recent presentation that a changed 2017 results and outlook, according to last
and the €250m 10NC5 at 4.125%, both at par. MIXûOFûDEBTûlNANCINGûFORûAIRCRAFTûRE
mEETINGû Wednesday’s announcement, and is not
The bonds held up last week, though, the INûFAVOURûOFûBONDûISSUANCEûANDûlNANCEû planning a transaction “in the short term”.
former bid at 100.44 and the latter at 100.25. LEASESûWOULDûNOTûIMPACTûCASHmOWûTOû Areva transferred its bond debt to Orano
Meanwhile, COTY cut the size of its bond shareholders and have “no material impact” in late 2016. The company has net debt of
offering to US$1.5bn-equivalent from US$2bn on its leverage ratio. close to €3bn, CEO Philippe Knoche said in a
January presentation linked to the Bankers consider £500m as benchmark 13.1 years. The LTVs are low too, with a
company’s rebranding. size for prime RMBS and master trust issuers current LTV of 70% and a Moody’s indexed
Areva held a non-deal roadshow via JP have been able to limit their reliance on LTV of 49%.
Morgan last March. It last issued in March sterling buyers by issuing dollars too. Away A low credit enhancement requirement of
2014, selling a €750m nine-year, and does from the master trusts, PMF 2018-1, the 13% also allows a larger proportion of Triple
not have any upcoming maturities until largest of the two buy-to-let deals to price A bonds than in other non-conforming
November 2019, according to Eikon data. this year, sold £388m. deals. The seniors account for 88.5% of the
Orano, rated BB positive by S&P, is owned Joint leads on RMAC No.1, Bank of America capital structure, compared with 71% for the
by the French state (45.2%), the CEA (Atomic Merrill Lynch and Natixis, indicated a £400m Stanlington deal and 75% for Kensington’s
Energy Commission) (4.8%), Areva SA (40%), size during marketing and said £500m was a RMS 30, which was priced in July last year.
Japan Nuclear Fuel Ltd (5%) and Mitsubishi possibility, before pricing for the lower However, the mortgages were originated
Heavy Industries (5%). The latter two amount. to often loose pre-crisis standards, and
completed their total €500m investment last The underlying mortgages are legacy non- arrears numbers are high: 24% of the pool is
month. conforming loans originated before 2007 by in arrears, with 8% over 90 days. Borrowers
GMAC-RFC, which was bought by Fortress in with CCJs make up 18.4%, interest-only
2010 and renamed Paratus. loans make up 77%, and 43% have been
The portfolio had formed the collateral restructured.
for six earlier RMBS deals off the RMAC The capital structure comprises a 3.74-
STRUCTURED FINANCE shelf, which had not been called because the year Triple A tranche and three
pre-crisis margins their bonds were paying investment-grade mezzanine pieces at 5.21
were inside current market levels. years, as well as two Class Xs and a pair of
EMEA MBS However, when real estate investor unrated and retained Class Z notes.
Clifden made the RMAC deals part of a At pricing on Tuesday the deal’s Triple As
PARATUS PRICES PARTIAL RMAC REFI hostile tender offer, seeking to take control were sized at £351.7m. IPTs the previous
of the SPVs, Paratus’s response was quickly Tuesday had been high 60s to 70bp over
PARATUS AMCûPRICEDûTHEûDELAYEDûRElNANCINGû to call the deals and they were redeemed on ,IBORûWHICHûWASûRElNEDûTOûBPûAREAûONû
of non-conforming mortgages from its March 12. -ONDAYûBEFOREûBPûlNALûPRICING
RMAC shelf on Tuesday after settling for a A source with direct knowledge of the A clear comparable was Kensington’s RMS
smaller deal size done at tight levels. MATTERûSAIDû0ARATUSûHADûlRSTûCONSIDEREDû 30, which was heard bid in secondary as
“From the conversations on the roadshow calling the RMAC deals and securitising wide as 67bp, suggesting investors were
it seemed they intended to place the whole them afresh after getting tighter than being offered very little in the way of new-
transaction if they could,” said one investor. expected pricing in its February 2017 issue premium.
“It looks like they didn’t want to widen securitisation of other legacy non- Classes B, C and D were heavily
Triple A spreads to the level required to do conforming mortgages, Stanlington No.1. oversubscribed and all came inside IPTs and
so.” But EU proposals in July to outlaw at the tight end of guidance.
Pricing had been held over from the end SECURITISATIONûOFûSELF
CERTIlEDûMORTGAGESû The £11.9m Aa2/AA+ Class B came at
of the previous week and those Triple As which make up the majority of the RMAC three-month Libor plus 95bp after 100-
appeared to be the sticking point. They mortgages, halted those plans. The EU 110bp IPTs. The £11.9m A2/AA- Class C came
ended a modest 1.2 times subscribed at the ENDEDûUPûRULINGûTHATûLEGACYûSELF
CERTIlEDû at three-month Libor plus 130bp after 140-
lNALûDEALûSIZEûOFûaMûINûCONTRASTûTOûTHEû mortgages could be securitised after all, and 150bp IPTs; and the £8m Baa2/A Class D
mezzanine tranches, which were all very shortly afterwards Clifden began its assault came at three-month Libor plus 160bp after
well covered. on the deals. 180-190bp IPTs. Subscription levels on the
Paratus had a £650m portfolio to The RMAC mortgages themselves have mezz were 3.7x, 5.9x and 4.3x.
RElNANCEûWHICHûATûFULLûSIZEûWOULDûHAVEû clear strengths and weaknesses compared The two Class X notes, rated Ca/CCC and
made the new issue, RMAC NO.1, the largest with newly originated non-prime loans. shown as “call desk”, were placed at 290bp
sterling RMBS sale this year. They are of course very well seasoned, at and 400bp.
ALL EUROPEAN ISSUERS GLOBAL SECURITISATIONS IN STERLING ALL INTL ISSUERS (EXCLUDING SELF-FUNDED)
BOOKRUNNERS: 1/1/2018 TO DATE BOOKRUNNERS: 1/1/2018 TO DATE BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share Managing No of Total Share Managing No of Total Share
bank or group issues US$(m) (%) bank or group issues £(m) (%) bank or group issues US$(m) (%)
1 SG 4 3,030.38 12.9 1 MUFG 1 1,006.20 19.2 1 JP Morgan 31 7,933.79 10.2
2 BAML 6 1,968.42 8.4 2 Lloyds Bank 8 817.76 15.6 2 Wells Fargo 25 7,461.88 9.6
3 Lloyds Bank 8 1,658.33 7.1 3 Citigroup 4 668.78 12.7 3 BAML 25 7,000.09 9.0
4 BNP Paribas 7 1,432.50 6.1 4 BNP Paribas 5 581.55 11.1 4 Citigroup 26 5,144.52 6.6
5 MUFG 1 1,398.52 5.9 5 BAML 5 482.85 9.2 5 Credit Suisse 18 4,552.77 5.9
6 Cooperatieve Rabobank 1 1,309.36 5.6 6 HSBC 3 374.33 7.1 6 Goldman Sachs 11 4,221.06 5.4
7 Credit Agricole 3 1,196.56 5.1 7 RBC 3 227.10 4.3 7 SG 8 4,213.22 5.4
8 Citigroup 4 1,122.43 4.8 8 Natixis 2 214.10 4.1 8 Barclays 16 3,952.77 5.1
9 UniCredit 4 1,036.61 4.4 9 Barclays 2 197.50 3.8 9 Deutsche Bank 19 3,818.58 4.9
10 Commerzbank 1 946.60 4.0 10 JP Morgan 1 175.00 3.3 10 RBC 13 3,014.83 3.9
Total 30 23,508.41 Total 14 5,250.28 Total 117 77,567.76
Includes securitisations, credit-linked notes (Euro, foreign, global and Including Euro, foreign, global and domestics, excluding CDOs. Includes securitisations, PFI bonds and credit-linked notes. Excludes US
domestics) and excludes CDOs. global ABS/MBS, CDOs and self funded issues.
Source: Thomson Reuters SDC code: B16n Source: Thomson Reuters SDC code: B16i Source: Thomson Reuters SDC code: J10d
CLIFDEN EXTENDS RMACS DEADLINE the WA remaining term is 40 months. The Unemployment is low and consumer
AGAIN, OUTLINES PLANS new/used split is 78%/22% and the private/ leverage isn’t off the charts,” Brown told IFR.
commercial split is 80%/20%. “So when you see value, you have to get
CLIFDEN has again extended the early tender The originator last came to market with involved.”
deadline for the RMACS series of non- Swiss Car ABS 2016-2 in April 2016. AMAG’s Most consumer ABS is short-dated, Triple A
conforming RMBS that formed part of its main business is the importing of VW group rated paper. As of quarter-end, three-year
controversial tender offer announced in vehicles and marketing them in Switzerland lXED
RATEû4RIPLEû!ûPRIMEûAUTOûANDûCREDIT
CARDû
January. through a dealer network. paper was only about 10bp wide of its 12-
That offer also included the RMAC series month tights, according to JP Morgan data.
of deals but those have since been called and By contrast, the average investment-grade
RElNANCEDûBYûTHEûBONDSûSERVICERûANDû EMEA CLO corporate bond spread has widened 18bp
administrator, Paratus. The RMACS series is since January, according to IFR data.
not yet callable. BLUEMOUNTAIN EUR CLO 2016-1 REFI But the effect of the repatriation of cash
If enough noteholders tender, the real GETS RATING by US companies on US corporate bond
estate investor said it intends to introduce supply could spill over into structured
an additional call option into the deals’ !ûRElNANCINGûOFû%UROPEANûLEVERAGEDûLOANû products.
terms, exercisable by itself or the servicer. It CLO BLUEMOUNTAIN EUR CLO 2016-1 received The 10 largest companies with foreign
said it could compensate the holder of the provisional ratings from Moody’s last week. earnings held around US$647bn of
existing call rights. The deal is managed by BLUEMOUNTAIN FUJI marketable securities as of the second half
The initial tender offer set the RMACS MANAGEMENT. of 2017. While US corporate bonds make up
early tender deadline for January 26. Earlier Moody’s said the Class X Triple As will pay the biggest US$288bn swathe of total
this month it was extended to March 23 and 30bp over three-month Euribor and the company holdings, structured products
the early tender premiums were increased Class A Triple As 79bp. The Double As will accounted for only US$54bn of their
so that when added to the purchase prices pay 115bp, the Single As 160bp, the Triple investments.
they gave a combined price of par. Bs 245bp, the Double Bs 438bp and the The ABS market could easily shrug off a
The early tender deadline has now been Single Bs 620bp. pause in buying by the treasury departments
extended to April 6. There is a four-year reinvestment period. of big corporations. But the pressure they
The premiums have been changed too. JP Morgan is arranger. can exert in the corporate bond market
The combined price for noteholders who would likely push spreads wider in that
tender after March 23 but before April 6 will sector - and ABS nearly always follows
be 101.5%. US ABS corporates wider at some point down the
For those noteholders that have already line.
tendered, Clifden said it will increase the ABS INVESTORS READY FOR Q2 “It’s reasonable to think those
combined price from par to 102%. VOLATILITY [companies] won’t be active in either of
those markets,” Christopher Creed, co-head
Investors in bonds backed by consumer debt of the globalised securitised investment
EMEA ABS are gearing up for more volatility in the team at Goldman Sachs Asset Management,
second quarter, but could be ready to snap said of large corporations.
AMAG LEASING SELLS SWISS AUTO ABS up asset-backed securities on the cheap. But buying opportunities would also
Bonds backed by car loans, student debt, hinge on how spreads hold up when
Swiss car leasing group AMAG LEASING priced credit cards and related consumer credit comparing the different segments of credit.
auto ABS SWISS CAR ABS 2018-1 on Tuesday, have been fairly immune to the gyrations “The key drivers for spreads are probably
selling a SFr275m Triple A (Fitch only) bond seen so far this year in stocks and corporate less of the technicals - who are the buyers
via Credit Suisse. bonds. and if [some] are gone - and more of what is
The notes came at mid-swaps plus 45.3bp, But with rates on the rise - and a steady the relative value between the two,” Creed
with an issue price of par and a 0.12% stream of headline risk emanating from said.
coupon. They are structured as three-year Washington - few expect the relative calm Wells Fargo also pointed to uncertainty in
soft bullets. IPTs were for a 0.10%/0.15% that has sustained the ABS market to last Washington and escalating trade tensions as
yield. much longer. other reasons for its forecast for more
The portfolio has a three-year revolving Some level of volatility should be expected, volatility in the second quarter.
period. Residual value is securitised and can said Chris Brown, co-portfolio manager of the “Concerns regarding a global trade war
make up a maximum 50% of the portfolio. Car T. Rowe Price Total Return Fund, who noted could send volatility higher,” the bank’s
dealers are supposed to pay RV to the issuer. that an unusually placid 2017 left investors analysts wrote in their outlook for the
There are 12,407 loans in the portfolio with few opportunities to pick up bargains. quarter.
with an average outstanding balance of “So in a way, some volatility is healthy. “In addition, the United States is entering
SFr27,000. Seasoning is seven months and Fundamentally things are still quite strong. into its midterm election cycle. [But] we
continue to believe that spread widening in Collateral: Credit cards. increase the number of transactions that we
the structured products market is likely Largest tranche: Class A US$600m, with will see this year and beyond,” said Deborah
driven by factors outside of our market.” 2.94-year WAL; priced at interpolated swaps &ESTAûAûPARTNERûATûLAWûlRMû-ILBANKû4WEEDû
Many ABS issuers need to issue bonds on a plus 35bp versus guidance at interpolated Hadley & McCloy.
regular basis to offset ongoing loan originations. swaps plus 35bp area. CLOs are the biggest buyers of leveraged
That often means quarterly, and many are loans and the passing of Monday’s midnight
expected to continue selling new bonds even if NSLT 2018-1 deadline in the Appeals Court is a key part of
the market gets somewhat choppy. NELNET priced a US$473.75m 144A student the industry’s push to roll back the
“We would just motor on as long as there loan ABS transaction called NELNET STUDENT regulation.
isn’t anything that knocks the market off LOAN TRUST 2018-1. BMO structured the deal and The Loan Syndications and Trading
the rails,” one syndicate head told IFR. “But was a lead manager with Goldman Sachs and Association (LSTA), the trade group for the
IFûYOUûHAVEûSOMEûmEXIBILITYû;WEûSAY=ûDONTûBEû RBC. US$980bn US loan market, sued the Fed and
wedded to just going. Be a little patient.” Collateral: Pool consists of both SEC in 2014, saying the rules were “arbitrary,
rehabilitated student loans (50%) and non- capricious” and “an abuse of discretion”.
US ABS DEAL PRICINGS rehabilitated student loans (49%), according “We believe that the DC Circuit Court’s
to Moody’s pre-sale. decision was correct so we are pleased that
AMERICAN TOWER TRUST Largest tranche: Class A2 US$375.75m, the government chose not to appeal,” Elliot
AMERICAN TOWER priced a US$500m secured with 7.88-year WAL, rated Aaa/AA+; priced Ganz, general counsel at the LSTA, said in an
wireless tower transaction, called AMERICAN at one-month Libor plus 76bp. email.
TOWER TRUST I, SERIES 2018-1. The deal comprised Direct comp: NLST 2017-3 (7/12/17) Class A Fed spokesperson and an SEC
ONEûSERIESûOFû
YEARû4RIPLE
!ûRATEDûlXEDû A US$539.4m, with 8.07-year WAL, rated spokesperson declined to comment.
rate securities. Barclays structured the deal Aaa/AA+, priced at one-month Libor plus By April 2 the Appeals Court will give a
and was a joint bookrunner with Citigroup, 85bp. mandate for the risk-retention rule for CLOs
JP Morgan, Morgan Stanley and MUFG. to be vacated, allowing managers of those
#OLLATERALû)SSUANCEûOFûCERTIlCATESûBACKEDû funds to legally issue deals without holding
by mortgages representing more than 88% US CDO retention.
of the annualised run rate (ARR) net The CLO market still has one hurdle to
CASHmOWû.#& ûANDûGUARANTEEDûBYûTHEûDIRECTû REGULATORS DECLINE TO CHALLENGE pass, however, as the US government has
parent of the borrowers. Those guarantees CLO RETENTION EXEMPTION until May 10 to ask the Supreme Court to
are secured by a pledge and hear the case, Ganz said. If regulators do not
lRST
PRIORITY
PERFECTEDûSECURITYûINTERESTûINû Issuance of CLO funds could surge after the appeal to the Supreme Court by then, the
100% of the equity interest of the borrowers Federal Reserve and Securities and RULINGûWILLûBEûlNALû-ANAGERSûCANûCONTINUEû
(which own or lease 5,116 wireless Exchange Commission decided not to to issue CLOs without retention in that time.
communication sites) and of the direct appeal a February court ruling that
parent, according to a Fitch pre-sale. exempted the deals from Dodd-Frank ‘skin HEALTHY ISSUANCE
Largest and only tranche: US$500m, with in the game’ rules. Despite the uncertainty of an appeal,
10-year maturity, rated Triple A; priced at Regulators’ decision not to seek a review issuance has been brisk this year at about
Treasuries plus 90bp versus guidance at of the retention rules, which require US$28bn in 2018 through March 23,
Treasuries plus 100bp area. managers to hold 5% of their funds’ risk, according to Thomson Reuters LPC
could boost CLO issuance by managers that Collateral data. Several managers have
EVERGREEN CREDIT CARD lacked the capital to comply. It could also issued CLOs that are not risk-retention
TORONTO-DOMINION BANK priced an upsized cut borrowing costs for companies that compliant, but included language to
US$600m (increased from US$400m) credit depend on the US$511bn US CLO market for increase the fund to buy retention if the rule
card ABS transaction, called EVGRN 2018-1. TD lNANCING still stood at closing.
Securities, JP Morgan and Citigroup were joint The ruling could be transformational for “The obvious conclusion is the ruling
leads. the CLO market and will “only further should help the CLO market grow, but we
GLOBAL STRUCTURED FINANCE IN US$ US ASSET-BACKED SECURITIES STRUCTURED FINANCE – ALL INTL ISSUERS
BOOKRUNNERS: 1/1/2018 TO DATE BOOKRUNNERS: 1/1/2018 TO DATE BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share Managing No of Total Share Managing No of Total Share
bank or group issues US$(m) (%) bank or group issues US$(m) (%) bank or group issues US$(m) (%)
1 Citigroup 68 26,418.77 14.5 1 Citigroup 40 16,573.17 20.8 1 JP Morgan 31 7,933.79 9.4
2 JP Morgan 65 21,470.52 11.8 2 BAML 27 7,531.56 9.5 2 Wells Fargo 26 7,643.94 9.1
3 Wells Fargo 58 21,344.95 11.7 3 JP Morgan 29 7,128.33 9.0 3 BAML 27 7,534.01 8.9
4 BAML 52 18,259.99 10.0 4 RBC 21 5,820.13 7.3 4 Citigroup 27 5,445.36 6.5
5 Credit Suisse 35 14,329.09 7.8 5 Deutsche Bank 22 4,815.23 6.0 5 Barclays 18 4,811.12 5.7
6 Goldman Sachs 32 10,738.94 5.9 6 Barclays 20 4,704.39 5.9 6 Credit Suisse 18 4,552.77 5.4
7 Morgan Stanley 26 10,239.97 5.6 7 Wells Fargo 22 4,544.56 5.7 7 SG 9 4,460.78 5.3
8 Deutsche Bank 31 7,908.70 4.3 8 Mizuho 13 4,290.70 5.4 8 Deutsche Bank 20 4,443.84 5.3
9 RBC 26 7,814.01 4.3 9 Goldman Sachs 13 3,610.73 4.5 9 Goldman Sachs 11 4,221.06 5.0
10 Barclays 29 7,617.34 4.2 10 MUFG 12 3,351.49 4.2 10 RBC 14 3,764.82 4.5
Total 298 182,558.66 Total 120 79,593.38 Total 127 84,362.48
Including securitisations (Euro, foreign, global and domestics, excluding Excludes MBS. Includes securitisations, PFI bonds, self-funded issues and credit-linked
CDOs) and PFI bonds. notes. Excludes US global ABS/MBS and CDOs.
Source: Thomson Reuters SDC code: B16b Source: Thomson Reuters SDC code: F14 Source: Thomson Reuters SDC code: J10c
SSAR
US DOLLARS
Mar 27 2018 KfW US$4bn Apr 12 2021 2.625 99.87 MS flat / T+25.35 2.67
EUROS
Mar 27 2018 Baden-Wuerttemberg €500m Apr 5 2028 0.8 99.895 MS-18 / B+28.7 0.811
Mar 27 2018 Rentenbank €50m incr May 18 2027 0.625 99.295 - 0.705
(€1.2bn)
Mar 28 2018 France linker €3.5bn Jul 25 2036 0.1 108.738 OATi ‘30+27 -0.361
Mar 28 2018 Land Berlin €250m Apr 12 2021 3mE+40 101.904 3mE-22 -
NON CORE
Mar 26 2018 IFC (Green) SKr500m May 12 2025 0.9 99.931 - -
CORPORATES
US DOLLARS
Mar 26 2018 Dollar General US$500m May 1 2028 4.125 99.899 T+130 4.137
Mar 26 2018 Allstate Corporation US$250m Mar 29 2021 3mL+43 100 3mL+43 -
Mar 26 2018 Allstate Corporation US$250m Mar 21 2023 3mL+63 100 3mL+63 -
Mar 26 2018 Bell Canada US$750m Mar 29 2048 4.464 100 T+140 4.464
Mar 26 2018 CenterPoint Energy US$300m Apr 1 2023 3.55 99.782 T+97 3.598
Mar 26 2018 CenterPoint Energy US$300m Apr 1 2028 4 99.942 T+117 4.007
Mar 26 2018 ABB Finance (USA) US$700m Apr 3 2020 2.8 99.936 T+55 2.833
Mar 26 2018 ABB Finance (USA) US$450m Apr 3 2023 3.375 99.932 T+75 3.39
Mar 26 2018 ABB Finance (USA) US$750m Apr 3 2028 3.8 100 T+95 3.8
Mar 26 2018 Valero Energy Part US$500m Mar 15 2028 4.5 99.66 T+170 4.543
Mar 27 2018 Colonial Pipeline US$550m Apr 15 2048 4.25 98.826 T+128 4.32
Mar 27 2018 CRH America Finance US$900m Apr 4 2028 3.95 99.371 T+125 4.027
,Aû4ROBEûSOLDûITSûlFTHûNON
CONFORMINGû Volkswagen Financial Services raised In February, Geely announced it had
RMBS issue last September with the A$520m A$466m from the Driver Australia Four bought a stake of almost 10% in Daimler in a
La Trobe Financial Capital Markets Trust Trust Auto ABS in May 2017. US$9bn deal for access to the Mercedes-Benz
2017-2. owner’s technology, Reuters reported.
GEELY PRINTS MAIDEN ABS
EVERBRIGHT SECURITIES LOOKS
ASIA-PACIFIC ABS Chinese automaker ZHEJIANG GEELY HOLDING OFFSHORE
GROUP has raised Rmb1.98bn (US$314m)
FIFTH AUSTRALIAN DRIVER from a debut offering of asset-backed EVERBRIGHT SECURITIES plans to raise up to
securities in China. HK$20bn-equivalent (US$2.5bn) through the
VOLKSWAGEN FINANCIAL SERVICES has released The maiden ABS issue, backed by car issuance of offshore debt.
initial price talk for its A$699m Driver leases, comprises a Rmb1.8bn senior piece The instruments may be commercial
Australia Five Trust auto ABS issue. of 0.72 years and a Rmb180m unrated loans, bonds, subordinated debentures or
Guidance for the A$661.5m of Class A and subordinated portion of 2.16 years, structured notes, according to a company
A$37.5m of Class B notes, with weighted- according to a press release from China lLINGûTOûTHEû3TOCKû%XCHANGEûOFû(ONGû+ONG
average lives of 1.78 and 2.82 years, is Merchants Securities, arranger on the issue. The Chinese brokerage is also looking to
one-month BBSW plus 95bp area and 150bp The senior tranche was privately placed issue asset-backed securities in the
area, respectively. WITHûQUALIlEDûINVESTORSûATûPARûTOûYIELDû mainland’s domestic market.
The Class As are rated AAA/AAA Zhejiang Wisdom Leasing, a subsidiary of The total issue size of the ABS issue will
(S&P/Fitch) and the Class Bs are rated Zhejiang Geely, is the ABS originator and not be more than 50% of the company’s net
A+/AA–. Zhejiang Geely is the guarantor. assets at the end of last year. The board has
ANZ and Bank of America Merrill Lynch are The securities will be listed on the cleared both plans, which now await
joint lead managers on the trade. Shanghai Stock Exchange. approval from shareholders and regulators.
MS+1 area(I), 3 >US$5bn, >90 acs Aaa/AAA/Scope Citi/Nomura/RBC Amers 42%, Eur 35%, Asia 20%, ME 1%,
MS+1 area(G) AAA Other 2%. CB 46%, Bks 28%, AM 26%.
MS-18 area 0 >€590m, >30 acs Aaa/AAA Barc/BLB/DZ/HSBC/LBBW/Uni Ger 54%, Fr 19%, Benelux 12%, RoEur
9%, Asia 6%. CB/OI 22%, AM 57%, Tsy
21%.
- - - Aaa/AAA/AAA CMZ -
OATi ‘30+high 20s, 4 >€11.5bn, 100 acs Aa2/AA/AA/AAA Barc/BNPP/HSBC/JPM/NatWest UK 37%, Fr 24%, RoEur 18%, RoEZ 13%,
OATi ‘30+28 area RoW 8%. Bks 36%, AM 24%, Ins/PF 21%,
HF 10%, OI 9 %.
3mE-22 area - - Aa1/-/AAA/Scope BLB/LBBW/NordLB -
AAA
- - - Aaa/AAA Danske -
Mar 27 2018 CRH America Finance US$600m Apr 4 2048 4.5 99.654 T+155 4.583
Mar 27 2018 George Washington Univ US$795m Sep 15 2048 4.126 100 T+108 4.126
Mar 27 2018 Realty Income US$500m Apr 15 2025 3.875 99.5 T+125 3.957
Mar 27 2018 Sutter Health US$341.635m Aug 15 2028 3.695 100 T+88 3.695
Mar 27 2018 Sutter Health US$341.635m Aug 15 2048 4.091 100 T+103 4.091
Mar 28 2018 Mylan US$750m Apr 15 2028 4.55 99.752 T+180 4.581
Mar 28 2018 Mylan US$750m Apr 15 2048 5.2 99.682 T+220 5.221
EUROS
Mar 27 2018 Akelius €500m Oct 5 2078 (Oct 2023) 3.875 99.645 MS+348.8 / -
B+399.7
Mar 28 2018 Toyota Finance Australia €500m Apr 6 2023 0.5 99.528 MS+23 / B+75.3 0.596
Mar 29 2018 Euroclear €300m Apr 11 2030 1.5 99.717 MS+40 1.526
Mar 29 2018 Euroclear €400m Apr 11 2048 (Apr 2028) 2.625 100 MS+165.9 -
STERLING
Mar 26 2018 Land Securiities £350m Mar 29 2027 (LFM Mar 2.375 99.326 G+97 2.459
2029)
NON CORE
Mar 23 2018 SAAB SKr600m Mar 27 2020 0.413 100 - -
Mar 23 2018 SAAB SKr250m Mar 27 2020 3mSt+75 100.405 - -
Mar 23 2018 SAAB SKr400m Mar 27 2023 3mSt+120 100 3mSt+120 -
Mar 26 2018 Klovern SKr900m Apr 4 2022 3mSt+400 100 3mSt+400 -
Mar 27 2018 Telia NKr750m Apr 9 2030 3.04 - - -
Mar 27 2018 Greater Toronto Airports C$500m Jun 1 2037 3.26 99.932 GOC+100 3.265
Authority
Mar 27 2018 Daimler Rmb1bn Apr 9 2021 4.8 100 - 4.8
FINANCIALS
US DOLLARS
Mar 26 2018 Citizens Bank US$500m Mar 29 2023 3.7 99.855 T+110 3.732
Mar 26 2018 Citizens Bank US$250m Mar 29 2023 3mL+95 100 - 3mL+95
EUROS
Mar 27 2018 Ibercaja €350m Perpetual (Apr 2023) 7 100 MS+680.9 7
SWISS FRANCS
Mar 28 2018 Berner KB SFr150m May 3 2027 0.4 100.177 MS+5 / Eidg+47 0.38
NON CORE
Mar 22 2018 SBAB Bank SKr600m incr Mar 29 2021 3mSt+75 101.465 3mSt+27 -
(SKr1.8bn)
Mar 27 2018 CIBC C$1.5bn Apr 4 2028 (Apr 2023) 3.45 99.968 OTC+140 3.547
Mar 28 2018 Sparbanken Skåne SKr700m Oct 9 2020 3mSt+75 - - -
Mar 28 2018 Liberty Financial A$150m Apr 9 2021 5.1 99.821 ASW+300 5.165
HIGH YIELD
US DOLLARS
Mar 26 2018 GCP Applied Technologies US$350m Apr 15 2026 (Apr 2021) 5.5 100 T+268 5.5
Mar 27 2018 Tronox US$615m Apr 15 2026 (Apr 2021) 6.5 100 T+379 6.5
Mar 27 2018 Boyne USA US$400m May 1 2025 (May 2021) 7.25 100 T+455 7.25
Mar 28 2018 Coty US$550m Apr 15 2026 (Apr 2021) 6.5 100 T+376 6.5
EUROS
Mar 28 2018 Coty €550m Apr 15 2023 (Apr 2020) 4 100 B+409 4
Mar 28 2018 Coty €250m Apr 15 2026 (Apr 2021) 4.75 100 B+449 4.75
- - - - Danske/SEB -
- - - - Danske/SEB -
- - - - Danske/SEB -
- - - - Danske/Nordea/SEB -
- - - Baa1/A- Swed -
GOC+103 (+/-3) - - Aa3/A+ BMO/CIBC/RBC -
Low/Mid 7%s, - >€850m, >130 acs -/B-/B Barc/BBVA/JPM/UBS UK/Ire 51%, Fr 12%, Sp 12%, Switz 9%, It
7.125% area, 7%, Ger/Aus 5%, Asia 2%, Other 2%. AM
7% 48%, HF 39%, Bks/PB 12%, Ins/PF 1%.
- - - A1/A Danske -
WHICHûAREûJOINTLYûANDûSEVERALLYûGUARANTEEDû Source: Thomson Reuters SDC code: L4 Source: Thomson Reuters SDC code: L1
Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)
Mar 25 2018 Luso International Banking US$93.2m incr Dec 28 2027 5.375 99.878 - 5.4
(US$343.2m)
Mar 26 2018 Taizhou Huaxin US$56m incr Mar 15 2021 6.8 100 - 6.8
Pharmaceutical (US$206m)
Mar 26 2018 Zhongrui Industrial Group US$85m Mar 29 2020 9.5 100 - 9.5
Mar 27 2018 AIA Group US$500m Apr 6 2028 3.9 99.688 T+115 3.938
Mar 27 2018 Baoxin Auto (China Grand US$300m Apr 2 2019 6.625 100 - 6.625
Auto)
Mar 27 2018 Poly Property Group US$350m Apr 10 2021 5.2 100 - 5.2
Mar 28 2018 Shougang Group US$500m Apr 4 2019 3.95 100 - 3.95
Mar 28 2018 Bahrain sukuk US$1bn Oct 5 2025 6.875 100 T+419.5 6.875
Mar 28 2018 Vrio Corp US$650m Oct 4 2023 6.25 100 - 6.25
#REDIT3IGHTSûSAIDûITûPREFERREDû!)!ûOVERû -OODYSûCHANGEDûITSûOUTLOOKûONû3OUTHû
0RUDENTIALûGIVENûTHATûTHEûLATTERûCONTINUEDûTOû !FRICAûTOûSTABLEûFROMûNEGATIVEûONû-ARCHûû
SUFFERûFROMûAûWEAKûQUALITYûOFûCAPITAL EUROPE/AFRICA BASEDûONûITSûVIEWûTHATûAûPREVIOUSûWEAKENINGû
,ASTûMONTHû!)!û'ROUPûPOSTEDûAûûRISEû OFû3OUTHû!FRICASûINSTITUTIONSûWILLûGRADUALLYû
INûNEWûBUSINESSûINûTHEûLATESTûlSCALûYEARû REVERSEûUNDERûAûMOREûTRANSPARENTûANDû
MEETINGûFORECASTS BELARUS PREDICTABLEûPOLICYûFRAMEWORKû)TûMAINTAINSûAû
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TERMûISSUERû "AAûRATING
DEFAULTûRATINGûTOû!!nûFROMû!ûLASTû.OVEMBERû BELARUS DEVELOPMENT BANK EYES 30ûWHICHûRATESû3OUTHû!FRICAûATû""ûALSOû
CITINGûAûhVERYûSTRONGvûMARKETûFRANCHISEûANDû LOCAL CURRENCY EUROBONDS REVISEDûITSû'$0ûFORECASTSûFORûTHEûCOUNTRYû
lNANCIALûPERFORMANCEûCONSERVATIVEû UPWARDSûANDûURGEDûTHEûCOUNTRYûTOûCONTINUEû
INVESTMENTûMIXûANDûVERYûSTRONGûCAPITALISATION BELARUS DEVELOPMENT BANKûMIGHTûRAISEûUPûTOû WITHûREFORMSû&ITCHûRATESû3OUTHû!FRICAû""
!)!ûAGREEDûTOûBUYûTHEûINSURANCEûUNITûOFû 53MûINû"ELARUSûRUBLE
DENOMINATEDû 4SHEPISOû-OAHLOLIûTHEûCHIEFûDIRECTORûOFû
#OMMONWEALTHû"ANKûOFû!USTRALIAûLASTû %UROBONDSûINûûTHEûHEADûOFûTHEûBANKû LIABILITYûMANAGEMENTûATûTHEû4REASURYûTOLDû
3EPTEMBERûFORû53BNû4HISûRANKEDûASûTHEû SAIDûONû4HURSDAY REPORTERSûITûCOULDûPOTENTIALLYûISSUEûINû
BIGGESTû!SIANûBUYOUTûOFûANû!USTRALIANû 4HEûISSUERûISûRATEDû"ûBYû30ûANDû&ITCH CURRENCIESûOTHERûTHANûDOLLARSûANDûPRINTûINû
lNANCIALûlRMûMorgan StanleyûBNP Paribas -EANWHILEûTHEûBELARUSûSOVEREIGNûPLANSûTOû CHUNKSûIFûNECESSARYûRATHERûTHANûSELLINGû
and BarclaysûWEREûBOOKRUNNERS ISSUEûBONDSûINû#HINAûWORTHû53MûTHEû 53BNûALLûATûONCE
lNANCEûMINISTRYûSAIDûONû7EDNESDAY 4HEûSOVEREIGNûRAISEDû53BNûLASTûYEARûINû
ITSûlRSTûTRANSACTIONûSINCEûBEINGûDOWNGRADEDû
INDIA TOûJUNKûSTATUSûBYû30ûANDû&ITCH
SOUTH AFRICA -EANWHILEû-OODYSûHASûDOWNGRADEDû
MIAL HIRES FOR DOLLAR TRADE STATE
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AFRICAN SOVEREIGN ISSUES RFP CORPORATEûFAMILYûRATINGûTOû"ûFROMû"
MUMBAI INTERNATIONAL AIRPORTû-)!, ûHASû FOR EUROBOND h4HEûRATINGûACTIONûREmECTSûTHEûFACTûTHATû
APPOINTEDûCitigroupûHSBCûDeutsche BankûJP DESPITEûAûNUMBERûOFûIMPROVEMENTSûATûTHEû
Morgan and Standard CharteredûASûGLOBALû SOUTH AFRICAûHASûSENTûAûREQUESTûFORûPROPOSALSû COMPANYûINûRELATIONûTOûITSûCORPORATEû
COORDINATORSûFORûAûPOTENTIALû53ûDOLLARûBONDû TOûBANKSûFORûAû%UROBONDûISSUANCEûACCORDINGû GOVERNANCEûANDûLIQUIDITYûTHEREûISûLIMITEDû
OFFERINGûACCORDINGûTOûMARKETûSOURCES TOûTHEûCOUNTRYSû.ATIONALû4REASURY VISIBILITYûATûTHISûJUNCTUREûASûTOû%SKOMSûPLANSû
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ADOPTûTHEû2EGû3!ûFORMAT ONûTHEûDETAILSûOFûTHEûPROCESSûASûITûISûSTILLûATûANû lNANCIALûPOSITIONûONûAûSUSTAINABLEûFOOTINGvû
!ûCONSORTIUMûLEDûBYû)NDIANûCONGLOMERATEû EARLYûSTAGE SAIDûTHEûAGENCYûABOUTûITSûDECISION
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!UTHORITYûOFû)NDIAûOWNSûTHEûREST AROUNDûTHEûPOLITICALûCHANGESûINûTHEûCOUNTRYû OFûANYûTANGIBLEûlNANCIALûSUPPORTûFORûTHEû
-)!,ûANDûTHEûBANKSûHAVEûYETûTOûMAKEûANû TOûTAPûINTERNATIONALûBONDûMARKETSûFORûUPûTOû COMPANYûINûTHEû&EBRUARYû3TATEû"UDGETûANDû
OFlCIALûANNOUNCEMENTûONûTHEûPLANNEDû 53BNûONEûOFûTHEûCOUNTRYSûTOPû4REASURYû THEûLIQUIDITYûANDûFUNDINGûCHALLENGESû%SKOMû
DOLLARûBONDûSALE OFlCIALSûSAIDûEARLIERûINû-ARCH MAYûCONTINUEûTOûFACEv
4HEûBANKûHASûBEENûTRYINGûTOûBRIDGEûTHEû
PREFERRINGûTOûHOLDûONûTOûCASHûFORûFEARûOFû
REDEMPTIONSûORûPOORûSECONDARYû
PERFORMANCE
h.OûONEûISûSAYINGûWEûHAVEûSEENûTHEûWORSTû
Paraguay prepares better
YETvûONEûBANKERûSAIDûh)NVESTORSûFEELûTHEû
PRIMARYûISûBROKENûANDûYOUûAREûBETTERûOFFû
debt management
HOLDINGûCASHv
0ROCEEDSûWILLûHELPûRElNANCEû53MûOFû SOVEREIGN DEBT Finance minister says country assessing debt sustainability levels
SûANDûTOûEXTENDûAû53MûLOANûTOû
)N2ETAILû0ERUû#ORPûTOûHELPûPARTIALLYûPAYûAû With six dollar bond issues under its belt, US$530m 30-year that was priced to yield 5.6%
BRIDGEûLOANûFORûTHEûACQUISITIONûOFû PARAGUAY is now laying the groundwork for a on the back of a US$2.6bn order book.
PHARMACEUTICALûCOMPANYû1UICORP more sophisticated debt management strategy. The country has just US$20m left to raise this
Citigroup and JP MorganûACTEDûASûGLOBALû The government has been assessing its debt year, an amount that can be covered throughout
COORDINATORSûANDûJOINTûBOOKRUNNERSûALONGû sustainability levels while exploring ways to the year with small issues in the domestic
with Credit Suisse deepen what is still a very shallow local market. market, said Gimenez.
“We still have a very conservative approach The government is also carrying out reforms
towards everything we do in regards to debt,” to deepen the local market. The idea is not only
URUGUAY Finance Minister Lea Gimenez told IFR on the to make it easier for certain state-owned banks
sidelines of the IDB meetings in Argentina. “We to issue debt locally, but to allow the country’s
URUGUAY PLANS ‘IMMINENT’ DEBT SALE think in the next few years that debt will reach a largest pension fund to buy government bonds.
steady-state point and stabilise.” A law is also making its way through Congress
URUGUAYûISûPLANNINGûTOûTAPûTHEûGLOBALûDEBTû The country, rated Ba1/BB/BB, still has scope to better regulate pension funds, providing more
MARKETSûhIMMINENTLYvûANDûEXPECTSûTOûSELLû to issue more debt. transparency and guidelines for investments.
BONDSûINûFOREIGNûCURRENCYûINûûAFTERû According to a recent analysis conducted with “Paraguay is a very risk-averse county - so
STICKINGûTOûTHEûLOCALûCURRENCYûMARKETûLASTû the IMF, sustainable debt levels for the country averse to risk-taking that we don’t even invest [a
YEARûlNANCEûMINISTERû$ANILOû!STORIûTOLDû stand at somewhere between 30% and 45% of good part of] the public works funds, which are
2EUTERSûINûANûINTERVIEW GDP versus the current 25%, Gimenez said. sitting in the central bank and losing value,” said
!STORIûWHOûISûCONSIDERINGûRUNNINGûFORû “In terms of the capacity of the state we could Gimenez.
PRESIDENTûOFûTHEû3OUTHû!MERICANû triple [our debt service commitments], but we are “We have been [gradually] investing part of
COUNTRYûNEXTûYEARûSAIDûTHEûECONOMYûISû not planning to do that,” said Gimenez, who at 36 the funds in Triple A assets, but we should do this
FORECASTûTOûEXPANDûBYûûTHISûYEARûUPû is the youngest finance minister in the region, and more proactively.”
FROMûûINûûTHANKSûPARTLYûTOûTHEû the first woman to hold that position in Paraguay. While the development of the local market is
RESTARTûOFûSTATE
RUNûOILûCOMPANYû!NCAPSû Rather than increase debt, the government is important, the sovereign isn’t necessarily making
RElNERYûWHICHûUNDERWENTûMAINTENANCEû working on a law to allow the sovereign to more a push toward issuing local-currency debt -
INû readily take advantage of windows of opportunity unlike some other Latin American countries.
h!ûSIGNIlCANTûPARTûOFûTHEûMANUFACTURINGû to perform some liability management. That is partly because Paraguay has a natural
INDUSTRYûWILLûHAVEûEXTRAORDINARYûGROWTHvû “The objective of these transactions is not to currency hedge through the dollar revenues
!STORIûSAIDûONûTHEûSIDELINESûOFûTHEû)NTER
issue new debt or grow the debt level, but rather generated at the hydroelectric dams that it
!MERICANû$EVELOPMENTû"ANKSûANNUALû improve the debt profile,” she said. “When these jointly owns with Brazil and Argentina.
MEETINGûINû-ENDOZAû!RGENTINA windows open up in the international markets, “We have revenues from [these projects]
(EûSAIDûTHEûûGROWTHûlGUREûPUBLISHEDû we can go out and buy back some old bonds and which are sufficiently large to cover all the debt
ONû4HURSDAYûBYûTHEûCENTRALûBANKûWASû issue new debt at better rates.” service,” Gimenez said.
SLIGHTLYûBELOWûTHEûGOVERNMENTSûPROJECTIONû Land-locked Paraguay has built a relatively By 2023, the country will have repaid the cost
FORûûBUTûWASûHIGHERûTHANûITSûINITIALû extensive yield curve in US dollars since its debut of construction for one of those dams, bringing
FORECASTûOFû in the international markets in 2013. in additional revenues of around US$1bn a year,
&ORûû!STORIûSAIDûRECENTLYûANNOUNCEDû Paraguay took out most of its 2018 financing she said.
INCENTIVESûFORûINVESTMENTûANDûTHEûhREVERSALvû needs earlier this month, when it issued a Paul Kilby
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EXPORTINGû
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For more information on the various advertising and sponsorship opportunities available within IFR,
email: cmi.advertising:@tr.com
margins ranging from 36bp to 65bp over variable-rate tranche paying 90bp over six- for the remaining stake, a premium of 25%
one-month Tibor. month Euribor. to the stock’s March 23 closing price,
Mitsubishi UFJ Trust & Banking, Mizuho Bank, 4HEûlVE
YEARûTRANCHESûCOMPRISEûANûõMû VALUINGûTHEûCOMPANYûATûABOUTû53BNû
Mizuho Trust & Banking, Resona Bank, Shinsei lXED
RATEûTRANCHEûPAYINGûûANDûAûõMû Reuters reported.
Bank, SMBC and Sumitomo Mitsui Trust Bank tranche paying 100bp over six-month Euribor.
joined in syndication. WABCO is listed on the New York Stock HEIDELBERG AGREES €320m REFI
The loans are slated to be drawn down on Exchange.
April 24 and August 20. Printing-press maker HEIDELBERGER
Separately, Meiji Yasuda Life Insurance gave DRUCKMASCHINEN has agreed a €320m loan
Nippon REIT a ¥500m eight-year bilateral loan DENMARK RElNANCINGûONûIMPROVEDûTERMSûALLOWINGû
ATûAûYET
TO
BE
DETERMINEDûlXED
INTERESTûRATE the company to redeem part of its existing
4HEûBORROWERûINVESTSûMAINLYûINûOFlCEû NORDIC AVIATION NETS US$486m high-yield bond due in 2022.
buildings. 4HEûlVE
YEARûDEALûWASûARRANGEDûBYû
The REIT last tapped the syndicated loan Regional aircraft leasing company NORDIC Heidelberg’s six main lenders: Bank of China,
market in March 2017 to raise six bullet AVIATION CAPITAL has completed the BNP Paribas, Commerzbank, Deutsche Bank,
term loans of a combined ¥21.8bn. MUFG PLACEMENTûOFû53MûOFûUNSECUREDûDEBTû HSBC and LBBW.
arranged those loans with tenors of six to through a US private placement and a debut DZ Bank, IKB, NIBC and SaarLB also
eight years and margins ranging from 39bp Schuldscheindarlehen. participated.
to 54bp over one-month Tibor. 4HEûDEBTûWHICHûWILLûBEûUSEDûTOûRElNANCEû Heidelberg plans to nearly halve its
aircraft in the company’s portfolio, lNANCINGûINTERESTûCOSTûINûTHEûMEDIUMûTERMû
COMPRISESûAû53MûSENIORûUNSECUREDû to around €20m.
TAIWAN PRIVATEûPLACEMENTûANDûAû53Mû The new facility provides the company
unsecured SSD with maturities of three, WITHûlNANCIALûmEXIBILITYûTOûSUPPORTûITSû
LG DISPLAY SIGNS AR FACILITY lVEûSEVENûEIGHTûANDûûYEARS digital transformation.
The US private placement was arranged !FTERûTHEûRElNANCINGû(EIDELBERGSû
LG DISPLAY TAIWANûHASûWRAPPEDûUPûAû53Mû by Citigroup and BNP Paribas, while the SSD lNANCINGûSTRUCTUREûCOMPRISESûTHEûõMû
one-year accounts receivable factoring was arranged by Investec Bank. syndicated loan, a convertible bond of €59m
facility with four lenders. 4HEûlNANCINGûISûPARTûOFû.!#SûMIGRATIONû maturing in March 2022, an early callable
Mandated lead arranger and bookrunner TOûANûUNSECUREDûlNANCINGûSTRUCTUREûAFTERû bond of €204m maturing in May 2022, and
Taishin International Bank was joined by THEûCOMPANYûCOMPLETEDûAû53Mû an EIB loan of €100m with a term until 2024.
mandated lead arranger Far Eastern unsecured private placement in June 2017. Heidelberg extended the maturity of its
International Bank and participants KGI Bank 4HATûlVEûANDûSEVEN
YEARûlNANCINGûWASû existing revolving credit facility for an initial
and Taipei Fubon Commercial Bank. arranged by Citigroup and Deutsche Bank. total of €250m in August 2015. The amended
Funds are for general corporate purposes. .!#ûALSOûAGREEDûAû53MûUNSECUREDû lNANCINGûWASûDUEûTOûAMORTISEûTOûõMûBYû
The borrower is a fully owned subsidiary syndicated revolving credit facility in July 2019.
of South Korea’s LG Display. 2017 arranged by Citigroup with BNP Heidelberg had group sales of around
Paribas, Credit Agricole and Deutsche Bank. €2.5bn in 2016/17. The company is rated B
4HATûlNANCINGûHADûAûTHREE
YEARûMATURITYû by S&P and B2 by Moody’s.
and is expected to be increased through an
accordion feature. SCOUT24 NETS DEBUT SCHULDSCHEIN
EUROPE/MIDDLE
EAST/AFRICA Digital marketplace operator SCOUT24 has
GERMANY placed a debut €215m Schuldscheindarlehen
via ING and LBBW, taking advantage a strong
BELGIUM KNAUF EYES US$4bn FOR USG BID 33$ûMARKETûTOûDIVERSIFYûITSûlNANCINGûANDû
extend its maturities.
WABCO PLACES €300m SCHULDSCHEIN Family-owned building products company
GEBR KNAUFûCOULDûRAISEûUPûTOû53BNûINûDEBTû EMEA LOANS BOOKRUNNERS – FULLY
Commercial vehicle systems company WABCO lNANCINGûTOûBACKûITSûUNSOLICITEDûBUYOUTû SYNDICATED VOLUME
has placed a €300m Schuldscheindarlehen. offer for US-based USG Corp. BOOKRUNNERS: 1/1/2018 TO DATE
4HEûlNANCINGûDIVERSIlESû7!"#/SûDEBTû +NAUFûSAIDûITûHASûAûHIGHLYûCONlDENTûLETTERû Managing No of Total Share
portfolio in an attractive euro interest rate from Morgan Stanley for the debt. bank or group issues US$(m) (%)
environment. The acquisition will not be subject to any 1 SG 35 13,402.88 8.3
WABCO Europe BVBA is the borrower, lNANCINGûCONDITIONSûANDû+NAUFûEXPECTSûTOû 2 Deutsche Bank 27 11,870.82 7.3
while parent company WABCO Holdings Inc lNANCEûTHEûTRANSACTIONûINCLUDINGûANYû 3 BAML 20 10,987.10 6.8
is guarantor. REQUIREDûRElNANCINGûOFû53'ûDEBTûFROMû 4 Credit Agricole 43 9,769.14 6.0
The SSD was arranged by BNP Paribas, ING existing funds and additional borrowings. 5 BNP Paribas 45 8,836.75 5.5
and UniCreditû4HEûlNANCINGûHASûTHREEûFOURû Knauf intends to prepare and deliver a 6 Citigroup 21 8,754.66 5.4
ANDûlVE
YEARûMATURITIES FULLYûCOMMITTEDûlNANCINGûBYûTHEûTIMEûOFûTHEû 7 Goldman Sachs 15 8,128.34 5.0
The three-year tranches comprise a €10m SIGNINGûOFûAûDElNITIVEûAGREEMENT 8 ING 29 7,865.05 4.9
lXED
RATEûTRANCHEûPAYINGûûANDûAû USG has rejected the buyout offer from its 9 HSBC 29 7,611.00 4.7
€50m variable-rate tranche paying 80bp second biggest shareholder saying it 10 JP Morgan 16 6,625.84 4.1
over six-month Euribor. substantially undervalues the company. Total 147 161,590.85
The four-year tranches comprise a €60m Gebr Knauf, which owns a 10.5% stake in Proportional credit
lXED RATEûTRANCHEûPAYINGûûANDûAûõMû THEûCOMPANYûHASûOFFEREDû53ûPERûSHAREû Source: Thomson Reuters SDC code: R17
For BBB+/Baa1/BBB+ the three-year pays a General Dynamics said that Wells Fargo Joint bookrunners and joint lead
margin of 102.5bp over Libor and a 10bp also replaced JP Morgan after it resigned as arrangers are JP Morgan (which is also
FACILITYûFEEûTHEûlVE
YEARûPAYSûBPûANDû administrative agent on the company’s ADMINISTRATIVEûAGENT ûBank of America Merrill
BPûANDûTHEû
DAYûPAYSûBPûANDûBP EXISTINGûlVE
YEARûCREDITûAGREEMENTûWHICHû Lynch, MUFG, Citigroup and US Bank (which are
For BBB/Baa2/BBB the three-year pays a PROVIDESûFORûAû53BNûSYNDICATEDûlVE
YEARû SYNDICATIONûAGENTS
margin of 110bp over Libor and a 15bp multicurrency revolver that replaces a Goldman Sachs, Wells Fargo, HSBC and
FACILITYûFEEûTHEûlVE
YEARûPAYSûBPûANDû 53BNûlVE
YEARûFACILITYûTHATûWASûSETûTOû Deutsche Bank are documentation agents.
BPûANDûTHEû
DAYûPAYSûBPûANDû expire in July 2018. General Dynamics said it The company completed the placement
12.5bp. plans to use this facility, along with an OFû53MûOFûBONDSûONû-ONDAYû4HEû
For BBB-/Baa3/BBB- the three-year pays a EXISTINGû53BNûLOANûTHATûMATURESûINûû privately placed bonds comprise
margin of 130bp over Libor and a 20bp to backstop commercial paper issuance. 53MûOFûûSENIORûBONDSûDUEûINû
FACILITYûFEEûTHEûlVE
YEARûPAYSûBPûANDû ûANDû53MûOFûûSENIORûBONDSû
BPûANDûTHEû
DAYûPAYSûBPûANDû REGENCY UPS RCF TO US$1.25bn due in 2028.
17.5bp.
For BB+/Ba1/BB+ the three-year pays a REGENCY CENTERS CORP amended its existing DANAHER TAKES US$1bn RCF
margin of 150bp over Libor and a 25bp unsecured revolving credit facility to
FACILITYûFEEûTHEûlVE
YEARûPAYSûBPûANDû INCREASEûTHEûSIZEûTOû53BNûFROMû53BNû Conglomerate DANAHERûHASûAGREEDûAû53BNû
BPûANDûTHEû
DAYûPAYSûBPûANDû and extend the maturity to March 23 2022. 364-day revolving credit facility with Bank of
22.5bp. The maturity can be extended for two America Merrill Lynch as administrative agent.
For BB+/Ba1/BB+ or lower the three-year additional six-month periods. The facility expires on March 22 2019 and
pays a margin of 170bp over Libor and a Borrowings will be made at 87.5bp over proceeds will be used for general corporate
BPûFACILITYûFEEûTHEûlVE
YEARûPAYSûBPû Libor, reduced from 92.5bp under the purposes.
ANDûBPûANDûTHEû
DAYûPAYSûBPû previous facility, based on a ratings grid. Pricing opens at 81.5bp over Libor with a
and 27.5bp. There will be a 15bp annual facility fee. facility fee of 6bp, for all-in drawn pricing of
4HEûTHREE
YEARûANDûlVE
YEARûLOANSûAREû Wells Fargo and PNC are joint bookrunners 87.5bp.
slated to extend maturities of existing loans and lead arrangers of the facility. Danaher is rated A2 by Moody’s and A by
THEûCOMPANYûRElNANCEDûINûû4HEû
Regency owns, operates and develops S&P.
day is a new tranche. shopping centres. Lenders are BAML, MUFG, Barclays, BNP
Pricing is the BBB/Baa2/BBB level in line The company is rated Baa2 by Moody’s Paribas, Citigroup, Commerzbank, Credit Suisse,
with the credit facility rating. The loans are and BBB+ by S&P. Deutsche Bank, Goldman Sachs, HSBC, JP Morgan,
expected to remain undrawn. #OMMITMENTSûAREû53MûEACHûFORû Lloyds Bank, Mizuho, PNC, Royal Bank of Canada,
Upfront fees are 6bp on old money and 7ELLSû&ARGOûANDû0.#û53MûEACHûFORûUS Standard Chartered, US Bank and Wells Fargo.
18bp on new money on both the three-year Bank, SunTrust and Regions Bankû53MûFORû
ANDûlVE
YEARûANDûBPûONûTHEû
DAY Bank of America Merrill Lynch,JP Morgan and DOMINION ENERGY WRAPS RCF
Mizuhoû53MûEACHûFORûBMO, BB&T,
WELLS REPLACES JPM ON GENERAL Sumitomo Mitsui and TDûANDû53MûFORû Power producer DOMINION ENERGY amended
DYNAMICS Comerica. and extended its revolving credit facility,
INCREASINGûCOMMITMENTSûBYû53BNûTOû
Wells Fargo has replaced JP Morgan as PENTAIR SPIN-OFF GETS US$800m 53BNûANDûPUSHINGûOUTûTHEûMATURITYûBYû
administrative agent for GENERAL DYNAMICS’ three years.
53BNû
DAYûREVOLVINGûCREDITûFACILITYû Industrial equipment manufacturer JP Morgan is administrative agent for the
after JPM resigned from the role. PENTAIR’s electrical business NVENT has agreed loan that now matures in March 2023
General Dynamics’ loan is used for ANû53MûLOANûlNANCINGûAHEADûOFûITSû instead of April 2020.
general corporate purposes, including the spin-off. Dominion Energy, Virginia Electric and
COMPANYSûPLANNEDûMERGERûWITHû)4ûlRMû 4HEûlVE
YEARûlNANCINGûCOMPRISESûAû Power, Dominion Energy Gas Holdings and
CSRA. The defence contractor raised its all- 53MûREVOLVINGûCREDITûFACILITYûANDûAû Questar Gas are the borrowers.
cash offer for CSRA on March 20 to 53MûTERMûLOAN
53BNûFROMû53BN Pricing is based on a leverage grid. AMERICAS LOANS BOOKRUNNERS – FULLY
The increase thwarted a rival offer for For 0.5 times the term loan margin is SYNDICATED VOLUME
CSRA from defence contractor CACI, which 100bp, the facility fee is 10bp and the RCF BOOKRUNNERS: 1/1/2018 TO DATE
withdrew its offer on Wednesday. JP Morgan pays 90bp. For 0.5-1.0 times the term loan Managing No of Total Share
WASûACTINGûASû#!#)SûLEADûlNANCIALûADVISER pays 112.5bp, the facility fee is 12.5bp and bank or group issues US$(m) (%)
Prior to the resignation, JP Morgan along the RCF pays 100bp. For 1.0-1.75 times the 1 BAML 272 80,347.36 13.2
with Wells Fargo, Bank of America Merrill term loan pays 125bp, the facility fee is 15bp 2 JP Morgan 226 68,749.50 11.3
Lynch and RBC were joint lead arrangers and the RCF pays 110bp. For 1.75-2.5 times 3 Wells Fargo 192 44,808.44 7.4
and joint bookrunners. the term loan pays 137.5bp, the facility fee 4 Citigroup 117 40,225.65 6.6
The 364-day credit agreement for General is 17.5bp and the RCF pays 120bp. For over 5 Morgan Stanley 69 27,622.14 4.5
Dynamics remains on track, the company 2.5 times the term loan pays 175bp, the 6 MUFG 46 26,352.43 4.3
said. facility fee is 25bp and the RCF pays 150bp. 7 Barclays 96 26,109.77 4.3
The company also said that the maximum After the separation of the two 8 RBC 92 23,487.66 3.9
unsecured short-term promissory notes companies, nVent will have the option to 9 Credit Suisse 88 23,426.10 3.8
allowed under its commercial paper INCREASEûTHEûREVOLVERûBYûUPûTOû53Mû4HEû 10 Goldman Sachs 84 21,802.36 3.6
PROGRAMMEûWASûINCREASEDûTOû53BNûFROMû COMPANYûEXPECTSûTOûHAVEû53MûOFû Total 904 608,706.37
53BNûANDûTHEûMAXIMUMûMATURITYûWASû borrowing under the term loan and no Proportional credit
extended to 397 days from 370 days. borrowing under the revolver on separation. Source: Thomson Reuters SDC code: R7
TD Securities leads with Mizuho Securities. Pricing on the dollar tranche is 300bp Morgan Stanley, Citigroup, Goldman Sachs
Barclays, Citigroup, Deutsche Bank, JP Morgan OVERû,IBORûWITHûûmOORûWHILEûTHEûEUROû and JP Morgan led the deal.
and Wells Fargo are joint bookrunners. tranche is at 325bp over Euribor with a 0% Technology product provider CDWûSETûlNALû
The seven-year term loan is guided at mOORû"OTHûHAVEûAûûDISCOUNT TERMSûONûAû53BNûREPRICING
BP
BPûOVERû,IBORûWITHûAûûmOORûANDû The tranches include six months of soft The term loan pays 175bp over Libor with
99.75 discount. call protection at 101. The MFN sunset has AûûmOORûATûPARû)TûHASûûSOFTûCALLû
4HEûlNANCINGûINCLUDESûAû53BNûlVE
been removed. protection for six months.
year revolving credit facility. 4HEûlNANCINGûINCLUDESûAû53Mû Morgan Stanley, Barclays, JP Morgan, Bank of
0ROCEEDSûWILLûBEûUSEDûTOûRElNANCEûTHEû revolving credit facility due in 2023. America Merrill Lynch, Wells Fargo, MUFG,
company’s term loans B1 and B2 and Ratings are B2/B+ corporate and facility. Capital One, Goldman Sachs, RBC Capital Markets
borrowings under the revolving credit facility. and US Bank ARRANGEDûTHEûlNANCING
Existing ratings are B1/BB- corporate and LEGALSHIELD SET TO LAUNCH Corporate ratings are Ba2/BB+, while
B1/BB facility. facility ratings are Ba1/BBB-.
%DUCATIONALûSERVICESûlRMûADTALEM GLOBAL Legal service provider LEGALSHIELD will
EDUCATION set price talk on its covenant-lite LAUNCHûONû4UESDAYûAû53MûSENIORûLOANû EMPLOYBRIDGE MARKETS REFI
53MûTERMûLOANû"ûBACKINGûAûRElNANCING that funds the company’s sale to Stone Point
Bank of America Merrill Lynch leads with Capital from MidOcean Partners. EMPLOYBRIDGEûISûMARKETINGûAû53Mû
BMO, Northern Trust and Fifth Third. RBC Capital Markets leads the funding with COVENANT
LITEûLOANûTHATûWILLûRElNANCEû
The seven-year loan is guided at 300bp SunTrust, KKR Capital Markets, Capital One and existing debt.
OVERû,IBORûWITHûAûûmOORûANDûû/)$ BMO Capital Markets. Credit Suisse, Goldman Sachs, RBC, Citizens,
Lenders are offered six months of soft call 4HEûDEALûCOMPRISESûAû53MûREVOLVERûAû Morgan Stanley, SunTrust and Wells Fargo are
protection at 101. 53MûlRST
LIENûTERMûLOANûANDûAû arranging the seven-year loan, which is
Ratings are Ba3/BB corporate and Ba3/BB+ 53MûSECOND
LIENûTERMûLOAN expected to price at 500bp-525bp over Libor
facility. MidOcean, which purchased LegalShield WITHûAûû,IBORûmOORûANDûûISSUEûPRICE
0ROCEEDSûWILLûBEûUSEDûTOûRElNANCEûEXISTINGû in 2011, will retain a minority stake in the There will be 101 soft call protection for
revolver borrowings and fund cash to the business. six months.
balance sheet for general corporate Industrial and automotive paint maker Corporate ratings are B2/B- and facility
purposes. AXALTA COATING SYSTEMSûLAUNCHEDûAû53BNû ratings are B3/B-.
Dental care provider ASPEN DENTAL TERMûLOANû"ûREPRICINGûANDûAû53Mû EmployBridge was created in the 1990s by
MANAGEMENT has set price guidance on the add-on term loan. COMBININGûSEVERALûSTAFlNGûORGANISATIONSû
TERMûLOANûPORTIONûOFûAû53MûRElNANCINGû Price guidance is set at 175bp over Libor and has more than 490 locations throughout
credit facility. WITHûAûûmOORû4HEûISSUEûPRICEûISûEXPECTEDûATû the US.
4HEûDEALûCOMPRISESûAû53MûlVE
YEARû a range of 99.75-par. The transaction also Snack maker SHEARER’S FOODS is in market
REVOLVINGûCREDITûANDûAû53MûSEVEN
YEARû resets 101 soft call protection for six WITHûAûDEALûTHATûINCLUDESûAû53Mû
term loan B. months. incremental term loan as well as the
The term loan is guided at 325bp over Proceeds will be used to reprice the REPRICINGûOFûANûEXISTINGûROUGHLYû53Mû
,IBORûWITHûAûûmOORû4HEREûISûALSOûEXPECTEDû company’s existing US dollar-based term lRST
LIENûTERMûLOAN
to be one stepdown. LOANû"ûANDûTOûRElNANCEûITSûEXISTINGûõMû The incremental loan is guided at 425bp
The covenant-lite loan is offered at a 99.5 term loan B due 2023. OVERû,IBORûWITHûAûûmOORûOFFEREDûATûAûû
OID and has 101 soft call protection for six The repriced loan and the add-on will OID.
months. mature on June 1 2024. Proceeds from the incremental loan will be
RBC Capital Markets, Credit Suisse, BMO, Barclays is lead left on the deal, joined by USEDûTOûREPAYû53MûOFûEXISTINGûSENIORûNOTES
Deutsche Bank and JP Morgan are joint lead Deutsche Bank. Shearer’s is also looking to reprice the
arrangers. Healthcare data analytics company existing tranche to the same level, but the
Canadian gaming and online gambling INOVALON HOLDINGS has increased pricing on a loan is offered at par. Existing pricing is
company THE STARS GROUPûHASûlNALISEDûTERMSû 53BNûLOANûBACKINGûAûPORTIONûOFûITSû approximately 393bp over Libor with a 1%
for the repricing and maturity extension of 53BNûACQUISITIONûOFû!BILITYû.ETWORKûANû mOOR
ITSûEXISTINGûCOVENANT
LITEûDUAL
CURRENCYûlRST
IT provider.
lien term loan due in 2021 and 4HEûDEALûCOMPRISESûAû53MûlVE
YEARû US LEVERAGED LOANS
53M
EQUIVALENTûADD
ONûTOûTHEûFACILITY REVOLVERûANDûAû53MûSEVEN
YEARûTERMû BOOKRUNNERS: 1/1/2018 TO DATE
Deutsche Bank led with Macquarie, Barclays loan B. Managing No of Total Share
and BMO. 0RICINGûFORûBOTHûTRANCHESûmEXEDûUPûDURINGû bank or group issues US$(m) (%)
The company asked lenders to extend the syndication to 350bp over Libor with a 0% 1 BAML 155 35,086.76 12.6
loan’s maturity to 2025 from 2021. mOORûFROMûGUIDANCEûOFûBP
BPû4HEû 2 JP Morgan 128 29,174.43 10.5
4HEûDOLLARûTRANCHEûNOWûTOTALSû53BNû term loan B is at 98.5 versus 99.5 proposed 3 Credit Suisse 82 21,240.57 7.6
VERSUSû53BNûATûLAUNCHûPROûFORMAûANû at launch. 4 Wells Fargo 98 17,248.27 6.2
amortisation payment. It will be increased Soft call protection was extended to 12 5 Barclays 75 16,459.02 5.9
BYû53MûINSTEADûOFûTHEûPROPOSEDû months from six months. 6 Citigroup 62 16,409.34 5.9
53MûUPSIZEûATûLAUNCHûTOû53BN The term loan, which is covenant-lite, will 7 Goldman Sachs 74 16,067.00 5.8
The euro tranche now totals €381m amortise at 1% annually, in line with launch 8 Deutsche Bank 74 14,614.05 5.2
VERSUSû53M
EQUIVALENTûATûLAUNCHûPROû terms. The revolver has a springing leverage 9 Morgan Stanley 59 11,416.28 4.1
forma an amortisation payment. It will be covenant. 10 RBC 51 9,869.45 3.5
increased by €119m instead of the proposed 0ROCEEDSûWILLûALSOûBEûUSEDûTOûRElNANCEû Total 501 278,636.07
53M
EQUIVALENTûUPSIZEûATûLAUNCHûTOû Inovalon and Ability debt and pay related Excluding Project Finance.
deal come in conjunction with the The facility matures on April 6 2022. expected to be completed before the
company’s acquisition of CB&I, a provider of Corporate family and facility ratings are transaction closes, and reset liquidity for
technology and infrastructure for the B3/B. future acquisitions.
energy industry. Hospital and outpatient care provider Existing ratings are B3/B corporate and
Barclays was lead-left on the loan, joined SELECT MEDICAL CORP has wrapped up the ""ûlRST
LIEN
by Credit Agricole, Goldman Sachs, MUFG, ABN REPRICINGûOFûITSû53BNûTERMûLOANû" FILTRATION GROUPûWRAPPEDûAû53BN
AMRO, RBC and Standard Chartered. JP Morgan led the transaction, which EQUIVALENTûlRST
LIENûTERMûLOANûBACKINGûAû
Pricing on the term loan is 500bp over PRICEDûATûBPûOVERû,IBORûWITHûAûûmOORû RElNANCINGûANDûTWOûACQUISITIONS
,IBORûWITHûAûûmOORûATûû4HEûSPREADûWASû and par offering price, versus initial Goldman Sachs co-led with JP Morgan. BMO
increased and the OID was widened during GUIDANCEûOFûBP
BPûWITHûAûûmOORûANDû and HSBC are co-managers.
syndication, before the loan was upsized. par offering price. The seven-year term loan is structured as
Initial guidance circulated at 400bp-425bp A one-year maturity extension was added Aû53BNûTRANCHEûWITHûAûõMûCARVE
with a 99.5 OID. to the repricing amendment, so the loan out.
During syndication, soft call protection at now matures in March 2025. Pricing on the dollar tranche was
101 was also extended to 12 months from Lenders receive six months of soft call tightened to 300bp over Libor with a 0%
six months at launch. Among other changes protection at 101. mOORûFROMûOPENINGûGUIDANCEûOFûBP
to the terms of the loan, a maximum total Existing ratings are B1/B+ corporate and BPûWITHûAûûmOORû)TûSOLDûATûûVERSUSû
leverage covenant was added and the excess Ba2/BB- facility. 99.5 originally.
CASHmOWûSWEEPûWASûINCREASED Pricing on the euro tranche is 350bp over
The loan has a seven-year springing WYNDHAM CUTS PRICING %URIBORûWITHûAûûmOORûTHEûTIGHTûENDûOFû
maturity to six months inside the six-year opening guidance of 350bp-375bp with
NOTESû0ROûFORMAûTHEûTRANSACTIONûNETûlRST
WYNDHAM HOTELS & RESORTS lowered pricing on AûûmOORû)TûSOLDûATûûVERSUSûû
lien leverage is 0.8 time and net total THEû53BNûTERMûLOANûBACKINGûITSû originally.
leverage is 1.8 times. purchase of peer La Quinta’s franchising Lenders will receive six months of soft call
Corporate family ratings are Ba3/B+. and management business. protection at 101, as originally proposed.
Secured debt ratings are Ba2/BB- and Bank of America Merrill Lynch led with The loan will amortise at 1% per year.
unsecured debt ratings are B2/B-. Barclays, Deutsche Bank, Credit Suisse, Goldman Filtration Group is acquiring a company
Medical company HEALTHCHANNELS Sachs, Wells Fargo, SunTrust, Scotia, MUFG and that will be folded into its Industrial
increased pricing on the term loan portion US Bank. Technologies Group and Multisorb
OFûITSû53MûLOAN Pricing on the seven-year covenant-lite 4ECHNOLOGIESûFORû53MûACCORDINGûTOû
4HEûDEALûCOMPRISESûAû53MûlVE
YEARû loan has been cut to 175bp over Libor with a Moody’s.
REVOLVERûANDûAû53MûSEVEN
YEARûTERMû ûmOORûFROMûBPûWITHûAûûmOORûATû Ratings are B2/B corporate and facility.
loan. launch. The OID was tightened to par from
The term loan is now priced at 450bp over 99.75. KBR SEALS US$800m TLB
,IBORûWITHûAûûmOORûCOMPAREDûWITHûINITIALû Lenders receive six months of soft call
guidance of 400bp. The loan sold at a 99.5 protection at 101, as originally guided. Engineering, procurement and construction
OID. A ticking fee of 50% of the spread will kick company KBRûHASûlNALISEDûPRICINGûFORûTHEû
Instead of 101 soft call protection for six in 31 days following allocation, stepping up 53MûTERMûLOANû"ûTHATûWILLûINûPARTûBACKû
months, the loan now has 101 hard call to 100% of the spread 61 days following its acquisition of Stinger Ghaffarian
protection for 12 months. Additional lender- allocation until closing. Technologies and a joint venture.
friendly changes were made to the loan Ratings are Ba1/BB+ corporate and Baa3/ Bank of America Merrill Lynch led the
document. BBB- facility. covenant-lite seven-year loan, which priced
Proceeds from the Jefferies-led loan will be Insurance brokerage ASSUREDPARTNERS ATûBPûOVERû,IBORûWITHûAûûmOORûFROMû
USEDûTOûRElNANCEûEXISTINGûDEBTûANDûFUNDûAû lNALISEDûTERMSûFORûTHEûREPRICINGûOFûITSû opening guidance of 300bp-325bp with a 0%
DISTRIBUTIONûTOûlNANCIALûSPONSORû6ESEYû 53BNûTERMûLOANû"ûANDû53Mû mOOR
Street Capital Partners. add-on. It sold at a 99.5 discount with six months
Internet infrastructure company INTERNAP BAML led with Barclays, JP Morgan, Morgan of 101 soft call protection, as originally
CORPûSEALEDûAû53MûTERMûLOANûREPRICINGû Stanley, RBC and Macquarie. proposed.
that was led by Jefferies. 0RICINGûONûTHEûENTIREû53BNûTRANCHEû Proceeds from the term loan, along with
4HEûlRST
LIENûLOANûPRICEDûATûBPûOVERû WIDENEDûTOûBPûOVERû,IBORûWITHûAûûmOORû THOSEûFROMûAûNEWû53MûlVE
YEARûTERMû
,IBORûWITHûAûûmOORûATûPARû'UIDANCEûWASû compared with opening guidance of 300bp LOANû!ûANDû53MûREVOLVINGûCREDITû
550bp-575bp. WITHûAûûmOOR FACILITYûWILLûBEûUSEDûTOûlNANCEûTHEûPURCHASEû
The transaction also resets 101 soft call Pricing was previously 350bp with a 0% OFû3'4ûRElNANCEûEXISTINGûREVOLVERû
protection for six months. mOOR borrowings, fund KBR’s share in the Ichthys
Last month, the company agreed a 4HEûOFFERINGûPRICEûlRMEDûATûPARûFORûBOTHû /NSHOREû,IQUIlEDû.ATURALû'ASûPROJECTûINû
53MûINCREMENTALûTERMûLOANûTHATû new and existing lenders, versus opening Australia, and for general corporate
funded the company’s acquisition of guidance of 99.875-100 for existing lenders purposes.
SingleHop. and 99.75-99.875 for new lenders. #OMMITTEDûlNANCINGûINCLUDESûAû53Mû
The loan priced at 700bp over Libor with a The debt will mature in October 2024, in performance letter of credit.
ûmOORûINûLINEûWITHûTHEûEXISTINGûSPREAD line with the existing term loan B4, and Ratings are B1/B+ corporate and facility.
The add-on, which is fungible with the includes six months of soft call protection at TRAVELCLICKûHASûWRAPPEDûAû53MûlRST
EXISTINGûTERMûLOANûBROUGHTûTHEûlRST
LIENû 101. LIENûTERMûLOANûREPRICINGûANDûAû53Mû
TRANCHEûSIZEûTOû53M Proceeds from the incremental will be incremental term loan.
Soft call protection of 101 expires in April used to pay down borrowings under the The repriced loan was initially guided at
2018. revolving credit facility, fund acquisitions 53MûANDûTHEûADD
ONûATû53M
The loan sold at a 99.5 discount with six 4HEûlNALûTRANCHEûSIZESûINCLUDEûAû53Mû DOUBLEDûTHEûSIZEûOFûITSûlRST
LIENûTERMûLOANû"û
months of soft call protection at 101. lVE
YEARûREVOLVERûANDûAû53MûSIX
YEARû TRANCHEûTOû53MûANDûLOWEREDûPRICING
0ROCEEDSûWILLûBEûUSEDûTOûRElNANCEûTHEû term loan B. The term loan was initially 0ROCEEDSûFROMûTHEûLOANûWILLûlNANCEûTHEû
COMPANYSûEXISTINGûlXEDûANDûmOATING
RATEû PROPOSEDûATû53M company’s acquisition of Nasdaq’s public
lRST
LIENûTERMûLOANSûDUEûINû*UNEû 0RICINGûlRMEDûATûBPûOVERû,IBORûFORû relations and digital media services
Ratings are Ba3/B+ corporate and Ba3/BB- both tranches versus guidance of 375bp- BUSINESSESûASûWELLûASûTOûRElNANCEû7ESTSû
facility. BPû4HEûREVOLVERûHASûAûûmOORûANDûTHEû existing 2021 senior secured notes.
TERMûLOANûHASûAûûmOOR Pricing on the term loan B1 tranche
PLY GEM REBUILDS TLB The term loan sold at a 99 discount, as decreased during syndication to 350bp over
proposed at launch, while 101 soft call Libor with a 25bp stepdown at 3.5 times net
Building products maker PLY GEM HOLDINGS protection was increased to 12 months from SECUREDûLEVERAGEûANDûAûûmOORû!TûLAUNCHû
REVISEDûTERMSûFORûITSû53BNûTERMûLOANû"û the proposed six months. It will amortise at the spread was guided at 400bp, the same as
BACKINGûITSûTAKE
PRIVATEûBYûBUYOUTûlRMû ANûANNUALûRATEûOFûûINûTHEûlRSTûTWOûYEARSû on the existing term loan.
Clayton, Dubilier & Rice and merger with then at 3% thereafter. The deal sold at a 99.875 discount
Atrium Windows & Doors. The revolver is governed by a springing compared with guidance of 99.75-par. There
JP Morgan led the seven-year loan, which leverage covenant, while the term loan is is also 101 soft call protection for six
CLOSEDûATûBPûOVERû,IBORûWITHûAûûmOORû covenant-lite. months.
and 99.5 OID, compared with 300bp-325bp Corporate ratings are B3/B, while facility The Credit Suisse-led loan matures on
WITHûAûû,IBORûmOORûANDûû/)$ûATûLAUNCH ratings are B3/B+. October 10 2024, the same as the existing
Lenders will now receive 12 months of term loan.
101 soft call protection, extended from six GREENSKY INCREASES REFINANCING Ferry operator HORNBLOWER has completed
months originally. SYNDICATIONûOFûITSû53MûTERMûLOANû"û
Changes have also been made to the MFN, Payments technology company GREENSKY has backing its leveraged buyout by private
incremental facilities, restricted payments, SIGNEDûAû53MûTERMûLOANû"ûWHICHûWASû EQUITYûlRMû#RESTVIEWû0ARTNERS
EXCESSûCASHûmOWûSWEEPûASSETûSALEû INCREASEDûBYû53M UBS led with Barclays. The covenant-lite,
prepayments and Ebitda addbacks. JP Morgan led the seven-year deal, which seven-year term loan cleared at 450bp over
Proceeds from the term loan, along with PRICEDûATûBPûOVERû,IBORûWITHûAûûmOORû ,IBORûWITHûAûûmOORûANDûû/)$
53MûOFû#$2ûCASHûEQUITYûANDû and 99.75 discount, at the tight end of Lenders will receive six months of soft call
53MûOFûROLLEDûEQUITYûFROMû!TRIUMû 325bp-350bp guidance. protection at 101.
SHAREHOLDERSûINCLUDINGûPRIVATEûEQUITYûlRMû Lenders will receive six months of soft call 4HEûlNANCINGûWHICHûMARKSûTHEû
'OLDENû'ATEû#APITALûWILLûBEûUSEDûTOûlNANCEû protection at 101. company’s debut in the institutional
INûPARTûTHEû53BNûCOMBINEDûPURCHASEû Proceeds from the initial loan will be LEVERAGEDûLOANûMARKETûINCLUDESûAû53Mû
PRICEûOFû0LYû'EMûANDû!TRIUMûANDû53Mû USEDûTOûRElNANCEûTHEûCOMPANYSûEXISTINGû lVE
YEARûREVOLVINGûCREDITûFACILITY
of prepayment penalties, fees, and term loan, while the incremental proceeds Hornblower operates the New York ferry
expenses, according to Moody’s. will be used to fund a dividend to system.
4HEûlNANCINGûINCLUDESûAû53MûlVE
shareholders. Ratings are B2/B corporate and B2/B+
YEARûREVOLVINGûCREDITûFACILITYûANDûAû53Mû Ratings are B1/B+ corporate and facility. facility.
eight-year senior unsecured bond. Alternative asset manager GROSVENOR
Corporate and facility ratings are B2/B. CAPITAL MANAGEMENT has revised terms for its YUM! BRANDS NEARS REFI
(OMEûHEALTHCAREûBENElTSûMANAGEMENTû amendment to extend the maturity of its
services company CARECENTRIX made changes 53MûTERMûLOANû"ûBYûûMONTHS Fast food company YUM! BRANDS was
to its seven-year term loan backing a Goldman Sachs led with UBS. The company SCHEDULEDûTOûCLOSEûLASTûWEEKûAû53BNû
dividend recapitalisation. asked lenders to push out the maturity of 4ERMû,OANû"ûTHATûWILLûBEûUSEDûTOûRElNANCEû
The term loan, led by UBS with Deutsche the covenant-lite term loan B to March 2025 its existing Term Loan B due in 2023.
Bank and Citizens Bank, has been downsized from August 2023. The JP Morgan-led seven-year loan was
BYû53MûTOû53M 0RICINGûISûBPûOVERû,IBORûWITHûAûûmOORû GUIDEDûATûBPûOVERû,IBORûWITHûAûûmOORû
Pricing was increased to 450bp over Libor versus guidance of 275bp-300bp. ANDûnPARûOFFERINGûPRICE
WITHûAûûmOORûFROMûOPENINGûGUIDANCEûOFû The OID tightened to 99.75 from 99.5 for It is structured with six months of 101 soft
BP
BPûWITHûAûûmOORû4HEûû both existing and new lenders. call protection.
discount was unchanged. The six-month 101 soft call reset is Existing ratings are Ba3/BB corporate and
The loan will amortise at 2.5% per year. unchanged. "A"""nûFACILITY
4HEûlNANCINGûINCLUDESûAû53MûlVE
The amendment also covers an 18-month Yum! Brands owns more than 43,500
year revolving credit facility. extension of the maturity of the company’s restaurants worldwide, including KFC, Pizza
The company planned to use proceeds 53MûREVOLVINGûCREDITûFACILITYûDUEûINû Hut and Taco Bell.
FROMûTHEûORIGINALLYûPROPOSEDû53MûTERMû August 2021 to March 2023. Miner ARCH COAL was expected to close on
LOANûANDûROUGHLYû53MûINûCASHûTOûREPAYû 0RIVATEûEQUITYûlRMû(ELLMANûû&RIEDMANû 4HURSDAYûAû53MûLOANûTHATûWILLûBEûUSEDû
EXISTINGûDEBTûANDûPAYûAû53MûDIVIDENDû owns 29% of the company, while the to reprice existing Term Loan B debt.
to shareholders including Summit Partners, remaining 71% is owned by Grosvenor Credit Suisse led the deal, which was
as well as to cover fees and expenses, employees. EXPECTEDûTOûBEûPRICEDûATûBPnBPûOVERû
according to Moody’s Investors Service. The transaction is leverage neutral, with Libor, compared with the existing spread of
Ratings are B1/B corporate and facility. net leverage remaining at 2.8 times, based 325bp over Libor, at par with a 1% Libor
ALTISOURCE HOLDINGSûHASûlNALISEDûAû ONûROUGHLYû53MûOFûNETûDEBTûANDû mOOR
53MûSENIORûSECUREDûLOANûTHATûWILLûBEû 53MûûCONSOLIDATEDû%BITDA The covenant-lite loan will maintain its
USEDûTOûRElNANCEûEXISTINGûTERMûLOANû"ûDEBTû Communication and network March 2024 maturity and the 101 soft call
Morgan Stanley led. infrastructure company WEST CORP has protection for six months will be reset.
financing for Remington Kong, will form the security on the loan.
The facility has 17 borrowers and is dubbed
“Project Doris”.
US Gunmaker obtains bankruptcy funding from existing lenders Link, Asia’s largest REIT in terms of
market capitalisation, will have
Gunmaker REMINGTON OUTDOOR CO has obtained relationships. The bank said part of its about 90% of its assets in Hong
commitments for nearly US$300m from its consideration is to listen to its clients and Kong and 10% in China after the
existing lenders, including some of the biggest stakeholders, who have a wide range of opinions. divestment.
US banks, after new sources of funding dried up “We’re deeply concerned with the increasing The total portfolio value would
in the months leading up to its filing for Chapter amount of gun violence in our schools and BEûABOUTû(+BNûTHEûCOMPANYû
11 bankruptcy protection. communities,” the bank said. said in late November, when
During that time, the company’s investment The others, along with Remington, did not announcing the sale to the Gaw
bank Lazard approached more than 30 possible immediately respond to a request for comment. Capital consortium.
lenders, according to court documents. The company ran into trouble after borrowing
“The vast majority of lenders contacted, to ramp up production in 2016 in anticipation
however, indicated they were reluctant to provide of greater industry demand, according to court
financing to firearms manufacturers,” said Lazard filings.
banker Ari Lefkovits in the papers. The expectation of higher sales was in part RESTRUCTURING
Most of the banks providing the bankruptcy driven by fears of a Hillary Clinton presidency and
funding were lenders to Remington before its tighter gun controls. With the election of President
current financial problems, according to court Donald Trump, who has said he strongly supports UNITED STATES
records. Without the funds, Remington may have gun ownership, the firearms industry was stuck
been forced to go out of business and the banks with a glut of weapons and higher levels of debt. DAVID’S BRIDAL IN TALKS
could have seen their investment slump in value. Remington, which said in January it was nearly
The company and its investors have been out of cash, plans to tap the loans from the DAVID’S BRIDAL is in talks to hire investment
under heightened scrutiny after 17 people were banks to help pay corporate expenses, including bank Evercore as a restructuring advisor to
killed and 17 more were wounded in a school payroll, during its bankruptcy filing. SLASHûITSû53BNûDEBTûBURDENûASûTHEû53û
shooting in Parkland, Florida in February. Remington’s bondholders are also providing wedding gown retailer faces mounting
Remington filed for bankruptcy protection one some of the bankruptcy loan and will receive a competition.
day after hundreds of thousands of Americans stake in the company when it exits bankruptcy David’s Bridal is the latest retailer to
took to the streets to demand tighter gun control protection. struggle as internet upstarts offer
measures. Their identities were redacted in court increased transparency on prices,
Banks often sell troubled loans to hedge funds documents. turning its stores into showrooms
when a borrower is heading into bankruptcy, The company also asked the court to seal where customers come to try on gowns
but one source told Reuters that even as the the letters detailing the fees the lenders will only to buy them online. More than
Remington loans were heavily discounted, buyers earn from the loans, saying that the sums are û53ûBRICKS
AND
MORTARûRETAILERSûlLEDû
were scarce. commercially sensitive, according to filings in the for bankruptcy last year.
The company’s bankruptcy lenders include bankruptcy court in Wilmington, Delaware. David’s Bridal, which is known for its
Bank of America, Wells Fargo, JP Morgan and The court records also showed that affordable wedding gowns and bridesmaid
Deutsche Bank, according to court documents. Remington’s business faces new hurdles in the dresses and has over 300 US stores, has also
Remington disclosed the loan details in its wake of the Florida shooting. suffered due to declining marriage rates,
Sunday bankruptcy filing, which the company The company cited a risk to its business from according to S&P.
said will allow it to cancel US$775m of debt and restrictions placed on gun sales by retailers such One strategy the retailer may pursue
bring it out of Chapter 11 as soon as May. Walmart, Dick’s Sporting Goods and Kroger. to trim its debt is to ask lenders to
Smaller banks Regions Financial Corporation, Walmart accounted for 11% of Remington give it at least another year, until
BB&T Corp, Synovus Financial Corp and Fifth sales in 2017, according to the court documents. 2020, to turn around its business
Third Bancorp have also committed to help fund Remington also said sales could be hurt before repaying an approximately
Remington’s bankruptcy loans, court documents by more government regulation, including 53MûLOAN
show. An affiliate of investment manager enhanced background checks and a broader David’s Bridal is also liable for
Franklin Templeton Investments, another lender, definition of “dealer” under current gun laws. 53MûINûBONDSûCOMINGûDUEûINûû
is also providing funds. Remington said if the 1994 federal assault- 4HEûBONDSûAREûTRADINGûSIGNIlCANTLYû
Bank of America, Regions, Deutsche Bank, JP weapons ban were re-enacted it would have an below face value at around 53 cents
Morgan and Synovus declined to comment. adverse effect on the business. on the dollar.
BB&T declined to comment on its lending Tom Hals, Jessica DiNapoli David’s Bridal’s term loan is quoted at
about 86 cents on the dollar.
Much of the retailer’s debt stems from
Based on an interest margin of 185bp Hong Kong-based Gaw Capital Partners, a Clayton, Dubilier & Rice’s leveraged buyout
over Hibor, banks joining as MLABs get PRIVATE
EQUITYûREAL
ESTATEûlRMûLEADSûTHEû of the company in 2012, a deal that was
top-level all-in pricing of 200bp, via an consortium that agreed to buy the properties VALUEDûATûABOUTû53BN
upfront fee of 40bp and a 5bp from Link REIT in late November for David’s Bridal also has 11 stores in Canada
underwriting fee. (+BNûEVERWELLCITY is the acquiring entity. and four in the UK.
18 years
KIM BALT BECAME HEAD OF
services, MEITUAN-DIANPING, has tapped Bank of
America Merrill Lynch, Goldman Sachs and
Morgan StanleyûTOûWORKûONûAû(ONGû+ONGûmOATû
institutions, is expected to raise US$2bn–
$3bn. Ping An announced in February that
OneConnect raised US$650m in a private
SYNDICATE AT ING IN FEBRUARY 2000. that could see it list as early as this year. lNANCINGûEXERCISEûWHICHûVALUEDûTHEûARMûATû
BY FAR THE LONGEST SERVING HEAD OF Meituan-Dianping, an online platform for US$7.4bn.
EQUITY SYNDICATE IN EUROPE, HE ordering food and booking movies and Lufax, meanwhile, plans to raise US$5bn–
IS MOVING TO A NEW SENIOR ADVISER restaurants, recently started preparatory $6bn from an IPO that values the company
ROLE IN ECM work with the three banks for the IPO, at US$40bn–$50bn.
according to people close to the deal.
TIANQI LITHIUM PLANS HK IPO
US$257.78
TESLA SHARES SLUMPED LAST
No formal mandate has been awarded
yet, they have said.
In October, Meituan-Dianping was valued TIANQI LITHIUMintends to raise at least US$1bn
WEEK AS THE COMPANY WAS HIT BY at US$30bn following a US$4bn funding from a proposed Hong Kong IPO, according
A DOWNGRADE BY MOODY’S AND A round led by Tencent Holdings. to people close to the plans.
FEDERAL INVESTIGATION INTO THE FATAL Meituan-Dianping had been considering The Shenzhen-listed lithium producer
CRASH OF ONE OF ITS CARS. SHARES an IPO in the US as soon as this year. The recently secured board approval to sell no
CLOSED ON WEDNESDAY AT US$257.78, company has however shifted focus to Hong more than 20% of its enlarged capital and
DOWN 18.6% FOR THE WEEK AND PUTTING Kong as the city’s exchange operator is there is a 15% greenshoe.
SHARES BACK TO A LEVEL LAST SEEN IN about to allow dual-class shares. As of March 29, Tianqi Lithium had a
MARCH 2017 Led by serial entrepreneur Wang Xing, market capitalisation of Rmb58.72bn
US$
Meituan-Dianping’s backers also include (US$9.34bn).
400
Sequoia Capital, Singaporean state investors 4HEûCOMPANYûPOSTEDûAûûNETûPROlTûOFû
380
GIC and Temasek Holdings, as well as DST Rmb2.15bn, representing 41.86% year-on-
360
Global and the Canada Pension Plan year growth.
340
Investment Board. Tianqi’s move came after rival Ganfeng
320
Lithium’s Hong Kong listing plan.
300
PING AN MOVES FAST Ganfeng, which is also listed in Shenzhen,
280
lLEDûAûLISTINGûAPPLICATIONûTOûTHEû3TOCKû
260 Ping An Insurance has started work on a Exchange of Hong Kong in February. The
240 PROPOSEDû(ONGû+ONGû)0/ûOFûlNANCIALû company planned to raise at least US$1bn in
220 technology arm ONECONNECT FINANCIAL the second quarter, a person close to the
200 TECHNOLOGY this year with the help of deal told IFR earlier.
22/12/ 22/04 22/08 22/12
Goldman Sachs and JP Morgan. Tianqi plans to use the proceeds to
2016 2017
The Chinese insurer has accelerated the expand output, enhance research and
plan to list OneConnect because the development, fund investment projects and
Two classes
SINGAPORE EXCHANGE WILL ALLOW
targeted Hong Kong IPO of online wealth-
ASIA-PACIFIC EQUITIES
replenish working capital.
78%
ICICI SECURITIES ENDED ITS IPO ONLY
5 UBS
6 Huatai Securities
7 Citic
21
9
11
4,260.07 6.4
2,075.44
1,728.58 2.6
3.1
5 UBS
6 Huatai Securities
7 Citic
19
9
11
4,019.37 6.8
2,075.44 3.5
1,728.58 2.9
78% SUBSCRIBED – BUT STILL CLOSED 8 Sumitomo Mitsui Finl 23 1,485.79 2.2 8 Credit Suisse 12 1,335.85 2.2
THE DEAL. IT IS THE SECOND TIME IN A 9 Nomura 29 1,450.10 2.2 9 Axis Bank 9 1,314.35 2.2
FORTNIGHT THAT AN INDIAN IPO HAS 10 Mizuho 17 1,387.18 2.1 10 China Securities 9 1,147.41 1.9
FAILED TO ATTRACT ENOUGH DEMAND Total 637 66,128.01 Total 575 59,420.09
TO SELL ALL SHARES OFFERED THOUGH Including all domestic and international deals and rights issues Including all domestic and international deals and rights issues
NEITHER DEAL CANCELLED Source: Thomson Reuters SDC code: C4a1 Source: Thomson Reuters SDC code: C4a2
Shareholders will review the proposal on narrowing from a loss of Rmb1.47bn in The paper products company plans to
April 24. 2016. sell no more than 62m shares, or about a
It had average monthly active users of ûFREE
mOATû)TûWILLûSETûTHEûPRICEûONû!PRILû
TRIO PRICE US FLOATS LOW 25.2m in the fourth quarter of 2017. 2 and start bookbuilding on April 9.
Proceeds will be used mainly for paper
Three Chinese companies priced their US CZB SEEKS EXTENSION FOR IPO production and a thermal power project.
IPOs at competitive valuations amid volatile
market conditions. (See News.) CHINA ZHESHANG BANK will seek shareholder
Video-streaming site BILIBILI raised approval for a 12-month extension to the INDIA
US$483m in a NYSE IPO of 42m primary validity period for its proposed Shanghai IPO
American depositary shares at US$11.50 of up to 4.49bn A-shares, or about 20% of its MEDI ASSIST HIRES TRIO FOR IPO
each, representing P/E ratios of 28.3 for 2019 enlarged capital.
and 13.7 for 2020. The existing shareholder approval will MEDI ASSIST HEALTH SERVICES has hired Axis,
Books were multiple times covered on expire on May 30. Edelweiss and ICICI Securities for an IPO later
strong demand from long-only funds and The Hong Kong-listed lender stands to this year, expected to raise Rs10bn–Rs12bn
technology specialists. raise about Rmb17bn (US$2.71bn) from the (US$154m–$185m), according to people
There is a 15% greenshoe of 6.3m primary IPO, based on the March 27 closing price of familiar with the plans.
ADS. HK$4.79, equivalent to Rmb3.83. The Indian third-party administrator of
Bank of America Merrill Lynch, JP Morgan and Citic Securities is the sponsor and joint healthcare services is one of India’s largest
Morgan Stanley were joint bookrunners on bookrunner with CICC. with a network of more than 4,750
the IPO. CZB plans to use the proceeds to hospitals across 20 states. The company
Bilibili provides Japanese and Chinese strengthen its Core Tier 1 capital. provides services such as claims
ANIMATIONSûlLMSûANDû46ûDRAMASûANDûALSOû The IPO still needs approval from the administration and settlement, cashless
allows users to upload self-generated videos. China Securities Regulatory Commission. hospitalisation, reimbursement,
ONESMART INTERNATIONAL EDUCATION, IDENTIlCATIONûCARDSûHOSPITALûNETWORKSû
meanwhile, raised US$179m from its NYSE GOLDWIND TO SELL RIGHTS pre-authorisation, pre-policy medical
IPO of 16.3m primary ADS at the bottom of checks and specialised value-added
the US$11–$13 price range, representing a XINJIANG GOLDWIND SCIENCE AND TECHNOLOGY has services for corporate customers.
forecast 2019 P/E of 19.6. secured board approval for a proposed A/H Bessemer Venture Partners, IDFC
There is a 15% greenshoe of 2.45m rights issue of up to Rmb5bn (US$795m). Alternatives and Vikram Chhatwal are
primary ADS. The wind turbine manufacturer plans to among the company’s shareholders and
Deutsche Bank, Morgan Stanley and UBS led sell up to 711m shares (81.7% A/18.3% H) on are expected to be sellers on the IPO,
the IPO. AûYET
TO
BE
lNALISEDû
FOR
ûBASIS which will involve only secondary shares.
OneSmart is a Shanghai-based K-12 after- Proceeds will be used to fund two wind
school education company involved in farm projects, for working capital and to MIDHANI IPO 1.21 TIMES SUBSCRIBED
tutoring and education tourism services. repay debts.
Hotel chain operator GREENTREE HOSPITALITY The issue still needs approval from MISHRA DHATU NIGAM (Midhani) saw its
GROUP raised US$143m from a smaller-than- shareholders and regulators. Rs4.2bn (US$64m) IPO 1.21 times
planned IPO of 10.2m primary ADS at US$14 GUANGHUI ENERGY raised Rmb3.86bn from a subscribed when books closed on March
each, down from the originally planned 3-for-10 issue of 1.52bn rights shares, 23.
19.4m ADS. representing about 96.7% of the total on The institutional tranche was 1.96 times
Bank of America MerrillLynch, Morgan Stanley offer. The price was set at Rmb2.55, or a covered, the high net-worth investor piece
and UBS were joint bookrunners. discount of 39.1% to the pre-deal spot. 12% covered and the retail 72% covered.
China Securities was sole bookrunner. The Indian government sold 46.8m
INKE FILES FOR HONG KONG IPO 0ROCEEDSûWILLûBEûUSEDûFORûAûLIQUElEDû shares, or 25% of the specialised metal
natural gas project and for debt repayment. alloys maker, at the top of the Rs87–Rs90
Live-streaming provider INKEûHASûlLEDûFORûAû price range.
Hong Kong IPO with CICC, Citigroup and CSRC APPROVES THREE FLOATS IDBI Capital and SBI Capital were the
Deutsche Bank as joint sponsors. bookrunners.
IFR reported earlier in March that the The China Securities Regulatory
company planned to raise about US$200m– Commission has approved three IPO ICICI SECURITIES IPO NETS LESS
$300m from the listing. applications, targeting combined proceeds
Inke’s IPO comes after a marketing of Rmb2.6bn (US$413m). Of the three, WG said its IPO raised Rs35bn
ICICI SECURITIES
agency last year abandoned plans to acquire TECH (JIANGXI) is pre-marketing its Shanghai (US$537m), as opposed to its targeted
AûSIGNIlCANTûSTAKEûINûTHEûCOMPANY IPO of about Rmb789m, with Shengang Rs40bn.
Last May, Shenzhen-listed Shunya Securities as sponsor. The overall weak markets and concerns
International Brand Consulting (Beijing) The photoelectric glass manufacturer over expensive valuations have resulted in
announced it would buy a 48.2% stake in plans to make available not more than 24m tepid responses to recent Indian IPOs.
Beijing Milaiwu Network Technology, which SHARESûFORûAûûFREE
mOATû)TûWILLûSETûTHEûPRICEû When books closed last Monday, ICICI
owns Inke, for Rmb2.89bn (US$457m). on April 2 and start bookbuilding two days Securities’ 44.2m-share public offer received
Shunya said last December that it had later. Proceeds will be used for production, as bids for 34.7m, or 78% of the total.
abandoned the plan, without giving any well as research and development. Earlier, ICICI Securities sold 33m shares to
reasons. XIANHE CORP is also pre-marketing its a group of anchor investors. Including the
!CCORDINGûTOûAûREGULATORYûlLINGû)NKEû Shanghai IPO of about Rmb843m, with Citi anchor tranche, the 77.2m-share IPO was
posted a loss of Rmb239m in 2017, Orient Securities as sponsor. 88% subscribed.
On March 8, Sanlam and local rival Proceeds from the capital increase will
SERBIA Santam, said they would acquire 53.37% of lNANCEûPROPERTYûACQUISITIONSûANDûBEûUSEDû
Saham Finances for around US$1bn, taking for investment in the current property
BELGRADE GEARS UP FOR FIRST their joint holding to 100% as part of a plan portfolio.
IPO IN ALMOST 80 YEARS to become a pan-African insurance group. There were acceptances for 10.75m shares
The placing was launched immediately out of 11.25m offered on a 7-for-1 basis at
Bankers will have to dust off their Serbian after the close, and there was a covered SKr90 per share. D Carnegie shares opened
phrasebooks now that the Belgrade Stock message at 4:45pm London time. Wednesday at SKr122.80 and closed at
Exchange has launched its IPO Go! 3ANLAMûANDû3ANTAMûlRSTûACQUIREDûAûû SKr123.
programme, which could see the listing of stake in Saham in February 2016 and then Swedbank, in cooperation with Kepler
three new companies before the end of the acquired an additional 16.63% stake in May Cheuvreux, was sole bookrunner.
year. 2017.
)NûAûVIDEOûlLEûPOSTEDûONûTHEûWEBSITEûOFû Deutsche Bank and JP Morgan were joint
news agency Tanjug last Tuesday, CEO bookrunners. SWITZERLAND
Sinisa Krneta said the programme is
designed to strengthen the country’s HNA REFUSES TO BUDGE ON
INVESTMENTûPROlLEûANDû)0/ûPIPELINEû4HEû SWEDEN GATEGROUP VALUATION
last Belgrade IPO was in 1940.
The project is supported by the BYGGHEMMA, BIG DISAPPOINTMENT HNA gave up on its ambitions to list airline
Shareholder Special Fund (SSF) of the catering business GATEGROUP on Monday, just
European Bank for Reconstruction and Home furnishings and building supplies a few hours before bookbuilding was due to
Development (EBRD) and the Belgrade business BYGGHEMMA disappointed on debut close. In agreement with its cash-stricken
Stock Exchange, he said. last Tuesday, opening above the SKr47.50 Chinese conglomerate owner, Gategroup
As part of the project, IPO pricing at SKr48, but swiftly drifting said that there had been a “gap in valuation
PricewaterhouseCoopers, through its below SKr45. under current market conditions”.
OFlCESûINû"ELGRADEûANDû7ARSAWûWILLû By the early afternoon, the stock hit an A banker involved said that there had
support the exchange in talks with intraday low of SKr43 and dropped further been a very good deal but that HNA
selected private companies. for a SKr42 close, down 11.5%. ultimately had held a different view on
4HEûlRSTûPUBLICûOFFERINGûISûLIKELYûTOûBEûMK Approximately 6.95m shares changed valuation. HNA needs the cash, making the
FINTEL WIND, which intends to list its shares hands, representing just under a quarter of decision to cancel all the more unexpected,
in Belgrade in May, according to CEO the IPO offering. but it does perhaps suggest that investors’
Tiziano Giovannetti. The stock closed at SKr41 on approach to a forced seller situation
“The stock market listing brings many Wednesday. changed the dynamics.
advantages and enables a more stable and The poor performance was surprising Gategroup was chasing a SFr2.1bn-
lRMûlNANCIALûSTRUCTUREûWHILEûTHEû considering that the deal could have priced SFr2.6bn (US$2.22bn-$2.75bn) valuation and
experience of Fintel Energia can serve as a at the top of SKr45-SKr50 price guidance the SFr867.52m-SFr1.138bn deal size.
benchmark for the future development of previous Thursday, with the company and One IPO investor said that the valuation
the Belgrade bourse,” Tiziano is reported owner FSN Capital opting to price at the presented was “extremely expensive” and
to have said. mid-point to deliver a positive aftermarket. he had dropped out of the deal early on, but
MK Fintel Wind, a 46/54 joint venture Pricing of SKr47.50 represents a deal size another investor said that the valuation was
between MK Group and Fintel Energia of SKr1.408bn (US$171m) and an initial fair and that the business was stronger than
Group, was set up in 2008 and already market capitalisation of SKr5.1bn. The when it had been bought by HNA.
operates two wind farms in Serbia, with a PRIMARYûPORTIONûWASûlXEDûATû3+RM It is unclear whether Gategroup’s
combined installed capacity of 16.5 MW. Cornerstone investors ATP and Creades cancellation will affect HNA’s plans to list
Last May, the CEO said that the company acquired an aggregate 5.26m shares in the Swiss cargo and ground handling company
planned to offer 20%-40% of MK Fintel IPO, representing SKr250m of the total. SWISSPORT this year.
Wind to raise about €60m. A 15% secondary greenshoe - now only to Credit Suisse and UBS were joint global
be exercised in part or not at all - would lift coordinators and joint bookrunners with JP
THEûFREE
mOATûTOûûFROMûAûBASEûDEALûSIZEûOFû Morgan. Berenberg, ING, Santander and UniCredit
SOUTH AFRICA 27.6%. were co-bookrunners. Lazard advised.
The deal was more than three times
SANLAM FINANCES MOROCCAN COVEREDûANDûTHEREûWASûSIGNIlCANTûZEROINGû SENSIRION UP 27% AND FULLY
BUY-OUT with approximately 35% of orders binned. EXERCISES GREENSHOE
The top 20 orders took approximately 80%
Financial services group SANLAM placed of the deal, with long-only accounts SENSIRION shares closed more than 27% above
new shares in an accelerated bookbuilding REPRESENTINGûMOREûTHANûûOFûTHEûmOAT the SFr36 IPO price last Monday, following
on Tuesday evening to raise R5.7bn Carnegie was sole bookrunner and joint three days of trading. Unsurprisingly, the
(US$486.76m) to part-fund its joint bookrunner with Berenberg and SEB. 15% primary greenshoe on the Swiss sensor
acquisition of Moroccan company Saham MAKERSû3)8ûmOATûWASûFULLYûEXERCISEDûONû
Finances. D CARNEGIE REPORTS 95.5% Tuesday morning.
The Johannesburg-listed company placed FUNDRAISING TAKE-UP As a result, the deal size rises to a total of
65.52m new shares at R87 per share, which SFr318m (US$335.5m), with the primary
corresponds to a 5% discount to Tuesday’s Real estate group D CARNEGIE reported a 95.5% fundraising increasing to SFr96.6m from
R91.61 closing price. The shares represent take-up on Wednesday for its SKr1.013bn 3&RMûPREVIOUSLYû4HEûFREE
mOATûISûLIFTEDûTOû
around 3.25% of the existing share capital. (US$122m) rights issue. 58.33% from 54.85% on the base deal.
bearish look set to pose a challenge to equity The company’s so-called ACTR drugs At Home shattered fourth-quarter
issuers in the short term. incorporate antibodies that steer cancer expectations by reporting EPS of 50 cents
A number of IPO aspirants are positioning killing T-cells directly to the tumour. and revenue of US$293.7m, beating Street
to launch deals but none are on the calendar There have been some issues regarding estimates of 35 cents and US$286.4m. The
to price in the week ahead. Among those the treatment’s safety. The FDA put a company is guiding for 2019 EPS to grow by
that could launch IPOs near-term are clinical hold on a Phase I trial in December 30%–36% to US$1.18–$1.24 on 21%–22%
biotech Alzheon, software company Zuora after two patients died during a Phase I revenue growth to US$1.15bn–$1.16bn.
and the LatAm-based former DirecTV arm study, but removed the hold in February. “That they are able to continue to grow
Vrio. Unum expects to have data to report from without an e-commerce strategy is
Before these deals price, bankers and the ongoing study before the end of this amazing,” one banker involved in the
issuers will witness Spotify’s direct listing year. underwriting syndicate told IFR. “This is
experiment, a deal that sees no capital being really a unit growth story.”
raised and leaves nearly all of the music- BAIN OUT OF BRIGHT HORIZONS At Home traded on Thursday at US$32.46.
streaming service’s existing shareholders
free to sell day one. 0RIVATEûEQUITYûlRMû"AINû#APITALûOFmOADEDûITSû CENTERBRIDGE CANCELS AMERICAN
One banker said he expected Spotify to remaining 7.6% stake in child care operator RENAL SALE
trade “like a beast in its own universe” with BRIGHT HORIZONS FAMILY SOLUTIONS on Monday
early trading dictated by retail investors night. A collapse in the share price of AMERICAN
familiar with the product. Morgan Stanley purchased 4.6m Bright RENAL ASSOCIATES prompted sponsor
A congested week due to Friday’s trading Horizons shares, 4.5m of which came from Centerbridge Capital Partners to abandon a
holiday did not stop some big deals from Bain, before reoffering them to investors at planned US$100m sell-down of its
pricing in the past week, including the US$102.70, a 1.9% discount to last sale, to controlling stake in the kidney dialysis
53BNû)0/ûOFû#HINASûANSWERûTOû.ETmIXû raise US$473m. centre operator.
iQiyi, a US$1.4bn forward sale of equity by Bright Horizons helped facilitate the deal American Renal’s shares dived 16.4% from
Dominion Energy and a US$1bn M&A by repurchasing 800,000 of the shares. US$21.32 to US$17.83 while a syndicate led
lNANCINGûFROMû'ENERALû-ILLS The offering still took some digesting, the by Bank of America Merrill Lynch, JP Morgan and
All IPOs except “customer lifecycle stock tumbling 6.5% to US$97.86 in SunTrust Robinson Humphrey marketed the
experience” provider IBEX priced, though Tuesday’s aftermarket. offering across two sessions during the
three of the week’s Chinese newcomers Though this implies a distribution week.
traded down on debut. shortfall and potential losses for the Centerbridge had been looking to sell
In terms of follow-on activity, many underwriter, banks typically use hedging 4.5m out of a 5m-share offering to cut its
issuers had to absorb steep share price falls strategies to limit their risk. stake to 40.4% from 54.2%. This would have
to consummate their stock sales, though Bain Capital has now completed an BEENûITSûlRSTûSELL
DOWNûSINCEûITûTOOKû
there were a few casualties. American Renal incredibly lucrative monetisation process American Renal public in April 2016.
Associates was the most notable withdrawal. since buying the company for US$1.3bn in Bankers close to the deal had warned after
The decline of the DJIA and several 2008 and taking the company public at THEûlRSTûDAYûOFûMARKETINGûTHATû#ENTERBRIDGEû
volatile sessions remain an obstacle to deal- US$22 a share in 2013. would not accept a price below the levels
making though some types of deals such as The last Bright Horizons block comprised the stock was then trading at of around
blocks will be muted around the quarter end 4m shares (with a 1m share buyback) US$18.40, hoping it would recover on the
in any case. OFmOADEDûATû53ûEACHûINû.OVEMBERû second day of marketing.
and there has been a string of incremental It proved more than an idle threat to
UNUM CALLS ON INSIDERS FOR sell-downs since the IPO. discourage short-sellers.
IPO SUPPORT American Renal announced just ahead of
AT HOME GROWS SHAREHOLDER BASE pricing late on Wednesday that it was
Early stage biotech UNUM THERAPEUTICS raised withdrawing the sale due to market
US$69.2m for its new twist on cancer cell Sponsors AEA Investors and Starr conditions and because it was not in the
therapy through its IPO. Investments elected to market for one day interests of its shareholders.
Morgan Stanley and Cowen priced a offering an all-secondary sale of 6m AT HOME shares
of 5.77m shares at US$12, the bottom of the last week. That is just 9.7% of outstanding US EQUITIES
US$12-$14 marketing range. for the home decor retailer, but enough to BOOKRUNNERS: 1/1/2018 TO DATE
This was despite good levels of result in an increase of more than 40% in the Managing No of Total Share
oversubscription and insider commitments STOCKSûFREEûmOAT bank or group issues US$(m) (%)
for up to US$37.5m of the deal. Bank of America Merrill Lynch, Goldman Sachs 1 Morgan Stanley 43 8,620.24 16.8
Unum’s founder Dario Campana is the and Jefferies priced a fully sized deal at 2 JP Morgan 47 6,041.19 11.8
company’s largest shareholder with a 21.7% US$30.00, a slim discount to the last sale 3 Goldman Sachs 40 5,590.31 10.9
stake, followed by Atlas Venture (13.9%) and price of US$30.56 and an all-in concession of 4 Barclays 27 5,236.51 10.2
Fidelity Investments (9.9%). 4.3%. 5 Citigroup 32 4,228.38 8.3
Seattle Genetics, a collaborative partner, The two sponsors reduced their holdings 6 BAML 35 3,446.89 6.7
invested US$5m in a concurrent private to 23.4m and 17.8m shares respectively, 7 Deutsche Bank 18 2,570.18 5.0
placement. leaving them with a still-sizable combined 8 Credit Suisse 23 2,304.51 4.5
Unum is using the money to continue a 75% stake. 9 RBC 19 2,098.07 4.1
Phase I trial of a new type of cell therapy At Home’s blowout quarter reported on 10 UBS 14 1,393.03 2.7
drugs. Similar to T-cell developers, the Friday also motivated the sellers to market Total 203 51,223.77
company is seeking to use genetically the deal, giving underwriters more time to Including all domestic and international deals and rights issues
engineered cells to destroy cancer cells. get the story out to new investors. Source: Thomson Reuters SDC code: C3r
migraine headache drug developer’s Dell will be hoping for a better reception DOCUSIGN SHAPES AS NEXT UNICORN IPO
US$50m stock offering. than its last IPO effort, SecureWorks in
Over 30% of Zosano shares were out on April 2016. Digital signature software company DOCUSIGN
borrow as of March 15 while the stock was SecureWorks, a still loss-making cyber PUBLICLYûlLEDûFORûANû)0/ûTHATûCOULDûLAUNCHûINû
trading at US$15.50. BTIG priced 10m security provider, went public at US$14.00 April.
shares on Wednesday night at US$5.00, but has not seen those levels since the DocuSign is potentially shaping as the
INDICATINGûAûûPROlTûFORûTHEûSHORTS early months after the IPO, trading as low NEXTûHOTûhUNICORNvû)0/ûCONlRMINGûITSû
Zosano’s funding need was well known. as US$7.86 earlier this month. ambitions to go public three years after a
The company had just US$11m of cash at US$300m private funding round valued it at
the end of 2017 and its ability to sustain CERIDIAN HCM, SMARTSHEET FILE US$3bn.
operations is a going concern for the FOR NEAR-TERM IPOS The company generated US$381.5m of
company’s accountants. revenue last year, up 52% on the prior year
The company is looking to fund a long- Dropbox’s spectacular debut on March 23 and an impressive pace of growth
term safety study of its Zotrip patch, which has had the desired effect in rejuvenating considering its scale.
provides an extended release dose of the the tech IPO market, notwithstanding In the same period, DocuSign made a net
drug zolmitriptan for treating migraine broader pressure on stock prices in the loss of US$115.4m and generated adjusted
headaches. sector. Ebitda losses and negative operating cash
Proceeds extend the company’s cash to Last Monday saw CERIDIAN HCM and ANDûNEGATIVEûFREEûCASHûmOWûTHOUGHûITûWASû
US$59m, two years’ funding at the current SMARTSHEET join Pivotal Software in CLOSEûTOûOPERATINGûCASHûmOWûBREAKEVEN
BURNûRATEû)TSûlRSTûDATAûCUTûFROMûAûSIX
SHOWINGûTHEIRûHANDûPUBLICLYûlLINGûFORû)0/Sû Founded in 2003, DocuSign has a
month safety study is expected in the that could come in April. subscription-based cloud-based platform
fourth quarter. Investors have proved hungry this year used by 350,000 companies and hundreds of
for anything related to cloud or millions of users.
TECH IPOS READY FOR APRIL LAUNCH, subscription software, and bankers are !NûEIGHT
lRMûSYNDICATEûLEDûBYûMorgan
MARKETS WILLING happy to oblige. The caveat is that bankers Stanley and JP Morgan are slated to lead the
have long predicted a tech IPO revival only offering.
Dell Technologies/VMWare-backed PIVOTAL to be sorely disappointed, which is why Earlier this year and following a lengthy
SOFTWARE, a provider of “cloud-native” some prefer to believe it when they see it. search, DocuSign hired Dan Springer, the
software used by software developers, #ERIDIANû(#-ûlLEDûFORûAû53Mû)0/û former CEO of Responsys, to become its
PUBLICLYûlLEDûONû-ARCHûûFORûANû)0/ûTHATû WITHûAû
lRMûSYNDICATEûLEDûBYûGoldman CEO.
could come as early as next month. Sachs, JP Morgan, Credit Suisse and Deutsche $OCU3IGNûlRSTûlLEDûCONlDENTIALLYûONû
Morgan Stanley, Goldman Sachs and Bank. January 22.
CitigroupûAREûSLATEDûTOûLEADûANû
lRMû Ceridian is a sponsor-backed company
underwriting syndicate. WHOSEûmAGSHIPûCLOUDû(#-ûPLATFORMûISû HOMOLOGY FOCUSES ON INSIDER
Previous reports have speculated the IPO called Dayforce. SUPPORT FOR IPO
could value Pivotal at US$5bn-$7bn. This Like Pivotal, Ceridian is more mature
would imply a US$500m-plus offering (as than the typical tech IPO and will be going After upsizing and pricing its US$144m IPO
opposed to the US$100m placeholder). public having demonstrated success in at the top of the range, HOMOLOGY MEDICINES
Pivotal’s plans are separate from Dell’s transitioning to a SaaS/cloud software delivered a powerful debut only to fade as its
own recent deliberations about returning business model. opening session wore on.
to public markets four years after founder Ceridian has proved a long haul for Homology opened at US$23.00 on
Michael Dell took it private in league with major shareholders Thomas H. Lee and Wednesday and ticked to a high of
sponsor Silver Lake. Fidelity National Financial/Cannae (Cannae US$24.40, only to fall to US$18.66 at the
Pivotal was once a joint venture of is a publicly traded company, recently split close, a respectable 16.6% above offer but
VMware, EMC and General Electric but off from Fidelity National). They bought hardly spectacular.
came under Dell’s control after its the business way back in pre-crisis era Bank of America Merrill Lynch, Cowen and
US$67bn EMC acquisition in 2016. 2007, the long holding period attesting to Evercore found takers for 9m shares, up from
Pivotal grew revenue 22% to US$509.4m how much they have had to do to make it 6.7m at launch, at US$16.00 each on
last year, but recorded a net loss of work. Tuesday night.
US$163.5m. The turning point was Ceridian’s That only 2.9m of the shares that were
Even after adding back stock comp and purchase of Dayforce in 2012. This has sold changed hands pointed to tight
intangible asset amortisation, it is still bolstered revenue growth and led to a allocations.
deep in the red. greater proportion of recurring/cloud Orders materialised quickly enough to
Since shifting its focus to its revenue in its sales mix (more than half of accelerate pricing by one day. The deal was
subscription-based “Pivotal Cloud total revenue). then upsized on Tuesday morning as an
Foundry” platform, Pivotal’s subscription Smartsheet is more of a traditional accommodation for new investors as
customer count has grown to 319. software IPO with US$111.3m of revenue insiders’ original commitments for up to
Subscription revenue grew 73% to US$259m last year, an impressive growth rate of 66%, US$50m of the shares went unchanged.
last year, a year in which these recurring an excellent gross margin of 81%, a good “Management wanted to reward its
revenues overtook services revenue. spread of customers (92,000) and a high shareholders,” a syndicate banker that
No doubt this point will be central to retention rate. worked on the deal told IFR. “They also liked
any IPO pitch given the high multiples Morgan Stanley, JP Morgan, Jefferies and RBC some of the long-only institutions that took
investors are attaching to SaaS revenues. Capital Markets are slated to lead a seven- one-on-one meetings.”
0IVOTALûlRSTûlLEDûCONlDENTIALLYûONû lRMûUNDERWRITINGûSYNDICATEûONûTHEûDEALû Conversion from one-on-one meetings
December 15. nominally sized at US$100m. with the management team was about 75%,
The contents of this publication, either in whole or part, may not be reproduced, stored in a data retrieval system or transmitted in any form or by any means, electronic, mechanical,
PHOTOCOPYINGûRECORDINGûORûOTHERWISEûWITHOUTûWRITTENûPERMISSIONûOFûTHEûPUBûLISHERSû!CTIONûWILLûBEûTAKENûAGAINSTûCOMPANIESûORûINDIVIDUALûPERSONSûWHOûIGNOREûTHISûWARNINGû4HEû
INFORMATIONûSETûFORTHûHEREINûHASûBEENûOBTAINEDûFROMûSOURCESûWHICHûWEûBELIEVEûTOûBEûRELIABLEûBUTûISûNOTûGUARANTEEDû3UBSCRIPTIONSûTOû)&2ûAREûNON
REFUNDABLEûAFTERûTHEIRûCOMMENCEMENTû
ISSUEûDATEûÊû4HOMSONû2EUTERSûû2EGISTEREDûASûAûNEWSPAPERûATûTHEû0OSTû/FlCEû2EGISTEREDû/FlCEû4HOMSONû2EUTERSû,TDûû3OUTHû#OLONNADEû#ANARYû7HARFû,ONDONû%û%0û
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û5NAUTHORISEDûPHOTOCOPYINGûISûILLEGAL
Adira Dinamika Multi Finance 58 Deutsche Bank 5, 17, 20 Kering 30 SDP Finco 56
Adtalem Global Education 65 Dezhan Healthcare 83 KfW 27 Select Medical Corp 67
Advanced Discovery 64 DocuSign 81 KKR 31 Sensirion 77
AerCap Holdings 60 Dole Food Co 68 Land Securities 30 Shandong Hi-tech Innovation 46
Agence France Tresor 27 Dominion Energy 63, 73 La Trobe Financial 40 Shandong Iron & Steel Group 46
Agile Group Holdings 47 Dongling Group 46 Lawson 58 Shanghai Bikong Longxiang 83
AIA Group 48 Downer EDI 56 LegalShield 65 Shanying International 83
Akbank 61 Dubai Aerospace Enterprise 61 Lemon Tree Hotels 76 Shearer’s Foods 65
Akelius Residential Property 29 Duff & Phelps 68 Lenovo Group 56 Shougang Group 47
Akzo Nobel 9, 55 Elysium Healthcare 70 LG Display Taiwan 59 Siam Makro 76
Albaraka Bank 61 EmployBridge 65 Liberty Financial 34 Si Chuan Province JuYang Group 46
Altisource Holdings 69 Eskom 49 Link Real Estate Investment Trust 71 Smartsheet 81
Alvean Sugar 60 Euroclear Investments 32 Logan Property Holdings 48 Societe Generale 13
AMAG Leasing 38 European Financial Stability Facility 29 Loparex International Holding 68 Solusi Tunas Pratama 58
American Renal Associates 79 European Stability Mechanism 29 Lufax 74 South Africa 49
American Tower 39 Everbright Securities 41 Mackay Sugar 36 Southeastern Grocers 35
Amneal Pharmaceuticals 70 Everwell 72 MacroGenics 80 SouthernCarlson 70
Arch Coal 69 Fiat Chrysler Automobiles 60 Mannai Corp 12 Spotify 78
Aspen Dental Management 65 Filtration Group 67 McDermott International 10, 66 Spotify Technology 8
AssuredPartners 67 Financial Products Group 58 Medartis 78 Spotless Group 56
At Home 79 Financiera de Desarrollo Nacional 51 Medi Assist Health Services 75 STLC 45
AT&T 6 Finland 29 Meituan-Dianping 74 Stockland 30
Axalta Coating Systems 65 FirstCaribbean International Bank 82 Members Equity Bank 34 Sumitomo Mitsui 13
Baden-Wuerttemberg 29 Flora Food Group 55 Mexico 45 Sunrise Medical 71
Bahrain 4 Fosun International 56 Minerva 45 Swissport 71, 77
Banca Carige 25 Galliford Try 78 Mishra Dhatu Nigam 75 Tailored Brands 68
Banco Santander 32 Gangtai Group 46 Mizuho Financial 20 Taizhou Huaxin Pharmaceutical 46
Bank of America Merill Lynch 13, 20 Gategroup 77 MK Fintel Wind 77 Techem 55
Bank of the Philippine Islands 76 GCP Infrastructure Investments 62 Mobilezone 78 Tesla 4
Barclays 13, 20, 23 Gebr Knauf 59 Morgan Stanley 20 The Binding Site 71
Beijing Jingneng Clean Energy 21 General Dynamics 63 Morgan Stanley Employment Services 13 The Fresh Market 35
Beijing Kingee Culture Development 83 General Mills 73 Mumbai International Airport 49 The Stars Group 65
Belarus 49 General Motors 62 Mylan 26 Tianqi Lithium 74
Belarus Development Bank 49 Gilex 45 Mylin Holding Group 83 TINC 76
Bilibili 6, 75 GlaxoSmithKline 62 Nafin 52 Tops 35
BlackRock Financial 64 Glencore 61 Nelnet 39 Toronto-Dominion Bank 39
Blue Buffalo Pet Products 73 Godewind Immobilien 76 New World Development 21 Townsquare Media 70
BlueMountain Fuji Management 38 Golden Belt 7 New York Fed 19 Toyota Finance Australia 29
BNP Paribas 14 Goldman Sachs 13, 14, 20 NEX Group 23 Transurban Queensland 31
BoCom International Holdings 57 GreenSky 69 Nippon REIT Investment Corp 58 TravelClick 67
Bohai Automotive Systems Co 57 GreenTree Hospitality Group 6, 75 NMC Health 62 Trilliant 70
Bright Horizons Family Solutions 79 Grosvenor Capital Management 69 Noble Group 23 Tui 35
Burgan Bank 60 Guanghui Energy 75 Nomura 13 Turkcell 50
Bygghemma 77 Guangyang Antai Holdings 46 Noor Bank 50 Turk Eximbank 61
CABEI 45, 53 Guatemala 45, 51 Nordic Aviation Capital 59 Turkiye Finans 50
Cafe Outspan Vietnam 57 HealthChannels 67 nVent 63 UBI Banca 33
Canadian Imperial Bank of Commerce 82 Heidelberger Druckmaschinen 59 Olam International 21, 57 UniCredit 14
CareCentrix 69 Hermina Group 76 OneConnect Financial Technology 74 Unilever 55
CAR Inc 10 Heron Therapeuctics 80 OneSmart International Education 6, 75 Unum Therapeutics 79
CDW 65 Hindustan Aeronautics 76 Orano 36 Uruguay 45, 53
CenterPoint Energy Resources 26 Homology Medicines 81 Overstock.com 80 US Silica 66
Ceridian HCM 64, 81 Hornblower 69 Panama 45, 52 Vakif Katilim Bankasi 61
Chegg 83 HSBC UK 13 Paraguay 53 Verizon Communications 64
Chemours 66 Ibercaja 34 Paratus AMC 37 Vicinity Centres 30
CH Guenther 66 ICBC Asia 46 Pentair 63 Vivid Seats 68
China Grand Automotive Services 47 ICICI Securities 7, 75 Ping An Bank 83 Volkswagen Financial Services 41
China National Chemical Corp 56 Imagina 71 Pivotal Software 81 Vrio 45, 54
China Zheshang Bank 75 Indiabulls Housing Finance 58 Ply Gem Holdings 69 WABCO 59
Cinemark 68 Indra Sistemas 30 Poly Property Group 46 Wales & West Utilities 31
Citigroup 17, 20 Inke 75 PTC Therapeutics 80 West Corp 69
Citizens Bank 33 Inner Mongolia BaoTou Steel Union 46 RBC Europe 13 WG Tech (Jiangxi) 75
Clifden 38 Inovalon Holdings 65 Realty Income 26 World Bank 27
CME Group 23, 64 InRetail Shopping Malls 45, 52 Regency Centers Corp 63 WuXi AppTec 8
Cocobod 60 Internap Corp 67 Remington Outdoor Co 72 Wyndham Hotels & Resorts 67
Colombia 50 International Car Wash Group 64 Restore 62, 78 Xianhe Corp 75
Commerzbank 14 International Development Association 27 Ri Happy 82 Xinjiang Goldwind Science and Tech 47, 75
Consilio 64 Invitae 80 Rio Tinto 30 YTO Express Group 83
Conviviality 78 iQiyi 6 Riversdale Resources 7 Yum! Brands 69
Coty 10, 36, 68 Iron Mountain 70 Rocket Software 66 Zentiva 55
Country Garden Holdings 47 Isbank AG 60 Ronshine China Holdings 46 Zhejiang Geely Holding Group 41
Credit Suisse 13, 20 JD Sports 62 Russell Investments 66 Zhengzhou Zhongrui Industrial 46, 47
Daimler 10, 31 Jiangsu NewHeadline Development 46 Sanlam 77 Zosano Pharma 80
Dana Gas 51 Jiangxi Copper 47 Sanofi 55
Danaher 63 John Laing Group 78 SBA Communications 64
David’s Bridal 72 JP Morgan 13, 14, 20 Scentre Group 30
D Carnegie 77 KBR 67 Scout24 59
Sponsored by:
TIME
Moderated by PFI’s Editor, Rod Morrison, the 09:00 – Registration
Roundtable will consist of two 90-minute sessions: one 09:30 – Local/Domestic Bonds
on local/domestlic bonds and one on international 11:00 – Break
dollar bonds. 11:15 – Int’l Dollar Bonds
12:45 – Lunch and networking
Each panel will contain the most senior and 14:00 – End
experienced market practitioners – including lawyers,
project sponsors, investors and rating agencies. VENUE
The Ritz Carlton – Pacific Place
For more information and to register for this free to Jakarta, Indonesia