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Bank and Capital Markets New Issue Review - week 48€¦ · Bank and Capital Markets New Issue...
Transcript of Bank and Capital Markets New Issue Review - week 48€¦ · Bank and Capital Markets New Issue...
Bank and Capital Markets New Issue Review
01 Nov – 05 Nov 2014, week 48
Capital & Debt Advisory
Market Leading Independent Debt Advisory Bank Market | Public Bonds | Private Placements | Ratings | Hedging | Retail Bonds
Contents Section 1 Market backdrop 2
Section 2 Bank loan market 3
Section 3 USD public bond market 6
Section 4 GBP public bond market 9
Section 5 EUR public bond market 11
Section 6 US Private Placement market 12
Contacts
United Kingdom
Luke Reeve
Tel: +44 20 7951 6548 Email: [email protected]
Chris Lowe
Tel: +44 20 7951 0826 Email: [email protected]
Gary Davison
Tel: +44 161 333 2767 Email: [email protected]
Europe
Olivier Catonnet Tel: +33 1 5561 0535 Email: [email protected]
Jonathan H.M. Harfield Tel: +420 731 627 155 Email: [email protected]
Britta Becker Tel: +49 40 36132 20781 Email: [email protected]
Asia
Gaurav Ahuja
Tel: +65 6309 8276 Email: [email protected]
US & Canada
K.C. Brechnitz Tel: +1 704 335 4211 Email: [email protected]
Tony Ianni
Tel: +1 416 943 3476 Email: [email protected]
Australia
Sebastian Paphitis Tel: +61 2 9248 4773 Email: [email protected]
Jason Lowe
Tel: +61 3 8650 7600 Email: [email protected]
Section 7 Credit ratings 14
Section 8 Glossary 15
@EY_UKI
EY Capital and Debt Advisory - New Issue Review 2
Market backdrop
The US accelerates and surprises whilst oil continues to tumble
► On Thursday, the UK saw the Bank of England leave base rates unchanged for the 69th month in a row at 0.5%. Alongside this, the monetary policy committee also retained the size of the Bank’s quantitative easing at £375 bn. Finally, this week saw the Chancellor deliver his Autumn Statement to the market, noting increasing growth forecasts to 3% from the Office for Budget Responsibility (OBR) but a continuing lag in tackling the budget deficit.
► The ECB retained interest rates at the record low of 0.05% and lowered its 2015 forecast for consumer-price growth to 0.7% from 1.1% and in 2016 from 1.4% to 1.3%. In a continuing response to the increasing deflation threats and stagnating growth, the ECB noted that the Bank would review and consider quantitative easing in the early part of 2015, dependent on the impacts of current stimulus. Key challenges remain in implementing such a programme, as well as resistance from Germany who have commentated that such a programme would be outside of the ECB’s remit.
► Positive economic data from the United States continues, this time with the non-farm payrolls coming in at 312k during the month, significantly beating market expectations. The creation of over 300k jobs is the highest since January 2012 and was further supported by wage growth inflation of 0.4% in the month. The news was generally well received, with both the Dow Jones industrial average and S&P 500 advancing to record highs.
► Finally, uncertainty in the oil market continues as prices fall further. A growing supply glut has meant that prices have dropped to below US$70 pp/b for the first time in 5 years. The oil cartel Opec has opted to maintain its 30m-a-day production levels, despite the highest US shale gas output in three decades and lower than expected oil demand in Europe and China. Many industry analysts predict that lower prices will persist well into 2015, with forecasts from the International Energy Agency suggesting that Opec would have to cut production by 1m – 1.5m barrels a day in order to correct the current oversupply.
Section 1: Market backdrop
Tenor 3yr 5yr 7yr 10yr 30yr
UK swap rate 1.26 1.62 1.86 2.10 2.52
Gilt rate 0.88 1.36 1.64 2.02 2.74
Tenor 3yr 5yr 7yr 10yr 30yr
US swap rate 1.28 1.82 2.13 2.42 2.93
UST rate 1.07 1.69 2.06 2.31 2.97
Source: Bloomberg
Source: Bloomberg Source: Bloomberg
Source: Bloomberg
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3 month UK LIBOR forward rates
Current forward 3m UK LIBOR (-1 wk) fwd 3m UK LIBOR
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3yr 4yr
5yr 7yr 10yr
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10yr UST 10yr Gilt 10yr Bund
Bank loan market
EUR / GBP completed transactions greater than US$250m
EY Capital and Debt Advisory - New Issue Review 3
► Compuware Corp has launched a c.$2 billion credit facility to back its buyout by Thoma Bravo which was announced in early September. The debt package includes a $300m five-year term loan B-1, a $950m seven-year term loan B-2, a $105m asset sale bridge, a $550m eight-year second-lien term loan and a $100m five-year revolver. Total leverage is expected to be 5.5x on opening with 4x for first-lien leverage. That said, Moody's calculated pro forma leverage at 7.5x saying that the company should be able to reduce leverage to 6x by March 2016 due to cost-cutting measures.
► Last month, telecommunications company Sable agreed to acquire Columbus International Inc, a leading privately-owned fibre-based telecommunications provider operating in the Caribbean, Central America and the Andean region, for $1.85bn. The transaction will be funded by a $760m dual-tranche credit facility including a $460m senior secured loan and a $300m senior unsecured loan, both maturing in two years.
► The European Bank for Reconstruction and Development (EBRD) has arranged a long-term financing for the $1 billion combined-cycle gas turbine power plant that will be built in Turkey near the city of Kirikkale. The plant will be built by a Turkish subsidiary of independent Saudi Arabian firm ACWA Power. The EBRD has arranged a $250m loan, split between a $200m A loan from the EBRD's own account and a $50m B loan syndicated to Banque Saudi Fransi. Banque Saudi Fransi is also providing a $100m murabaha financing. In addition, The International Finance Corporation (IFC) arranged a $170m syndicated loan, of which $45 million is syndicated to the Korea Development Bank.
Section 2: EUR/GBP bank loan market
Source: Loan Connector Source: Loan Connector
Issue date
Issuer Tranche rating
Form Ccy Amount Maturity Margin (+bps)
Sector Ctry Leads
01-Dec CHRIST Juweliere NR, NR RCF EUR 25 - L+375 Consumer Products DE Various
01-Dec CHRIST Juweliere NR, NR RCF EUR 25 - L+375 Consumer Products DE Various
01-Dec CHRIST Juweliere NR, NR TL EUR 170 - L+450 Consumer Products DE Various
01-Dec Spectrum Brands NR, NR RCF EUR 150 - E+300 Automotive US CS, DB
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Western Europe Loan Volumes
Lev - Vol. ($Bils.) IG - Vol. ($Bils.)
Lev - No. of Deals IG - No. of Deals
Bank loan market
EY Capital and Debt Advisory - New Issue Review 4
Section 2: Bank loan market
USD completed transactions greater than US$250m
Issue date
Issuer Tranche rating
Form Ccy Amount Maturity Margin (+bps)
Sector Ctry Leads
03-Dec Autonation NR, NR RCF USD 1,700 2019 L+150 Automotive US Various
03-Dec Compuware NR, NR RCF USD 100 2019 - Technology US CS, DB, JEFF
03-Dec Compuware NR, NR TL USD 300 2019 L+450 Technology US CS, DB, JEFF
03-Dec Compuware NR, NR TL USD 950 2021 L+500 Technology US CS, DB, JEFF
03-Dec Compuware NR, NR TL USD 550 2022 L+800 Technology US CS, DB, JEFF
03-Dec Compuware NR, NR OTH USD 105 - L+450 Technology US CS, DB, JEFF
03-Dec Sonneborn B1, B TL USD 280 2020 L+450 Oil & Gas US Macquarie
02-Dec China Communications NR, NR OTH USD 1,100 2015 - Construction CN Various
02-Dec Global Cash Access B1, B+ RCF USD 50 2019 - Business Services US BAML, DB
02-Dec Global Cash Access B1, B+ TL USD 500 2020 L+525 Business Services US BAML, DB
02-Dec Sable NR, NR RCF USD 500 - - Telecommunications UK JPM
02-Dec Sable NR, NR TL USD 300 2016 L+550 Telecommunications UK JPM
02-Dec Sable NR, NR TL USD 460 2016 L+450 Telecommunications UK JPM
02-Dec Tesoro NR, NR RCF USD 900 2019 L+275 Oil & Gas US BAML, RBS
02-Dec Varsity Brands B1, B+ TL USD 755 2021 - Media & Entertainment US GS
01-Dec ACWA Power NR, NR TL USD 50 - - Power & Utilities TR Banque Saudi Fransi, EBRD
01-Dec ACWA Power NR, NR TL USD 200 - - Power & Utilities TR -
01-Dec ACWA Power NR, NR OTH USD 60 - - Power & Utilities TR -
01-Dec ACWA Power NR, NR OTH USD 90 - - Power & Utilities TR -
01-Dec ACWA Power NR, NR OTH USD 170 - - Power & Utilities TR IFC
01-Dec Amerada Hess NR, NR RCF USD 4,000 2020 L+108 Oil & Gas US Various
01-Dec Archer Daniels NR, A RCF USD 1,500 2019 - Consumer Products US Various
01-Dec Cydsa NR, NR TL USD 120 2019 - Chemicals MX Citi, RAB
01-Dec Cydsa NR, NR OTH USD 30 2017 - Chemicals MX Citi, RAB
01-Dec Cydsa NR, NR OTH USD 150 2019 - Chemicals MX Citi, RAB
01-Dec Egyptian General Petroleum
NR, NR TL USD 1,500 2017 - Oil & Gas EG HSBC, NBAD, NBE
01-Dec Fibria Celulose NR, NR TL USD 100 2019 L+130 Consumer Products BR BNP, NAT
Bank loan market
EY Capital and Debt Advisory - New Issue Review 5
Section 2: Bank loan market
USD completed transactions greater than US$250m (cont.)
Issue date
Issuer Tranche rating
Form Ccy Amount Maturity Margin (+bps)
Sector Ctry Leads
01-Dec Fibria Celulose NR, NR TL USD 150 2019 L+140 Consumer Products BR BNP, NAT
01-Dec Fibria Celulose NR, NR TL USD 150 2020 L+155 Consumer Products BR BNP, NAT
01-Dec Hitachi Metals NR, NR TL JPY 35,500 2020 - Mining & Metals JP BOTM
01-Dec Hitachi Metals NR, NR TL USD 650 2021 - Mining & Metals JP BOTM
01-Dec Hitachi Metals NR, NR TL JPY 10,000 2021 - Mining & Metals JP BOTM
01-Dec Sunrun NR, NR OTH USD 200 - L+300 Power & Utilities US Investec
01-Dec Terra-Gen NR, NR TL USD 300 2021 L+425 Power & Utilities US Citi, GS
01-Dec TierPoint B2, NR RCF USD 40 - - Technology US CS, RBC
01-Dec TierPoint B2, NR TL USD 330 2021 L+425 Technology US CS, RBC
01-Dec TierPoint Caa2, NR TL USD 90 2022 L+775 Technology US CS, RBC
01-Dec Waterfront Properties NR, NR TL USD 445 2021 - Real Estate IN STA
USD public bond market
EY Capital and Debt Advisory - New Issue Review 6
► Following a relatively quiet week due to Thanksgiving on the other side of the Atlantic, the USD bond market saw a flurry of jumbo issuance in the investment grade space this week as companies rushed to take advantage of low interest rates. Notable jumbo issuance this week came from Beckett Dickinson (Baa2, BBB+, NR), Amazon (Baa1, AA-, NR) and Medtronic (A3, AA-, NR).
► This week, Minneapolis medical-device maker, Medtronic (A3, AA-, NR), tapped the US$ bond market for US$17 billion across 7-tranches. Proceeds from the bond issuance are to be used by Medtronic to finance its US$43 billion purchase of Ireland’s Covidien.
► Medtronic’s issuance is this year’s biggest corporate bond deal outdoing Apple’s US$12 billion issuance in April earlier this year. Medtronic’s issue is tied for the second largest on record with Apple’s US$17 billion issuance in April 2013 with the largest corporate bond sale on record being Verizon Communications’ US$49 billion issuance in September 2013.
► Medtronic’s bond sale attracted an order book of US$45 billion further confirming how highly rated US corporate debt has been one of the best performing categories of fixed income this year.
Domestic
Section 3: USD public bond market
Source: Reuters Source: Reuters
Issue date
Issuer Tranche rating (M,S&P,F)
Form Amount (US$m)
Coupon Maturity Spread (T+bps)
Sector Ctry Leads
4-Dec ADT Ba2, BB-, BBB- SN 300 5.250% 2020 +362 Consumer Products US Various
4-Dec Becton Dickinson Baa2, BBB+, NR SN 750 Float 2016 - Life Sciences US Various
4-Dec Becton Dickinson Baa2, BBB+, NR SN 1,250 1.800% 2017 +85 Life Sciences US Various
4-Dec Becton Dickinson Baa2, BBB+, NR SN 1,250 2.675% 2019 +110 Life Sciences US Various
4-Dec Becton Dickinson Baa2, BBB+, NR SN 1,750 3.734% 2024 +150 Life Sciences US Various
4-Dec Becton Dickinson Baa2, BBB+, NR SN 1,200 4.685% 2044 +175 Life Sciences US Various
4-Dec Church & Dwight Baa1, BBB+, NR SN 300 2.450% 2019 +88 Consumer Products US Various
4-Dec Clorox Baa1, BBB+, BBB+ SN 500 3.500% 2024 +125 Consumer Products US Various
4-Dec Cott Beverages B3, B-, NR SN 625 6.750% 2020 - Consumer Products US Various
3-Dec Ameren A2, A, A- SSN 300 3.250% 2025 +97 Power & Utilities US Various
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USD public bond market
EY Capital and Debt Advisory - New Issue Review 7
Section 3: USD public bond market
Domestic (cont.)
Issue date
Issuer Tranche rating (M,S&P,F)
Form Amount (US$m)
Coupon Maturity Spread (T+bps)
Sector Ctry Leads
3-Dec Dominion Gas A2, NR, A- SN 450 2.500% 2019 +90 Oil & Gas US Various
3-Dec Dominion Gas A2, NR, A- SN 450 3.600% 2024 +135 Oil & Gas US Various
3-Dec Dominion Gas A2, NR, A- SN 500 4.600% 2044 +165 Oil & Gas US Various
3-Dec Entergy A3, NR, NR SSN 250 4.950% 2044 +200 Power & Utilities US Various
3-Dec UnitedHealth A3, A+, A- SN 750 1.400% 2017 +48 Life Sciences US Various
3-Dec UnitedHealth A3, A+, A- SN 500 2.300% 2019 +73 Life Sciences US Various
3-Dec UnitedHealth A3, A+, A- SN 750 2.875% 2021 +88 Life Sciences US Various
3-Dec Viacom Baa2, BBB, BBB+ SN 400 2.750% 2019 +115 Media & Entertainment US Various
3-Dec Viacom Baa2, BBB, BBB+ SN 600 4.850% 2034 +190 Media & Entertainment US Various
2-Dec Amazon Baa1, AA-, NR SN 1,000 2.600% 2019 +105 Consumer Products US Various
2-Dec Amazon Baa1, AA-, NR SN 1,000 3.300% 2021 +135 Consumer Products US Various
2-Dec Amazon Baa1, AA-, NR SN 1,250 3.800% 2024 +155 Consumer Products US Various
2-Dec Amazon Baa1, AA-, NR SN 1,250 4.800% 2034 +185 Consumer Products US Various
2-Dec Amazon Baa1, NR, NR SN 1,500 4.950% 2044 +205 Consumer Products US Various
2-Dec DirecTV Baa2, BBB, NR SN 1,200 3.950% 2025 +175 Media & Entertainment US Various
2-Dec Plains All American Baa2, BBB+, NR SN 500 2.600% 2019 +105 Oil & Gas US Various
2-Dec Plains All American Baa2, BBB+, NR SN 650 4.900% 2045 +190 Oil & Gas US Various
2-Dec Tenneco Ba3, BB, BB SN 225 5.375% 2024 +310 Automotive US Wells, Citi, MS
1-Dec Berkshire Hathaway A3, BBB+, BBB+ SN 350 2.400% 2020 +88 Power & Utilities US Various
1-Dec Berkshire Hathaway A3, BBB+, BBB+ SN 400 3.500% 2025 +128 Power & Utilities US Various
1-Dec Berkshire Hathaway A3, BBB+, BBB+ SN 750 4.500% 2045 +160 Power & Utilities US Various
1-Dec Cox Baa2, BBB, BBB+ SN 700 3.850% 2025 +165 Media & Entertainment US Various
1-Dec Cox Baa2, BBB, BBB+ SN 650 4.800% 2035 +185 Media & Entertainment US Various
1-Dec Medtronic A3, AA-, NR SN 1,000 1.500% 2018 +70 Life Sciences US Various
1-Dec Medtronic A3, AA-, NR SN 500 Floats 2020 - Life Sciences US Various
1-Dec Medtronic A3, AA-, NR SN 2,500 2.500% 2020 +100 Life Sciences US Various
1-Dec Medtronic A3, AA-, NR SN 2,500 3.150% 2022 +125 Life Sciences US Various
1-Dec Medtronic A3, AA-, NR SN 4,000 3.500% 2025 +140 Life Sciences US Various
1-Dec Medtronic A3, AA-, NR SN 2,500 4.375% 2035 +150 Life Sciences US Various
USD public bond market
EY Capital and Debt Advisory - New Issue Review 8
Section 3: USD public bond market
Domestic (cont.)
Issue date
Issuer Tranche rating (M,S&P,F)
Form Amount (US$m)
Coupon Maturity Spread (T+bps)
Sector Ctry Leads
1-Dec Medtronic A3, AA-, NR SN 4,000 4.625% 2045 +170 Life Sciences US Various
1-Dec Spectrum Brands B3, B, BB- SN 250 6.125% 2024 +391 Consumer Products US CS, DB
Cross border
Issue date
Issuer Tranche rating (M,S&P,F)
Form Amount (US$m)
Coupon Maturity Spread (T+bps)
Sector Ctry Leads
5-Dec Constellium B1, NR, NR SN 400 8.000% 2023 +582 Mining & Metals FR DB, GS, SG
4-Dec Chinalco A1, NR, NR SN 500 3.625% 2019 +213 Mining & Metals CN Various
4-Dec Dana B2, BB+, NR SN 425 5.500% 2024 +324 Automotive UK Various
2-Dec Sunac China B1, B+, BB- SN 400 8.750% 2019 - Real Estate CN Various
2-Dec Unitymedia Hessen Baa3, BB-, NR SSN 550 5.000% 2025 +271 Media & Entertainment DE Various
1-Dec Logan Property B1, NR, BB- SN 250 9.750% 2017 - Real Estate CN Various
1-Dec Yuzhou Properties B1, NR, NR SN 250 9.000% 2019 - Real Estate HK Various
GBP public bond market
EY Capital and Debt Advisory - New Issue Review 9
Section 4: GBP public bond market
Source: Reuters Source: Reuters
Domestic
Cross-border
► In a relatively quiet week with limited new issue supply, the Sterling bond market saw UPP (Baa1, A-, NR) issue £150m of 35-year notes at 1.037% (G+175bps).
Issue date
Issuer Tranche rating (M,S&P,F)
Form Amount (GBPm)
Coupon Maturity Spread (G+bps)
Sector Ctry Leads
No significant issuance in the week
Issue date
Issuer Tranche rating (M,S&P,F)
Form Amount (GBPm)
Coupon Maturity Spread (G+bps)
Sector Ctry Leads
3-Dec UPP Baa1, A-, NR SSN 150 1.037% 2049 +175 Real Estate UK BAR, RBS
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ORB retail bond market
EY Capital and Debt Advisory - New Issue Review 10
In the market
Recent Issues
Date Issuer Ratings (M,S&P,F) Form Amount (GBPm)
Coupon Maturity Sector Country
16-Oct Eros International NR, NR, NR SN 50 6.50% 2021 Media & Entertainment
UK
1-Oct A2D Funding NR, NR, NR SSN 150 4.50% 2026 Real Estate UK
20-Aug Burford Capital NR, NR, NR SN 90 6.50% 2022 Finance UK
15-Jul Golden Lane Charity NR, NR, NR SN 11 4.47% 2021 Real Estate UK
9-Jun Ladbrokes NR, BB, BB SN 100 5.13% 2022 Leisure UK
30-Jan Paragon NR, NR, NR SN 125 6.13% 2022 Finance UK
6-Dec Premier Oil NR, NR, NR SN 150 5.00% 2020 Oil & Gas UK
21-Oct A2Dominion NR, NR, AA- SN 150 4.75% 2022 Real Estate UK
25-Jul Bruntwood NR, NR, NR SSN 50 6.00% 2020 Real Estate UK
25-Jun Helical Bar NR, NR, NR SN 80 6.00% 2020 Real Estate UK
8-May International Personal Finance
NR, NR, BB+ SN 70 6.13% 2020 Finance UK
21-Mar Provident NR, NR, BBB SN 65 6.00% 2021 Finance UK
05-Mar Paragon NR, NR, NR SN 60 6.00% 2020 Finance UK
15-Feb EnQuest NR, NR, NR SN 145 5.50% 2022 Oil & Gas UK
19-Dec Alpha Plus NR, NR, NR SSN 49 5.75% 2019 Education UK
12-Dec UNITE NR, NR, NR SN 90 6.13% 2020 Real Estate UK
Date Issuer Ratings (M,S&P,F) Form Amount (GBPm)
Coupon Maturity Sector Country
No significant issuances in the week
Section 4: ORB retail bond market
EUR public bond market
EY Capital and Debt Advisory - New Issue Review 11
► This week, the Eurobond market saw a number of domestic issuers tap the market with the Swedish premium automobile giant, Volvo (Ba1, NR, NR), raising EUR1.5 billion in two tranches to further strengthen the Group’s balance sheet and prolong the maturity structure of the debt portfolio.
► The EUR0.9 billion tranche, with a first call after 5.5 years and a maturity of 60.5 years, was issued at 4.200%.
► The EUR0.6 billion tranche, with a first call after 8.25 years and a maturity of 63.25 years, was issued at 4.850%.
Section 5: EUR public bond market
Source: Reuters Source: Reuters
Domestic
Issue date
Issuer Tranche rating (M,S&P,F)
Form Amount (EURm)
Coupon Maturity Spread (+bps)
Sector Ctry Leads
5-Dec Corvallis NR, NR, NR SN 8,000 6.250% 2019 - Technology DK Various
5-Dec Constellium B1, NR, NR SN 240 7.000% 2023 +646 Mining & Metals FR DB, GS, SG
4-Dec Danfoss NR, BBB, NR SN 500 1.375% 2022 MS+78 Technology DK Various
3-Dec Imerys Baa2, NR, NR SN 100 2.500% 2020 MS+80 Chemicals FR Various
3-Dec Imerys Baa2, NR, NR SN 500 2.000% 2024 MS+115 Chemicals FR Various
3-Dec Volvo Ba1, NR, NR SUB 900 4.200% 2075 MS+380 Automotive SE Various
3-Dec Volvo Ba1, NR, NR SUB 600 4.850% 2078 MS+410 Automotive SE Various
2-Dec Casino Guichard-Perrachon
NR, NR, BBB- SN 650 2.330% 2025 MS+135 Consumer products FR Various
2-Dec Unitymedia Hessen Baa3, BB-, BB- SSN 1,000 4.000% 2025 MS+326 Media & Entertainment
DE Various
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Cross border
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Sector Ctry Leads
1-Dec Albemarle Baa3, BBB-, NR SN 700 1.875% 2021 MS+140 Chemicals US BASML, JPM, Wells
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Private Placement market
EY Capital and Debt Advisory - New Issue Review 12
► In the domestic market, AptarGroup Inc (NAIC-1), a leading global supplier of a broad range of innovative dispensing systems for the Personal Care, Fragrance/Cosmetic, Pharmaceutical, Household and Food/Beverage Markets, tapped the market. The deal was launched as $250m of senior notes, split into 9-year and 11-year pieces with funding in December and February: 9-year bullets, at +125bp; and 11-year bullets, at +125bp.
► Last week, the Empire District Electric Co (NAIC-2), an electric utility based in Missouri, tapped the market in a deal with TIAA, John Hancock, and CUNA. The transaction was for $60mm of 4.27% FMB due in 30-years.
► Caribbean Utilities Co Ltd (NAIC-1), provides electricity to Grand Cayman, Cayman Islands, under a non-exclusive Electricity Generation License expiring in 2029 and an exclusive Electricity Transmission and Distribution License expiring in 2028. Last week, the company raised $50m of senior notes in three pieces with a portion of the funding being used to finance the development of a 39.7 MW diesel power plant. The three tranches included $30m of 15-year bullets, with a 3.65% coupon; $5m of 20-year bullets, with a 3.85% coupon; and $15m of 32-year bullets, with a 4.53% coupon.
► Bracco Imaging, an Italian multinational healthcare company, involved in diagnostic imaging, contrast-agent injection systems, and prescription and over-the-counter pharmaceuticals, tapped the USPP market ahead of its listing on the Luxembourg Stock Exchange. The transaction was done as €100m of 7-year unsecured notes, with a 3.17% coupon.
Section 6: US Private Placement market
Source: Private Placement Monitor Source: Bloomberg
Source: Private Placement Monitor Source: Private Placement Monitor
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Date Issuer Ratings Form Amount (US$m) Coupon Maturity Spread (T+bps)
Sector Ctry
Dec-14 Indianapolis Courthouse - SSN - - 20yr - Real Estate US
Dec-14 2014 Replacement Power Statutory Trust
NAIC-1 SSN 355 - 15f/8avg +150 Power & Utilities
US
Dec-14 Empire State Realty Trust
NAIC-2 - 200 - 10yr, 12yr,
15yr +100 Real Estate US
Nov-14 Teekay Offshore Partners
NAIC-2 SSN 45 - 10yr +200 - 210 Oil & Gas US
Date Issuer Ratings Form Amount (US$m) Coupon Maturity Spread (T+bps)
Sector Ctry
Dec-14 Oldendorff Carriers NAIC-2 SSN 50 - 10yr, 30yr +200 Transport DE
Date Issuer Ratings Form Amount (US$m) Coupon Maturity Spread (T+bps)
Sector Ctry
Dec-14 AptarGroup NAIC-1 SN 475 - 9yr
11yr +125 +125
Consumer Products
US
Dec-14 Empire District Electric NAIC-2 FMB 60 4.27% 30yr - Power & Utilities
US
Dec-14 Wind Energy Transmission
NAIC-1 (A3)
SSN 155 490
4.31% 3.67%
10f/9avg 20f/16avg
+205/10yr +120/Icur
Power & Utilities
US
Nov-14 AES NAIC-2 (BBB)
SN 298 4.17% 9f/3.6avg +300 Power & Utilities
US
Nov-14 STAG Industrial NAIC-2 (BBB-)
SN 80
100 20
4.42% 4.32% 4.42%
8yr 10yr 12yr
+210/10yr +200
+210/10yr Real Estate US
Private Placement market
Domestic: In the market
EY Capital and Debt Advisory - New Issue Review 13
Domestic: Issued
Section 6: US Private Placement market
Cross Border: In the market
Cross Border: Issued
Date Issuer Ratings Form Amount (US$m) Coupon Maturity Spread (T+bps)
Sector Ctry
Dec-14 Fortis TCI NAIC-1 SN 90 4.75% 15f/10.25av
g +100
Power & Utilities
CA
Dec-14 Caribbean Utilities NAIC-1 SN 30 5
15
3.65% 3.85% 4.53%
15yr 20yr 32yr
- Power & Utilities
KY
Dec-14 Bracco Imaging - SN EUR 100 3.17% 7yr - Life Sciences IT
Nov-14 Energy Partnership NAIC-2 (Baa3/BBB-)
SN 105
AUD 47.5 3.39% 7yr
+140 +147.5/UST
Power & Utilities
AUS
Nov-14 Befimmo SCA NAIC-2 SN EUR 12 - 10yr - Real Estate BE
Nov-14 BMW NAIC-1 SN 85
215 50
2.91% 3.30% FRN
7yr 10yr 10yr
+90 +100 +100
Automotive DE
Credit ratings
New and Notable from Ratings Agencies
EY Capital and Debt Advisory - New Issue Review 14
The above list highlights ratings developments that we believe are interesting or noteworthy. This list is not exhaustive.
Section 7: Credit ratings
Issuer Actions Agency
SMBC Aviation Capital Ltd. Ireland-based aircraft operating lessor assigned BBB+ rating/ outlook stable S&P
Action Holding B.V. Netherlands-based nonfood discounter assigned B+ rating on dividend recapitalization and refinancing plans/ outlook stable
S&P
New ratings Keepmoat U.K.-based provider of regeneration services and homebuilding assigned B2 rating/ outlook stable Moody's
Issuer Actions / Comment Agency
Rating actions
EDF Energy group A+ rating is affirmed but with negative outlook maintained Fitch
Ireland Upgraded to A from A- on improved growth and fiscal performance/ outlook stable S&P
E.ON SE German integrated utility's A- rating placed on CreditWatch negative on announced spin-off off a majority stake in its power and gas upstream and midstream business
S&P
Channel Link Enterprises Finance UK-based project finance company rating raised to BBB+ on stronger expected operations/ outlook stable
S&P
Italy Rating lowered to BBB- from BBB reflecting the recurrent weaknesses real and nominal GDP performance/ outlook stable
S&P
Tereos French sugar producer rating outlook revised to negative as fall in sugar prices hits forecast credit metrics. BB+ rating affirmed
S&P
Comboios de Portugal Portuguese rail operator upgraded to BB on integration with Portuguese government/ outlook stable S&P
Constellium N.V. French aluminium producer downgraded to B on debt-funded purchase of U.S.-based Wise Metals/ outlook stable
S&P
Cooperative Bank Plc Bank B rating is affirmed but with a Negative Outlook maintained Fitch
Theme Comment Agency
Finance and market trends
Global growth Global Economic Outlook published. US main driver of growth, with 2015 forecast GDP growth at 3.1% Fitch
Germany German bond issuance to continue slow growth trend in 2015 Moody's
EU Banks Mostly negative European banking system outlooks in 2015 owing to new bail-in regimes, despite improving financial stability
Moody's
EU banks EU bank ratings maintain a negative bias due to potential pressure on state support under EU Bank Recovery and Resolution Plans
Fitch
US regional banks Credit pressure on banks' energy loan books will build should low prices persist into 2015 Fitch
Leveraged Finance U.S. Leveraged Finance investors see favorable market conditions In 2015 / Speculative-Grade rating actions increased in November amid commodity price volatility
S&P
EMEA Corporates Stable outlook for EMEA non-financial corporates despite slow growth on the back of economic reforms, euro weakness and corporate deleveraging/ Debt capacity and rating headroom expected to increase for EMEA corporates in 2015
Moody's/ Fitch
Theme Comment Agency
Industry comment
Reinsurance Negative outlook maintained for global reinsurance sector for 2015 as buyers wield strong bargaining power and continue to explore cheaper alternatives to traditional reinsurance
Moody's
US local government Outlook is Stable, with moderate revenue growth, controlled spending, and mixed long-term liabilities Fitch
Infrastructure Revenue sources for debt repayment, not funding availability, are major factor causing under-investment
Fitch
Rail Global Rail companies enjoy a largely stable outlook, but some face sovereign risk S&P
Real Estate Prospects for EMEA's Real Estate sector remain stable thanks to low interest rates and steady earnings S&P
Luxury Goods Europe's Luxury Goods industry will likely cope well with ongoing shifts in global demand S&P
Theme Comment Agency
Methodologies Structured Finance S&P publishes methodology for assessing mortgage insurance in structured and public sector finance and covered bonds
S&P
Asset-backed securitization ABS Not rated NR
Commercial mortgage-backed securitization CMBS Other loan OTH
Credit tenant lease CTL Project bond (non-recourse) PB
Deep discount bond DDB Revolving credit facility RCF
Energy savings performance contract ESPC Senior note SN
First mortgage bonds FMB Senior secured note SSN
London interbank offered rate LIBOR Subordinated note SUB
Medium-term note MTN Term loan TL
ABN Amro ABN Jefferies & Co. JEFF
Bank of America Merrill Lynch BAML JP Morgan JPM
BBVA Securities BBVA KBC Capital Markets KBC
Bank of Tokyo Mitsubishi UFJ BOTM Landesbank Baden-Wuerttemberg LBBW
Banco Santander SA SANT Lloyds Capital Services Ltd LCS
Bank of New York BNY Lloyds Banking Group LBG
Bank of Nova Scotia BNS Banca March MAR
Barclays Bank BAR Mitsubishi UFJ Financial MIS
BayernLB BLB Mizuho Financial Group Inc MIZ
BMO Capital Markets BMO Morgan Stanley MS
BNP Paribas Group BNP Natixis NAT
Capital One Bank COB Norddeutsche Landesbank GZ NLB
Calyon CAL Nomura NOM
CIBC World Markets CIBC PNC Capital Markets PNC
Citi Citi Rabobank RAB
Commonwealth Bank of Australia CBA RBC Capital Markets RBC
Commerzbank AG CZB Raiffeisen Bank International RBI
Crédit Agricole CA RBS RBS
Credit Suisse CS Société Générale SG
Deutsche Bank DB Scotia Capital Inc SCA
DnB NORD DnB Standard Bank Plc SB
European Investment Group EIG Standard Chartered Bank STA
Fortis Securities Inc FOR SRM Robinson Humphrey SRH
Goldman Sachs & Co GS Sumitomo SUM
HSBC HSBC UBS UBS
ING Groep NV ING UniCredit Group UNI
Intesa Sanpaolo SA ISP U.S. Bancorp USB
Incapital LLC INC Wells Fargo Wells
Banca IMI IMI WestLB WLB
Glossary Technical abbreviations
Financial institution abbreviations
EY | Assurance | Tax | Transactions | Advisory
Ernst & Young LLP
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