New Corporates

There were a handful of drive-by offerings in the high-yield market last week, as some issuers sought to take advantage of attractive funding options and raised cash on an ad-hoc basis.

  • 23 Jan 2004
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There were a handful of drive-by offerings in the high-yield market last week, as some issuers sought to take advantage of attractive funding options and raised cash on an ad-hoc basis. Other borrowers demonstrated the continuing bid for new paper by pricing their bonds within guidance and in most cases, experiencing moves higher on the break.

* One of the more notable transactions was a drive-by offering from Allied Waste Industries , which sold a two-part, $825 million refinancing deal consisting of senior subordinated notes (Ba3/BB-) through UBS Securities , Citigroup Global Markets , and J.P. Morgan Securities . Syndicate pros said that the high-yield market swallowed such a quick transaction indicates just how strong the demand for new bonds is, because these impromptu deals are generally only sold in the high-grade market, where investors are more familiar and comfortable with borrowers and need less time to evaluate credits. The Allied Waste transaction was priced on Wednesday, with the $425 million of 6 1/8% notes due in '14 going at 212 basis points over Treasuries and $400 million of 5 3 Ž 5 % notes be consistent of '11 pricing at 221 over. The bonds were up as much as half a point by late Thursday. They are not expected to trade much higher because the waste management company still has a lot of debt outstanding, according to one portfolio manager.

 

* Procter & Gamble sold $500 million of 5 1 Ž 2 % notes due in '34 that drew investor interest for its scarcity value. The Cincinnati household goods company is part of a rare breed of double-A corporates to come to market, which helped it attract interest from investors, according to Mike Snyder , a portfolio manager at Alliance Capital Management . He did not participate in the offering but managers for other accounts at Alliance did. The bonds were priced at 68 basis points over Treasuries on Wednesday and tightened a couple basis points a day later as investors scrambled to get a piece of the action. ABN AMRO , Deutsche Bank and Goldman Sachs co-managed the deal.

  • 23 Jan 2004

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 358,291.38 1348 9.06%
2 JPMorgan 320,704.66 1461 8.11%
3 Bank of America Merrill Lynch 318,128.31 1104 8.04%
4 Goldman Sachs 236,643.87 789 5.98%
5 Barclays 231,197.41 895 5.84%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 34,591.50 163 6.58%
2 Deutsche Bank 34,293.84 117 6.53%
3 Bank of America Merrill Lynch 31,293.04 95 5.96%
4 BNP Paribas 27,578.61 168 5.25%
5 SG Corporate & Investment Banking 23,982.83 136 4.56%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 19,745.92 80 8.86%
2 Morgan Stanley 16,323.54 83 7.32%
3 Citi 15,946.50 94 7.15%
4 UBS 15,487.17 60 6.95%
5 Goldman Sachs 14,053.61 76 6.30%