Search results for

Guy Hands, managing director of Nomura's Principal Finance Group, has made himself, his colleagues and his firm a fortune by using securitisation techniques to finance LBOs. Can others do the same?

THE PIPELINE of Euro-convertibles from continental and US issuers continues to grow with issuers lining up for the third and fourth quarters of 1998. However, for the next two months, convertible issuance will be eclipsed by the vast array of primary and secondary straight equity. Among the noteworthy deals in the market is the $540m offering of Lyons (Liquid Yield Option Notes) for SGS Thomson, the Franco-Italian micro-electronics group. The offering coincides with the sale of straight equity in the group which involves a capital increase and a secondary sale by the two respective government shareholders.

GLOBAL co-ordinators Merrill Lynch and Merita are preparing to launch the sale of stock in Sonera, the renamed Finland Telecom, and are due to hold beauty contests for the appointment of a selling syndicate in the next few days. The timing of the offering will largely depend on the authorities' decision concerning the sale of shares in the merged oil, gas and electricity entity, IVO Neste.

* World Bank Rating: Aaa/AAA

* Landwirtschaftliche Rentenbank Rating: Aaa/AAA

8762

* Abbey National Treasury Services Guarantor: Abbey National plc

* Province of British Columbia Rating: Aa2/AA

DESPITE months of delays due to volatility in the emerging markets debt sector, Russia's regions and republics are on course to launch a concerted assault on the Euromarkets this summer. Among the first issues likely to emerge is a $250m-plus three to five year offering for the Republic of Tatarstan via ING Barings towards the end of June. Tatarstan has a sovereign ceiling Ba3 rating from Moody's and is expected to secure a BB- rating from Standard & Poor's shortly.

WITH many continental markets closed for business on Thursday and the UK and US looking forward to a long weekend, activity in the core markets was thin. Some uncertainty over whether the FOMC would raise US interest rates put a further brake on issuance, but US trade data, German money supply figures and no change in US rates pushed government bond markets higher. With Asia still causing concern and dollar buying at an all-year low, it was a brave issuer that tapped the markets this week.

* Commerzbank AG Rating: Aa2/AA- Amount: $500m

MOST NEW issues had a rough time in the mixed market conditions in the US this week. The jittery mood on Wall St as well as the volume and size of the deals being attempted meant a number of deals had to be postponed. For now the pipeline remains busy, with several large deals expected over the coming months. But investors, it seems, have become more choosy about what they buy.