Pricing prowess is only the fourth-most important factor for first-time European issuers when selecting firms to underwrite their deals, according to a PriceWaterhouseCoopers survey of 200 issuers. The consideration in selecting an arranger is track record, followed by an existing relationship. The study also found issuers value a bank's ability to offer innovative financing solutions ahead of the sheer best execution,
"A focus on arranging costs is considered short-sighted," said Kevin McGovern, senior dealer at the U.K.'s largest thrift, Nationwide. He noted the working relationship with the arranger is also very important, especially since debut deals can take up to a year to prepare. "You want to be working with someone who you can pick up the phone to anytime---on the minutiae as well as the larger issues of investor reception and distribution," said McGovern.