Top news

McAfee markets jumbo loan 04 Record CDS and ETF volumes 06 JD Tech to test China rules 06

IPO plans in turmoil as markets drop

„ Equities Outlook for first-quarter global IPO issuance already looks bleak despite large backlog

BY ANTHONY HUGHES, PARENTûOFûlLE
SENDINGûSERVICEû adding trillions to the money CANNOTûUSEûTHIRD
QUARTERûlNANCIALû
ROBERT VENES, FIONA LAU 7E4RANSFERûCANCELLEDûTHEûlRSTû supply during the pandemic. statements. This usually results
major European IPO of the year Wall Street bankers in lighter ECM volume as annual
ECM bankers’ hopes of another after bookbuilding on the €250m nevertheless are doing their best numbers are produced.
jumbo bonus at the end of the
year have already dimmed just
one month into 2022 as the
prospect of tighter monetary
policy and the slump in stock
prices into correction territory
have forced many issuers to
revisit their plans to go public.
In the US, January has seen
%URONEXTû!MSTERDAMûmOATûSTALLEDû
having launched with optimism
that a combination of long-term
PROlTABILITYûANDûHIGHûGROWTHûWASû
exactly what investors wanted.
Bruised by a surge in volatility
(the VIX has nearly doubled this
year to trade above 30 for much
of the past week) and a 14.7%
to remain upbeat about activity
levels over the course of the rest
of the year as they look to
execute their bloated pipelines.
In the US, eyecare health
company Bausch & Lomb, car-
sharing app Turo, mattress
retailer Mattress Firm, self-
DRIVINGûTECHNOLOGYûlRMû
The US IPO market is in “a
period of consolidation” and
“searching for equilibrium” but
could become very busy again as
soon as March or April, said
Eddie Molloy, Morgan Stanley’s
co-head of ECM in the Americas.
h4HEûMARKETûISûTRYINGûTOûlGUREû
out where to settle and what
JUSTûlVEû)0/SûPRICEûTHEûLATESTû
being the downsized US$200m
Nasdaq IPO of chipmaker Credo
Technology on Thursday.
February could be even slower as
the valuation reset means that
the average loss from last year’s
300-plus US IPOs is now above
30% (as of Thursday’s close).
Those losses have both
battered investors’ portfolios but
also massively reduced the value
of companies in the pipeline.
Hyundai Engineering pulled its
up to W1.2trn (US$1bn) IPO at the
end of bookbuilding with the
South Korean construction
company saying investors were
not valuing the company properly
(See story below). Similarly, the
Hyundai Engineering pulls IPO
„ Equities Bankers hope LG Energy Solution’s stellar debut will bring relief to new issues market
BY SUNNY TSE
HYUNDAI ENGINEERING pulled its
Korea Exchange IPO of up to
W1.2trn (US$1bn) last week after
FAILINGûTOûATTRACTûSUFlCIENTû
demand, as global market sell-
offs dented sentiment and a
construction accident in South
Korea weighed on the sector.
The construction company
said investors were not valuing it
properly when it announced the
withdrawal of the deal on Friday,
the day it was set to price the
mOATû
2 International Financing Review January 29 2022
decline in the Nasdaq Composite
Index so far in 2022, many
investors, particularly hedge
funds that often play the ECM
calendar, have decided to steer
clear of new issues.
“The majority of issuers are
waiting to see stability in the
markets before launching
transactions across products,”
said David Ludwig, global head
of ECM at Goldman Sachs.
HAWKISH TURN
Last week’s FOMC meeting only
reinforced the US Federal
Reserve’s hawkish turn late last
year as it looks to control
INmATIONûBYûRAISINGûRATESûANDû
shrinking its balance sheet after
The benchmark Kospi 200
Index dropped 6.9% during the
January 17–26 bookbuilding
period, tracking declines in
global stock markets.
Asian markets fell again on
Thursday after the US Federal
Reserve said it was likely to start
raising rates in March and
throughout this year to help
TAMPûDOWNûHIGHûINmATIONû&EARSû
also lingered over a possible
Russian invasion of Ukraine.
There was also bad news for
South Korea’s construction
industry.
-OBILEYEûlNTECHû#HIMEûANDûTHEû
life division of insurer AIG lead a
long list of 2022 IPO candidates.
“As incremental clarity emerges
on what moves the Fed actually
makes and we make our way
through earnings season, which
happens to open the window for
corporate repurchase activity, we
expect to see improving risk
appetite and broader access to the
new issue market,” Ludwig said.
GO SLOW
Conveniently, February is often a
slower month for new issues
anyway. Not only does it coincide
with the busiest weeks of the
earnings season but any company
going public after Valentine’s Day
A tough new law on worker
safety came into effect on
Thursday, just weeks after a
construction accident in mid-
January in the south-western
city of Gwangju left one worker
DEADûANDûlVEûMISSINGû3EVERALû
construction companies have
halted work on projects until
after the Lunar New Year to
avoid facing prosecution, local
media reports said.
South Korean ECM bankers
expressed caution about IPOs
after the pulled Hyundai deal.
They generally believe there is a
valuations should be and what’s
the new equilibrium,” Molloy said.
“It takes a little bit of time. When
things are volatile, it’s sometimes
HARDûTOûGETûINVESTORSûSUFlCIENTLYû
CONlDENTûABOUTûPRICINGûAûNEWû
STORYûEFlCIENTLYûnûANDûITSûHARDûTOû
take several weeks of execution
risk. So it’s sometimes better to
take a breather.
“[But] I don’t think there’s any
structural change in the way
people think about new stories
or there is some permanent
impairment. I don’t think that’s
the case at all.”
INCREASING WORRIES
The European preference to
complete IPOs using full-year
strong pipeline with abundant
capital in the market, but there
is sensitivity on valuations given
the market conditions.
Some IPO candidates will either
adjust valuations or postpone
deals, said one of the bankers.
“Investors will approach local
IPOs cautiously under current
market conditions, including the
ongoing presidential election,”
said Clepsydra Capital analyst
Sanghyun Park, who publishes
on research portal Smartkarma.
South Korea’s presidential
election is scheduled for March 9.

Aramco loan attracts pelters 08 Barclays’ US$125m hit 10 Inter refinances spiralling debts 10
numbers (rather than those from
the third quarter) usually means
THEûlRSTûMONTHûORûTWOûOFûEACHûYEARû
is quiet – last year’s busy January
was highly unusual – but bankers
are increasingly worried that a
hoped for burst in late February
and March is now unlikely. That
will be a blow as that period was
set to be very busy.
“There is a lot of resetting of
expectations around valuations
for IPOs that needs to happen
BACKEDû#HINESEûARTIlCIALû
right now,” said a head of
UPû1INGDAOû lNALûRULESûGOVERNINGûOVERSEASû
syndicate in EMEA.
“There is a disconnect between
EMEA are in greater doubt, even
though bankers note that
investors are still engaged – with
one pointing out that investors
did not pull orders from
WeTransfer – with the real issue
being the distance between
where investors want to buy and
sellers want to sell.
QUIET IN ASIA
In Asia in contrast, January is
usually a busy month as issuers
With China yet to release the
look to price before the Lunar
New Year holidays that
generally come in February.
completed in the region – the
W12.8trn (US$10.8bn) Korea
Exchange IPO of electric vehicle
battery manufacturer LG Energy
Solution.
Shares of LG Energy, a market
leader, were sold at an attractive
discount to the closest comparable
and the company made a stellar
debut with shares surging 68% on
Thursday as a result.
Others were less lucky.
3OFT"ANK
INTELLIGENCEûSTART
AInnovation Technology saw its
shares tumble 26% on debut on
@ For daily news stories
visit www.ifre.com
Estate Investment Trust
downsized its IPO to Ps5.56bn
(US$108m) on the same day.
Shares of Chinese property
developers Logan Group and
Times China Holdings plunged
15.7% and 26.8% on Thursday after
raising a combined US$301m
from equity offerings, mirroring
sell-offs in the property sector on
concerns higher interest rates will
RAISEûlNANCINGûCOSTS
listings and as concerns over the
property sector linger, bankers
issuer expectations that were (OWEVERûTHEûlRSTûMONTHûOFû Thursday after raising HK$1.18bn believe there will only be a few
pitched several months ago and the year has been exceptionally (US$151m) from a Hong Kong IPO. deals coming from Chinese
the reality of the new world in quiet with only one sizeable IPO Philippines’ Citicore Energy Real technology companies and
Europe,” he said, based on developers – traditionally the most
current early-look meetings for
deals expected to launch towards
THEûENDûOFûTHEûlRSTûQUARTERûANDû
throughout the second.
There are some names that
investors are certainly keen on at
the right price. They include Swiss
skincare business Galderma,
owned by Nordic private equity
lRMû%14û4HYSSEN+RUPPSû
hydrogen electrolysis business
.UCERAû!XELû3PRINGERSûJOBSû
website Stepstone, where
2OTHSCHILDûISûADVISINGû#OCA
#OLAû
"EVERAGESû!FRICAûANDûPRIVATEû
EQUITYûlRMû#6#û#APITALû0ARTNERS
But many of the other expected
40–50 IPOs in the pipeline across
Hyundai Engineering marketed
16m shares (4m primary/12m
DAYûPOPû sentiment had not weakened
secondary), or 20% of the enlarged
share capital, in an indicative price
range of W57,900–W75,700 each.
The price range implied a
market capitalisation of
US$3.9bn–$5.1bn. The shares
were to be listed on February 15.
The selling shareholders
included Hyundai Motor Group
executive chairman Eui-sun
Chung and honorary chairman
Mong-Koo Chung.
Hyundai Engineering and
Construction, the construction
arm of the group, is the largest
shareholder of Hyundai
Engineering with a 38.6% stake.
The group’s logistics arm,
Hyundai Glovis, holds 11.7%.
A SLOW START
FIRST-QUARTER US IPO ISSUANCE
US$bn
45
40
35
30
25
20
15
10
5 10
0 0
2012 2013 2014 2015
„ Proceeds (lhs) — No of deals (rhs)
Source: Refinitiv
Goldman Sachs, KB Securities and
Mirae Asset Daewoo LEDûTHEûmOAT
BATTERY CHARGER
Meanwhile, bankers are hoping
the stellar debut of LG ENERGY
SOLUTION will bring some relief
to the market. The electric
vehicle battery manufacturer’s
SHARESûGAINEDûûONûTHEIRûlRSTû
day of trading on the KRX on
Thursday, riding on
overwhelming demand for its
W12.8trn IPO, the country’s
largest ever.
The shares almost doubled to
W597,000 at the open,
compared with the issue price
of W300,000, before giving up
some of the gains to close at
W505,000, which still gave
International Financing Review January 29 2022
ACTIVEûISSUERSûnûINûTHEûlRSTûQUARTERû
although some encouragement
No of deals came from news that JD
90 Technology will attempt a US$1bn–
80 $2bn Hong Kong IPO (See p6).
Many hopes rest on the
70
mammoth domestic IPO of Life
60
Insurance Corp of India, which
50
could hit the market as early as
40 March. The country’s largest life
30 insurer is expected to raise
20 US$5bn–$10bn.
An EM banker said his region
was higher up the risk spectrum
2016 2017 2018 2019 2020 2021 2022 and “in a risk-off environment
EM IPOs are harder to complete”.
h3ENTIMENTûISûDElNITELYûONûTHEû
back foot,” he said. „
RETAILûINVESTORSûWHOûHADûmOCKEDû of trading if overall investment
TOûTHEûmOATûAûBIGûlRST
However, the stock dropped due to the declines in
more than 10% on Friday. global equity markets, said
More than 4.4 million retail Douglas Kim, an independent
investors put in a record analyst who publishes on
US$95bn of subscriptions for Smartkarma.
the IPO, which also drew At the closing price on
enormous demand from Thursday, LGES was valued at
institutional investors. W118.4trn, second only in
A total of 1,988 institutions, South Korea to Samsung
including 452 foreign Electronics’ W479.6trn
institutions, bid for a record market capitalisation.
US$12.8trn of shares, LGES said. Chinese rival CATL has a
The books were covered 2,023 valuation of Rmb1.34trn
times, with chunky orders from (US$210bn).
high-quality long-only and KB Securities and Morgan Stanley
sovereign funds and no price led the IPO. Bank of America,
sensitivity. Citigroup, Daishin, Goldman Sachs
The stock could have more and Shinhan Bank were
THANûDOUBLEDûONûTHEûlRSTûDAYû bookrunners. „
3
Top news
McAfee markets jumbo LBO loan
„ Loans Soaring demand for leveraged loans as inflows into funds hit a new record high
BY MATTHEW TRACY, SASHA PADBIDRI,
ELEANOR DUNCAN
Cybersecurity software provider
MCAFEE’s US$5.66bn-equivalent
term loan B backing its buyout
by an Advent International-led
investor consortium in a
US$14bn deal is expected to
enjoy a strong reception as
demand for leveraged loans
soars.
!SûmOATING
Private equity sponsors are
taking advantage of record high
LOANûDEMANDûTOûlNANCEû
leveraged buyouts, locking in
CHEAPERûlNANCINGûAHEADûOFûTHEû
rate hike, with at least eight LBO
loans, including McAfee,
expected to price within the
next two weeks.
“They’re likely to get
demand for the loan, may even
be scrapped.
“If [leads] get overwhelming
demand in the loan market,
[they’ll] nix it and print the full
amount in TLB. Let’s see what
happens,” another source said.
An investor agreed: “They’re
likely to get better execution in
the loan market because there’s
so much demand. The bond
market is the poorer performing
“[Leads] are taking feedback
on board, so we’ll see,” said a
European-based source of the
potential euro bond component.
“Europe is just under 25% of
McAfee’s business mix
geographically and the current
currency split is broadly in line
with that. But if we get
overwhelming demand in euros
RATEûASSETSûLOANSûAREû
attractive to investors in a rising
interest rate environment. For the
week ending January 19, investors
better execution in the asset class right now, whereas
2021 GLOBAL LEVERAGED VOLUME
SECOND-HIGHEST ON RECORD AT
loan market because loans are up on the year. The hot US$1.6trn
there’s so much hand is the loan market.” US$bn
demand. The bond Leads are, however, still 1,800

poured a staggering US$2.25bn
into loan funds, topping the
previous record of US$1.87bn in
weekly additions notched in
August 2013, according to
2ElNITIVû,IPPERûDATA
“My understanding is that the
order book for McAfee is going
to be massive. There’s a lot of
market is the poorer
performing asset class
right now”
McAfee is also considering
issuing US$1bn in senior secured
expected to issue US$2.3bn- 1,600
equivalent in unsecured 1,400
high-yield bonds, with no 1,200
obvious alternative for that 1,000
component in the loan market.
800
The bonds are likely to be
600
substantially US dollar-
400
DENOMINATEDûGIVENûTHEûPROlLEûOFû
McAfee’s business, but sources 200

demand for loans right now. The bonds, which would come to said leads had received a lot of 0

2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2008
2009

2021
2020
2007
market will easily absorb it,” market at the beginning of reverse enquiry from both loan
said a source familiar with the &EBRUARYûBUTûTHISûISûSTILLûINûmUXû and bond investors on the euro Americas EMEA Asia-Pacific
deal. and, depending on investors’ side. Source: LPC

Morrisons financing to provide vital test

of leveraged loan market’s capacity
„ Loans Jumbo buyout deal likely to hit screens in second half of February

BY ELEANOR DUNCAN chain MORRISONS, is expected to of this big M&A will be However, while investors have
head to the leveraged loan lNANCEDvûSAIDûAûSENIORû been taking down primary
Competition is intensifying market thanks to increased LEVERAGEDûlNANCEûBANKERûh!ûKEYû supply with ease so far this year,
AMONGûLENDERSûTOûPUTûlNANCINGSû investor demand in the face of focus for all of us is: what is the -ORRISONSûDELAYEDûlNANCINGûISû
in place for super-sized rate rises. largest LBO you can do? If you casting somewhat of a shadow
leveraged buyouts this quarter,
as private equity sponsors look
to take increasingly large
targets. But even against a
backdrop of record levels of CLO
formation, sell-siders say the key
question is how much market
capacity there is for any single
name.
4HEûlRSTûQUARTERûOFûTHEûYEARûISû
expected to see several large
acquisitions in play, as sponsors
look to put cash piles to work.
Much of the supply, on top the
long-awaited £6.6bn buyout
lNANCINGûFORû5+ûSUPERMARKETû
4 International Financing Review January 29 2022
LOOKûATû-EDLINEû2ElNITIVûANDû
“A key focus for all ThyssenKrupp, are those deals
lNANCEABLEûAGAINûINûTHISû
of us is: what is the market? Jumbo deals are going
largest LBO you can to be the focus: can we do €3.2bn
do? If you look at in one go like the amount
Medline, Refinitiv [Spanish telecom] Masmovil has
and ThyssenKrupp, outstanding?”
-ORRISONSûlNANCINGûISûBEINGû
are those deals
seen as a good test for investor
financeable again in appetite for jumbo loans. The
this market?” deal is set to include a £1.5bn
euro-denominated term loan B,
although bankers said the
“This is going to be the year tranche could be increased,
for loans, and that’s where a lot depending on demand.
over the leveraged loan pipeline,
several bankers said. Financing
for the deal – one of the largest
LBOs involving a British
company in a decade – is now
expected to come in February,
when the company will have
updated numbers, including key
#HRISTMASûTRADINGûlGURESû4HEû
deal is likely to hit screens in the
second half of February,
according to a source familiar
with the company’s plans.
While bankers still expect to
see decent demand for the deal,
they say the process has been

at the right price, the company
is willing to shift between the
two.”
BUYOUT MANIA
Demand for the deal has been
strong despite a turbulent
buyout loans that have already
hit the market this year.
In 2021, PE sponsors issued a
record 76 US LBO loans that
each totalled US$1bn or more,
as fears over the Covid
pandemic receded and
year or two, McAfee is probably
going to be one of the last areas
that will get hit,” said a portfolio
manager.
In addition, while leverage is
fairly high, investors like the
HIGHûCASHmOWSûANDûMARGINSûOFû
For daily news stories
@ visit www.ifre.com
Both tranches include a 25bp
margin stepdown upon the
consummation of an IPO and
carry 101 soft call protection for
six months.
JP Morgan is physical arranger
and admin agent.
backdrop in the stock markets
which has also fed through to
SOMEûDEGREEûTOûlXED
INCOMEû
credit. The loan book is already
nominally covered, and sources
are expecting an even larger
book as the deal progresses.
“The loan market isn’t totally
immune to the broader
backdrop but it is less volatile
than others,” said the Europe-
based source. “But if we
continue to see a very weak
macro backdrop, the loan
market will chisel down in
sympathy with equities and
HIGH
YIELDû4HEREûISûDElNITELYû
LIENûNETû INCLUDESûINVESTMENTûlRMSû
caution in the wind but there
are currently 10 deals in the
European market, and all are
seeing very robust interest and
demand.”
McAfee’s term loan B,
together with the US$5.75bn
term loan for healthcare
LIENûNETû 53MûINûEQUITYûlNANCINGû
technology company
Athenahealth are sizeable
dragging on a little. Banks
involved in the buyout had
initially pre-sounded investors
DEALMAKINGûRESUMEDû2ElNITIVû
data show.
deal.
“There is definitely
caution in the wind
but there are currently
10 deals in the
European market,
and all are seeing
very robust interest
and demand”
Both borrowers and lenders
have gravitated towards
software businesses, a sector
that has proved to be resilient
during Covid.
“Software is liked quite a bit
in the market. Part of the reason
is that the nature of its revenue
is subscription-based. So with
the chance that we go into a
cyclical downturn over the next
encourage more large deals to
come to the market,” said a
third banker. “But the rest of the
the business – and the chance to
get involved in a large liquid
RBC, UBS, BMO Capital Markets,
DEAL TERMS
McAfee’s seven-year TLB
comprises a US$4.41bn facility
and a US$1.25bn-equivalent
euro-denominated facility.
Pricing on the US dollars is
guided at 375bp–400bp over
SOFR plus a credit spread
adjustment of 10bp under a one-
month contract, 10bp under a
three-month contract and 10bp
under a six-month contract.
4HEREûAREûTWOûBPûlRST
leverage-based margin
stepdowns. It comes with a 0.5%
mOORûANDûISûOFFEREDûWITHûAûû
OID.
The euro facility is guided at
400bp–425bp over Euribor with
AûûmOORûANDûAûû/)$û4HEREû
AREûTHREEûBPûlRST
leverage-based margin step-
downs.
TELECOM ITALIA, which is
BACKEDûBYûAûõBNûlNANCINGû
package.
Arrangers are Bank of America,
Credit Suisse, Barclays, Citi, HSBC,
KKR Capital Markets, Macquarie
Capital, Mizuho, MUFG, Nomura,
Wells Fargo, BNP Paribas, CIBC,
Citizens Bank, Credit Agricole,
Fifth Third, Intesa Sanpaolo,
KeyBanc, Natixis, Societe Generale,
Standard Chartered, Stifel Nicolaus,
SMBC, TD Securities and
ScotiaBank.
Proceeds will also be used to
RElNANCEû-C!FEESûDEBTûANDûFORû
general corporate purposes.
The acquiring investor group
Permira Advisers, Crosspoint
Capital Partners, Canada
Pension Plan Investment Board,
GIC and a subsidiary of
sovereign fund Abu Dhabi
Investment Authority. The
group has also received
from PSP Investments Credit
and Neuberger Berman. „
for Morrisons to clear,” said a
fourth banker. “There are plenty
of deals out there and I think
in November, with the intention
of getting a deal away by mid-
December to avoid holding the
risk over the year-end. There
had also been market rumours
that it might come before the
end of January.
Market participants had been
hoping that leads would pull the
TRIGGERûONû-ORRISONSûlNANCINGû
sooner rather than later, to clear
the pipeline for new supply, and
were frustrated that that hadn’t
happened.
“It’s bad for the market,
PIPELINEûISûlLLINGûUPûWHICHû
means it will be facing more
competing supply soon. I would
have thought leads on the deal
would want more to price set,
than price take.”
LINING UP
$EALSûTHATûCOULDûlNDûTHEIRû
way to the European
LEVERAGEDûlNANCEûMARKETû
include US private equity
group KKR’s buyout bid for
TOP 10 UK LEVERAGED BUYOUT FINANCINGS SINCE 2000
In the sterling market,
there has been a lot of
chatter around a potential
take-private for UK high street
retailer BOOTS, in a deal that
could clock in at around £10bn.
Other sterling deals on their
way include a £3bn debt
lNANCINGûTOûBACKûTHEûSALEûOFû
UNILEVER’s tea business Ekaterra
to CVC.
“I don’t think that the
market is sitting there waiting
the market tone, even for the
other large deals we have, will
not be set by Morrisons, but by
how all the deals go over the
next couple of weeks. I think
the tone we are starting to
see is that, yes, there is
caution, yes, there are
premiums, but overall things
are going well.”
Still, if Morrisons struggles,
that could have a negative read
through to the rest of the
pipeline, although that’s
unlikely given how well it has
especially for the sterling Company Financing Size Year BEENûTELEGRAPHEDûSAIDûAûlFTHû
market,” said a second banker Alliance Boots £9.02bn 2007 banker.
of the delay. “It is creating a bit Morrisons £6.6bn 2022 “It is not a complicated story,”
of an overhang, and that in itself Acromas (Saga/AA merger) £4.8bn 2007 SAIDûTHEûlFTHûBANKERûh)TûISûVERYû
says something about liquidity Thames Water £4bn 2007 well known, and it is asset-
in the market – that there’s not Merlin Entertainments £3.7bn 2019 backed.”
so much liquidity in the market National Grid Wireless £3.4bn 2007 Goldman Sachs, BNP Paribas,
that people aren’t worried or Aggreko US$2.825bn 2021 Bank of America and Mizuho
mindful about that deal.” Paysafe US$2.6bn 2017 provided the underwritten
“Morrisons is the bellwether: Cobham US$2.16bn 2020 lNANCINGûFORû-ORRISONS
if that gets away, it will Source: LPC Additional reporting by Ed Clark „

International Financing Review January 29 2022 5

Top news
Record CDS and ETF volumes
suggest nervousness in credit
„ People & Markets Investors wait to see if credit markets are the next shoe to drop
BY CHRISTOPHER WHITTALL
Trading volumes across major
credit default swap indices and
debt exchange-traded funds
have broken records in January,
AûSIGNûOFûAûSIGNIlCANTûRESHUFmINGû
of investor exposure to
corporate credit even as bond
markets have shown remarkable
resilience in the face of this
year’s downturn in equities.
About US$800bn in volume
has changed hands across the
four main US and European CDS
indices this year up to January 26,
according to ISDA data, a third
higher than the previous January
record set in 2020. Volumes in
the iShares iBoxx $ high-yield
corporate bond ETF – the largest
The jump in activity
underlines how popular these
macro credit products have
become among investors
LOOKINGûFORûAûFASTûANDûEFlCIENTû
way to rejig positions. It also
belies a calm on the surface of
corporate bond markets, where
credit spreads have only
widened modestly so far.
Many traders and investors
are questioning how long
corporate credit can continue to
shrug off the volatility
enveloping other markets as the
US Federal Reserve moves to
wind down its stimulus
programmes and raise interest
RATESûTOûTAMEûINmATION
“This year has started off with
what feels like a regime change
“We haven’t seen that yet Trading volumes in US
percolate through to credit, but corporate bonds reached
we believe it’s only a matter of US$614bn this year through
time,” he added. Thursday, according to bond
The bumper volumes in platform MarketAxess, still
macro credit products such as some way off January 2021’s
CDS indices and ETFs suggest total of US$772bn. That
many investors have been busy contrasts with the height of the
readjusting positions, even if coronavirus pandemic in March
they’re far from running for the 2020, when record volumes of
exits just yet. nearly US$1trn passed through
the US corporate bond markets
NOTIONAL TRADED IN MAJOR as investors scrambled to
CDS INDICES IN JANUARY OF
EACH YEAR (US$bn)
overhaul their portfolios.
800
HEDGE FIRST, SELL LATER
700
It has become increasingly
600 common among investors and
500 traders to use broad-based index
products to switch their credit
400
market exposure in recent years.
300
US junk bond ETF – have also due to higher interest rates *ANUARYûTRADINGûVOLUMESûINû,1$û
surpassed January records with percolating through the system. 200 BlackRock’s investment-grade
over 770m shares trading in the That is affecting equity markets 100 ETF, have grown every year
month through Thursday, because revenue multiples from 0 since 2014 and have more than
ACCORDINGûTOû2ElNITIVûDATAûWHILEû a valuation standpoint are DOUBLEDûSINCEûû2ElNITIVû
2013
2014
2015
2016
2017
2018
2019

2021
2022*
2020

the iShares investment-grade coming down,” said Benjamin data show. The demand for
CDX IG CDX HY iTraxx Main
EQUIVALENTûh,1$vûNOTCHEDûAûHIGHû Brodsky, chief investment iTraxx Crossover macro products – which allow
of about 323m shares for the OFlCERûATû"LUE#OVEûAû,ONDON *Note: through January 26 fast execution in large size –
month. based investment manager. Source: ISDA often picks up when markets get

JD Tech tests China’s new rules

„ Equities Big name steps into regulatory minefield, as global banks lobby Beijing

BY FIONA LAU *$û4ECHûISûTHEûlRSTûMAJORûTECHû PUREûlNTECHûPLAYû!ûFEWûWEEKSû cloud and AI business to JD Tech

name to apply for an IPO since later, China clamped down on for a combined Rmb15.7bn in an
A planned US$1bn–$2bn Hong China stepped up scrutiny over THEûlNTECHûINDUSTRYûLEADINGûTOû apparent attempt to dilute the
Kong IPO of JD TECHNOLOGY is set tech giants in the country. The the last-minute cancellation of AFlLIATESûORIGINALûFOCUSûONû
TOûBEûTHEûlRSTûHIGH
PROlLEû crackdown began last July with Ant Group’s US$34.4bn Hong DIGITALûlNANCE
transaction to test China’s new an investigation of ride hailing Kong and Shanghai listing in *$û4ECHSûNEWûlLINGûHASû
rules for technology companies company Didi Global’s alleged November 2020 and that of JD ignited hopes that the IPO route
listing overseas. mishandling of data sensitive to Tech the following April. is opening up again for major
4HEûlNANCIALûTECHNOLOGYûCLOUDû
ANDûARTIlCIALûINTELLIGENCEûUNITûOFû
Chinese e-commerce giant JD.com
lLEDûWITHûTHEû#HINAû3ECURITIESû
Regulatory Commission for the
HANDû
proposed listing last week.
national security, followed by
anti-monopoly probes into
Tencent Holdings and Alibaba
'ROUPû(OLDINGûTHATûLEDûTOûlNES
*$û4ECHûHASûlRST
experience of the regulatory
units of Chinese tech giants after
“JD Tech may have the regulatory upheaval of the
got a sense of whether past year.
they can push the deal People close to the deal,
however, believe each case will
forward” be judged on its own merits.
Bank of America, Citic Securities and MINElELDû4HEûCOMPANYû h*$û4ECHûHASûlLEDûFORûANû!
SHAREû
Haitong International are leading the previously known as Jingdong IPO before and has had constant
transaction. A person familiar with $IGITSû4ECHNOLOGYûlLEDûFORûAû dialogue with the Chinese
the situation said JD Tech may Rmb20bn (US$3.1bn) Shanghai regulators. It may have got a sense
carry out a pre-IPO funding round Star IPO application in Weeks earlier, US and Hong of whether they can push the deal
ahead of the listing. September 2020 when it was a Kong-listed JD.com had sold its forward,” said one of the people.

6 International Financing Review January 29 2022

 For daily news stories
@ visit www.ifre.com

rocky, allowing investors to

reduce or increase their risk
bonds is natural given the current
economic outlook. Recessions are Pakistan upsizes
QUICKLYûRATHERûTHANûREmEXIVELYû
buying or selling individual
bonds that tend to be less liquid.
“This year has started
the greatest concern for credit
markets, raising the prospect of
investors failing to recoup all the
US dollar sukuk
money they have lent to „ Emerging Markets Islamic investors flock to sovereign
companies if defaults pick up,
off with what feels like
a regime change due to
higher interest rates”
In one notable example of
this type of behaviour, the
volume of CDS index protection
on European investment-grade
credit that investors bought in
the previous week amounted to
their largest de-risking since
February 2020, according to a
US$2.7bn at reoffer, excluding
note last Wednesday from
Barclays’ credit strategists.
“I’d argue the steadiness in
credit markets makes them
vulnerable from here,” said Yoni
Gorelov, co-head of US credit
trading at Barclays. “There could
be more downside to come,
though it might not happen
and there is nothing to suggest
that the US economy is headed in
that direction. Instead, gyrations
in equities look more like an
adjustment period for large
sections of a market dependent
on ultra-low interest rates to
justify heady valuations.
There are certainly some who
remain cautiously optimistic
about the outlook for corporate
bonds, even as the Fed moves to
unwind its extraordinary
measures put in place to revive
the economy following the
outbreak of the pandemic. A
more hawkish Fed means that
investment-grade credit spreads
should continue to have a
widening bias, BofA credit
strategists wrote in a note on
Wednesday.
Still, “factors supportive of
[high-grade] spreads remain
intact, limiting the magnitude of
BY KIT YIN BOEY, MORGAN DAVIS
PAKISTAN on Monday priced a
US$1bn seven-year bond issue at
7.95%, below initial price
guidance of 8.25%–8.375%.
The transaction was priced in
line with fair value, showing no
new issue premium despite the
rocky market backdrop, said a
banker on the trade.
The transaction was less than
half the size of Pakistan’s
conventional March 2021 deal,
which raised US$2.5bn across
THREEûTRANCHESû!û53BNûlVE
year tranche was priced at 6%, a
US$1bn 10-year at 7.375% and a
US$500m 30-year at 8.875%.
But the sovereign took a
different approach in its latest
trade, targeting sukuk investors
this time. The seven-year tenor
was a “sweet spot” for Islamic
investors and opened up a
'$0ûlGUREûWHICHûHADûINITIALLYû
been forecast at 2.3% in the
budget and later revised to 3.9%.
“That’s all very constructive,
and the investors encouraged
us to bring the transaction
even though [Monday] invited a
little bit of a pause,” said the
banker. Markets were volatile
on Monday following a
sell-off in stocks the previous
week, when US equities
suffered their worst fall since
March 2020.
The order book stood at
lead manager interest. About
81% of the deal was allocated to
the Middle East, 12% to Europe,
6% to the US and 1% to Asia.
Banks took 59%, fund managers
23%, private banks 12% and
pension funds, insurers and
agencies 6%.
Having support from Islamic
immediately.”
He added: “I wouldn’t be
surprised if some investors look
at credit as a cheap hedge.”
Some traders argue the
middling response in corporate
“Overall, the regulators are still
exercising tight control over tech
listings, especially those with
sensitive data.”
JD.com is not a major target
for Chinese regulators
compared with Alibaba and
Tencent, said another person.
The company’s shares have
been relatively resilient. The
stock is down 14% in the past
SHAREû)0/ûlLINGû roadshow, giving it the
potential widening”, the
strategists added, including
strong economic growth
momentum in the US economy
as well as the low-yield
environment across the globe. „
The proposals, announced by
the CSRC, aim to ensure that
overseas listings comply with
Chinese laws and regulations.
Companies with a variable
interest entity structure will still
be allowed to list offshore as long
as they are compliant. Beijing-
registered JD Tech has not
adopted such a structure,
ACCORDINGûTOûITSû!
syndicate banker. “Given the
DIVERSIlEDûFUNDINGûBASEûSAIDû
the banker. A single-tranche
sukuk offering will naturally not
raise as much money as a
conventional transaction would,
he said.
“The issuer understands the
volatility of the current market,”
said the banker. “They adapted
their funding needs to such a
market.”
Part of Pakistan’s strategy was
to come out early in the year,
with the understanding that
rates will be rising. While the
recent volatility was somewhat
off-putting, the issuer had the
backing of investors following a
investors in the Middle East
allowed Pakistan to push its
pricing aggressively, and to sell
with no new issue premium in a
market where a concession has
become almost mandatory, said
a syndicate banker on the trade.
Sukuk investors are less price-
sensitive, so Pakistan was able to
start price guidance in a tighter
range.
The borrower went into
the trade eyeing around
US$750m, but was able to raise
US$1bn.
“The bid we had from the
Middle East ... was very strong,
very supportive,” said the
nine months while shares of
Alibaba and Tencent are down
52% and 24% respectively.
TESTING THE RULES
China in late December
announced draft rules on
offshore listings, proposing a
requirement that all Chinese
companies – whether
incorporated in China or overseas
nûlLEûTHEIRûLISTINGûPROPOSALSûTOû
domestic regulators, thus giving
them a say on all foreign listings.
Market consultation on the
draft rules ended on January 23
BUTûTHEûlNALûRULESûHAVEûNOTûBEENû
published yet.
Global banks, through the Asia
Securities Industry and Financial
Markets Association, are reportedly
pushing back on a proposed
requirement that banks arranging
a Chinese company’s overseas
listing register with the regulator.
They believe the proposal would
increase the compliance burden of
all parties including issuers. „
International Financing Review January 29 2022
CONlDENCEûTOûLAUNCHûTHEû
banker said.
“Markets have been volatile,
so there was a bit of a risk
element to the execution,” he
SAIDû"UTûTHEûISSUERûBENElTEDû
from its rarity, the scarcity of
high-yield sovereign offerings,
and the government’s
announcement on January 20
that GDP growth was 5.37%
DURINGûTHEûûlSCALûYEARûTHATû
ended on June 30. This was the
second upwards revision to the
book growth and dynamics, we
managed to upsize.”
The notes were trading
around reoffer in the secondary
market on Tuesday.
The 144A/Reg S transaction is
structured as an ijara sukuk
offering. The notes will be rated
B3/B– (Moody’s/Fitch), in line
with the sovereign.
Credit Suisse Singapore, Deutsche
Bank, Dubai Islamic Bank PJSC and
Standard Chartered were the joint
lead managers. „
7

UniCredit hires to bolster ECM
UNICREDIT has hired several senior bankers in
its advisory and capital markets unit as part
of chief executive Andrea Orcel’s plans to
Andrea Casati has also been hired from JP
Morgan on the equity syndicate desk. He
recently worked in Hong Kong, having also
People
& Markets
RElNINGûITSûINDUSTRYûCOVERAGEûANDûISûDUEûTOû
release more details shortly.
Orcel said in December he aims to
selectively build up its M&A advisory and
equity capital markets businesses in its
investment bank as part of a three-year plan
improve its activity in the area.
Silvia Viviano has joined as head of alternative
capital markets from JP Morgan, where she was
0ACIlCû(EûPREVIOUSLYû He said he intended to hire more bankers in
head of ECM execution in EMEA.
She will be responsible for origination
and execution of private placements,
structured equity solutions, patient capital
investments and SPACs as the bank seeks to
build relationships with companies at early
stages of development.
StanChart hires Drew to head sustainability
STANDARD CHARTERED has hired former Credit
Suisse executive Marisa Drew as chief
SUSTAINABILITYûOFlCERûTOûDRIVEûITSû
sustainability and ESG push.
Drew is regarded as one of the top ESG
executives in banking and will join the Asia-
focused bank on July 1. She will chair its group
sustainability forum, drive its net zero
COMMITMENTSûANDûOVERSEEûSUSTAINABLEûlNANCEû
and sustainability strategy teams. She will
report to Simon Cooper, CEO of corporate,
Nayak to co-head Deutsche IB
DEUTSCHE BANK has appointed Ram Nayak co-
head of the investment bank alongside
existing head of the unit Mark Fedorcik.
London-based Nayak has been in charge
of the investment bank’s largest business,
worked in New York and London, and was
responsible for distribution of equities
PRODUCTSûACROSSû!SIA
worked at Goldman Sachs and UBS. He will
be based in Milan and report to Luca Falco,
head of global syndicate and capital
markets.
Riccardo Penati is also moving from JP
Morgan as head of European consumer,
retail and healthcare coverage. UniCredit is
commercial and institutional banking, and
join the CCIB management team.
Drew has been at Credit Suisse for 18 years,
but her departure was announced two weeks
ago. She was appointed as CSO and head of
sustainability strategy in August 2020, after
previously being co-head of investment
banking and capital markets for EMEA and co-
head of the global markets solutions group.
Before joining Credit Suisse, she worked for
Merrill Lynch and Kidder Peabody.
member responsible for both the
investment bank and corporate bank.
Campelli only took on that role in May
2021 after chief executive Christian Sewing
relinquished that responsibility after
TOûINCREASEûREVENUESûIMPROVEûPROlTABILITYû
and ramp up payouts to shareholders.
selected areas. In September the bank hired
Sam Kendall, who worked closely with Orcel
at UBS. He leads industry coverage across
equity and debt capital markets as well as
advisory. At UBS he was global head of ECM
when Orcel was head of the investment bank.
Christopher Spink
Standard Chartered, like many banks, is
expanding hard in ESG.
“With a presence in so many parts of the
WORLDûWHEREûSUSTAINABLEûlNANCEûCANûHAVEû
the greatest impact, we are very well placed
to help reduce emissions, mobilise capital
and develop innovative solutions,
underpinned by our digital infrastructure
and data analytics, to support the energy
transition,” Cooper said.
Steve Slater
Fedorcik has worked closely with Nayak
since Deutsche started its latest
restructuring in July 2019, and in an internal
memo seen by IFR, Campelli said the latest
move was “the best way to consolidate this
strong position”.
“This new structure will institutionalise
even greater cooperation between the two
lXEDûINCOMEûANDûCURRENCIESûSINCEûû(Eû pressure from regulators to do so. sides of our business and give equal
will continue to run that business. At that time, US-based Fedorcik, who is in representation to our two largest hubs on
Both Fedorcik and Nayak will report to charge of the origination and advisory activities, both sides of the Atlantic,” he said.
Fabrizio Campelli, the executive board was made head of the investment bank. Christopher Spink

Please contact us if you have information about job moves: peoplemarkets@refinitiv.com

„ Helge Muenkel, who DCM in Asia-Pacific. „ Australian Neil in November to „ ING has appointed „ Greece’s bank
previously headed Prior to ING, he Esho has been become senior deputy Darren Beatty as head rescue fund HFSF has
ING’s sustainable worked at UniCredit appointed secretary governor of the Bank of real estate finance appointed Nikolas
finance and global and Deutsche Bank. general of the of Canada. Esho has in Australia. Beatty Valantasis as deputy
capital markets team BASEL COMMITTEE been deputy secretary succeeds Wouter CEO, Reuters reported.
in Asia-Pacific, has ON BANKING general since July Mijnen, who returned Valantasis has held
joined DBS BANK as SUPERVISION. Esho 2014, after joining to ING’s head office several leadership
chief sustainability will have a three- the Basel Committee in Amsterdam after positions in top banks
officer. Muenkel year term leading secretariat in 2006. five years in Australia. and consulting firms,
recently left ING after the international He previously headed Beatty joined from including McKinsey,
more than 10 years standard-setter. He research at the Westpac. Citigroup, Eurobank
with the Dutch lender, succeeds Carolyn Australian Prudential and Barclays in Europe
including as head of Rogers, who left Regulation Authority. and North America.

International Financing Review January 29 2022 17

“We are pioneers here with templates
and key performance indicators”
EUROPEAN BANKING AUTHORITY’S PILAR GUTIERREZ, P22

Capital markets week ahead:

McAfee, LIC, BRF
GONE PHISHING A US$10bn package backing
THEûLEVERAGEDûBUYOUTûOFûCYBERûSECURITYûlRMû
McAfee wraps up shortly, with the loan
component set to close on Wednesday and a
parallel bond sale believed to be imminent. A
group led by Advent International and
Permira Advisers agreed in November to take
Thursday, respectively. Last week, Deutsche
Bank said it had been forced to hike bonuses
for its bankers as competition for talent rises
amid a boom in dealmaking.
OIL BE DAMNED Abu Dhabi oil giant ADNOC
could make its debut in the bond market
ABORT MISSION? Another company with a
BIGûDECISIONûISû)SRAELIûSATELLITEûlRMû)MAGE3ATû
International, which is due to open books on
Friday on its Tel Aviv listing. Proceeds will
fund planned satellite launches over the
NEXTûTWOûYEARSû4HEûSATELLITEûlRMûHASû
provided imaging services to defence and
THEûlRMûPRIVATEûAGAINûINûAû53BNûDEALûONLYû
a year after its return to public markets.
4HEû,"/ûWILLûBEûlNANCEDûWITHû53BNû
of leveraged loans, which banks hope to
shop to buyers in the US and Europe, as well
as a US$1bn revolving credit facility. The
acquisition consortium is also looking to sell
US$2.3bn of junk bonds, in what will be the
lRSTûBIGûTESTûOFûAPPETITEûFORûHIGH
YIELDû CHEMISTRY SET Dutch chemical distributor
following the recent market turbulence
linked to rising rates.
PREMIUM LISTING India takes a step closer to
welcoming the country’s largest-ever IPO,
with Life Insurance Corporation of India
EXPECTEDûTOûlLEûITSûINTENTIONûTOûmOATûWITHû
regulators. The listing, which could raise as
much as US$10bn, was meant to happen last
year but was pushed back due to delays in
this week, with expectations for a deal intelligence organisations for more than 20
growing following meetings with investors. years.
It follows its bigger rival Aramco in Saudi
Arabia, which made its debut almost three HASH PIPE Silver Spike Investment, a fund
years ago with a US$12bn sale. ADNOC has that makes bets on the cannabis industry,
already set up a debt-issuing unit and plans hopes to raise around US$125m from its
to issue up to US$5bn per year. Nasdaq listing this week. The deal already
looks to be well supported, with an
unnamed insider down to buy almost half
Caldic looks to close a €950m loan on the shares on offer. Silver Spike plans to use
Thursday that will be used to fund its proceeds from the IPO to seed new loans in
LEVERAGEDûBUYOUTûBYûPRIVATEûEQUITYûlRMû the cannabis industry.
Advent International. Goldman Sachs, its
current owner, agreed the sale in November
for an undisclosed price. Caldic deals in food
ingredients as well as products for life
sciences and industrials.
LUCKY NUMBERS Canadian asset manager
"ROOKlELDûHOPESûTOûCLOSEûAû53BNûLOANûONû
Friday that will fund its leveraged buyout of
3CIENTIlCû'AMESûLOTTERYûBUSINESSû4HEû,ASû
Vegas-based slot machine maker is selling
off various businesses as it seeks to rein in
its spiralling debts. It had looked at listing its
lottery business before agreeing to the FRY UP Indian cooking oil manufacturer
US$6bn sale in October. Adani Wilmar is expected to price its
Rs36bn (US$480m) Mumbai listing as
early as on Monday. The company, a joint
venture between Adani Enterprises and
Singapore’s Wilmar International produces
assessing how much the country’s largest
life insurer might be worth.
GAME OF CHICKEN Brazilian chicken and
pork producer BRF hopes to price a R$8bn
(US$1.4bn) share sale on Tuesday as part of
its efforts to address concerns over its
spiralling debts. The deal has prompted
widespread speculation that meat giant
Marfrig, BRF’s largest shareholder, might
use the transaction to aquire a controlling
stake without triggering poison pill rules.
GO FOR A HIKE The European investment
banking earnings season continues in
earnest, with Switzerland’s UBS set to report
on Tuesday and Spanish peers Santander
and BBVA following on Wednesday and
18
SOYAûBEANûSUNmOWERûMUSTARDûANDûRICEûBRANû
edible oils, and sells packaged pulses and
mOUR
LAST WEEK IN NUMBERS
W1.2trn – Hyundai Engineering’s pulled
BIG DECISION Technoprobe, an Italian maker )0/ûAFTERûFAILINGûTOûATTRACTûSUFlCIENTû
of testing equipment for semiconductors, is demand
expected to update on whether it plans to 7.95% – Hefty coupon attached to
formally launch its €800m Milan IPO. Pakistan’s US$1bn sukuk amid ongoing
WeRock decided to pull its planned economic issues
Amsterdam listing last week amid choppy €415m – Funds raised by Inter Milan in
markets. Technoprobe previously said it bond market, buying it time as owners
wanted to wrap up the deal by the end of consider sale
January or early February.
International Financing Review January 29 2022

Back in the office? Banks expect
February ramp-up
4HEûNUMBERûOFûBANKERSûRETURNINGûTOûOFlCEû
LIFEûINû.EWû9ORKûANDû,ONDONûSIGNIlCANTLYû
increased last week and looks set to ramp up
in February, with the likes of GOLDMAN SACHS,
JP MORGAN and CITIGROUP leading the way.
London staff were given the same date for
an increase. Under its rotation plan, staff are
TYPICALLYûINûTHEûOFlCEûABOUTûTHREEûDAYSûAû
week.
Citigroup told London staff it expects
People
& Markets
increased to 30% and is expected to soon
move to 50%–60%.
MORGAN STANLEY has not set out deadlines
FORûOFlCEûRETURNSûANDûISûTYPICALLYûMOREû
mEXIBLEûDEPENDINGûONûDIVISIONûANDûLOCATIONû
Goldman Sachs told staff in the US earlier
THISûMONTHûTHEYûSHOULDûBEûBACKûINûOFlCESû
from February 1, and after the UK
government changed guidelines bankers in
,ONDONûWEREûASKEDûTOûRETURNûTOûOFlCESûLASTû
THEMûBACKûINûTHEûOFlCEûTHREEûDAYSûAûWEEKû
and told staff in New York to step up their
return from February 7.
Most other banks have not set dates or
outlined the number of days staff will be
Still, its CEO James Gorman gave one of the
clearest signals to staff last year that bankers
SHOULDûBEûINûTHEûOFlCEûWHENûPOSSIBLEûHEû
said if an employee could go to a restaurant,
HEûORûSHEûCOULDûCOMEûINTOûTHEûOFlCE
week. That will typically involve a majority EXPECTEDûINûTHEûOFlCEûBUTûSEVERALûSAIDûTHEû There has been a mixed approach to
OFûDAYSûINûTHEûOFlCEûANDûMOREûTHANûûOFû number of people at their desk next week is RETURNINGûTOûOFlCESûACROSSûBANKSûDIVISIONSû
the bank’s 6,000 London staff were already expected to be similar to levels seen in and countries throughout the past 22
back at their desks by the middle of last September, and rise thereafter. months, but European banks have been
week. 7HILEûMANYûTRADERSûFRONT
OFlCEûSTAFFûANDû more relaxed about calling bankers back in,
The UK government scrapped its work JUNIORûBANKERSûHAVEûBEENûINûOFlCESû and that is expected to continue.
from home guidance for people in England, frequently throughout lockdown, that has BARCLAYS resumed its hybrid working
ANDûTHATûSPARKEDûAûBIGûINCREASEûINûOFlCEû often been on team rotations, and more model for staff in its investment bank in
numbers, people at several major banks MIDDLEûANDûBACKûOFlCEûSTAFFûAREûALSOûSETûTOû England on Monday following the change in
SAIDûh4HEûTRAJECTORYûWILLûDElNITELYûBEûAûBIGû return. guidance. BNP PARIBAS wants investment
rise in the next few weeks, but with quite a h7EûAREûNOWûFREEûTOûGATHERûINûOURûOFlCESû bankers in the US to return from February 7
BITûOFûmEXIBILITYvûSAIDûAûPERSONûATûONEûBANK without restriction, where we are better ANDûTOLDûTHEMûITûEXPECTSûTHEMûINûTHEûOFlCEû
Banks have had a stop-start return to able to generate the energy and at least one day a week, Reuters reported.
OFlCESûAROUNDûTHEûWORLDûINûTHEûPASTûYEARû collaborative spirit on which Citi thrives,” Staff in other countries are expected to
They had hoped for a big return in
September, but plans cooled when Covid-19
cases rose, and then a surge in cases in
December due to the Omicron variant
prompted a return to mostly working from
home.
In recent weeks banks have been
preparing to have another go. JP Morgan
told staff in the US it expects a return to
hybrid working from February 1, and
BofA boosts pay across the board
BANK OF AMERICA is boosting banker pay at all
levels for 2022, including US$1bn in special
BONUSESûFORûRANKûANDûlLEûEMPLOYEESûANDûAû
US$100,000 raise in the base pay for each
managing director in its investment bank.
The rise for MDs in the investment bank
and markets group will lift their base pay to
US$500,000.
BofA named 314 new managing directors
this year. The latest class is the most diverse
ever, with more than half of the group
the bank told London staff in a memo, seen
BYû)&2ûh7EûCONTINUEûTOûOFFERûmEXIBLEû
working, with everyone expected to be in
THEûOFlCEûATûLEASTûTHREEûDAYSûPERûWEEKv
It said staff should continue to test each
Monday, Wednesday and Friday, and rules
on wearing masks in some areas apply.
JP Morgan had about 15% of its staff in
OFlCESûINû,ONDONûANDû"OURNEMOUTHûATûTIMESû
in December and early January, but that had
The bank’s efforts to boost pay come as a
war for talent has pushed up
COMPENSATIONûATûEVERYûlNANCIALûSERVICESû
lRMû4HOSEûTRENDSûAREûEXPECTEDûTOû
continue this year.
Compensation costs last year across the
lVEûBIGGESTûBANKSûONû7ALLû3TREETûnû*0û
Morgan, Citigroup, Goldman Sachs,
Morgan Stanley and BofA – rose 15% from
2020 to US$142bn. At BofA, costs rose 10%
to US$36bn, the smallest increase among
RETURNûTOûOFlCESûLATERûTHANûINûTHEû53ûANDû5+û
and that could be a long time in places with
stringent restrictions such as Australia and
Hong Kong. Goldman is introducing a
requirement that its staff in Hong Kong have
to be vaccinated in order to return to the
OFlCEûFROMû&EBRUARYûû'OLDMANûANDûCREDIT
SUISSE told US staff in September they need
TOûBEûFULLYûVACCINATEDûTOûENTERûTHEIRûOFlCES
Steve Slater
brought its pay in line with that of its
rivals.
BofA said staff outside the investment
bank will also see an uplift. It said 97% of
its global employees are getting a stock
award – worth US$1bn in total – on top of
their regular compensation in recognition
of the bank’s record 2021 earnings.
)TûWASûTHEûlFTHûYEARûTHEûBANKûHANDEDûOUTû
such an award, reaching US$3.3bn in total
since 2017.
women and people of color, according to
sources familiar with the process. BofA did
not release a list of MD promotions.
Pay at the director level will rise by
US$100,00 as well, to about US$350,000. Pay
for vice-presidents will start at US$225,000.
THEûlVEûMATCHINGû*0û-ORGAN
JP Morgan this month lifted starting pay
for junior bankers to US$110,000, with pay
rising by US$15,000 in the second year and
another US$10,000 – to US$135,000 – in
the third year. The bank said the move
International Financing Review January 29 2022
The surging comp costs have not gone
unnoticed by bank investors, however,
who are concerned about the scale of
rising expenses and the prospect that they
could rise further this year.
Philip Scipio
19
 4HEû'ERMANûAGENCYûHASûRAISEDûõBNû BEENûAûLOTûOFûISSUANCEûATûTHEû
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h4HEûSUPPLYûONûTHEûSHORTERûENDûHASûBEENû 4HEûlVE
YEARûBENCHMARKûCAMEûONû4UESDAYû h4HEûlVE
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ALL US DOLLAR FIXED-RATE GLOBALS ALL INTERNATIONAL US$ BONDS ALL SOVEREIGN BONDS IN EUROS
BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 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 Citigroup 9 7,596.22 16.6 1 Citigroup 61 24,302.62 11.9 1 JP Morgan 10 8,211.98 16.9
2 Bank of America 9 6,515.56 14.2 2 JP Morgan 70 17,289.60 8.5 2 BNP Paribas 6 4,596.12 9.4
3 JP Morgan 6 3,515.06 7.7 3 Bank of America 58 15,724.66 7.7 3 Barclays 6 3,749.74 7.7
4 Barclays 3 3,202.03 7.0 4 Morgan Stanley 42 15,545.04 7.6 4 Nomura 4 3,649.49 7.5
5 Morgan Stanley 5 2,647.63 5.8 5 Goldman Sachs 43 9,479.81 4.6 5 Deutsche Bank 4 3,550.47 7.3
6 Deutsche Bank 2 2,529.00 5.5 6 Deutsche Bank 32 8,681.85 4.3 6 Societe Generale 3 2,980.13 6.1
7 TD Securities 3 2,396.34 5.2 7 Barclays 35 8,560.76 4.2 7 Citigroup 5 2,977.74 6.1
8 Santander 3 2,050.67 4.5 8 Credit Suisse 39 7,223.14 3.5 8 Goldman Sachs 5 2,450.58 5.0
9 Goldman Sachs 3 1,506.56 3.3 9 RBC 22 6,414.26 3.1 9 HSBC 2 1,857.13 3.8
10 MUFG 3 1,443.81 3.2 10 BNP Paribas 30 6,375.53 3.1 10 Santander 1 1,657.97 3.4
Total 16 45,728.35 Total 204 204,085.74 Total 12 48,677.02
Excluding equity-related debt, ABS/MBS. Including Euro, foreign and global issues. Excluding equity-related debt, Excluding ABS/MBS.
US Global ABS/MBS.
Source: Refinitiv SDC code: O5 Source: Refinitiv SDC code: O1 Source: Refinitiv SDC code: N4

ALL AGENCY BONDS IN EUROS ALL SUPRANATIONAL BONDS IN EUROS MUNICIPAL, CITY, STATE, PROVINCE ISSUES IN EUROS
BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 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 Barclays 4 3,342.05 14.0 1 UniCredit 2 2,830.46 19.9 1 JP Morgan 4 1,161.41 17.2

2 Societe Generale 3 3,001.63 12.6 =1 Goldman Sachs 2 2,830.46 19.9 2 Nord/LB 3 652.61 9.7
3 HSBC 2 2,752.80 11.6 3 JP Morgan 2 2,326.20 16.3 3 Goldman Sachs 3 554.07 8.2
4 JP Morgan 5 2,719.70 11.4 4 Citigroup 2 1,249.92 8.8 4 UniCredit 2 458.45 6.8
5 BNP Paribas 4 2,470.87 10.4 5 Credit Agricole 2 1,249.75 8.8 5 NatWest Markets 1 446.60 6.6
6 Goldman Sachs 2 1,611.47 6.8 6 Deutsche Bank 2 745.66 5.2 =5 Societe Generale 1 446.60 6.6
7 Commerzbank 3 1,523.71 6.4 7 HSBC 2 621.66 4.4 =5 BNP Paribas 1 446.60 6.6
8 Credit Agricole 1 1,497.81 6.3 8 Natixis 1 495.74 3.5 =5 Deutsche Bank 1 446.60 6.6
9 Deutsche Bank 2 1,493.14 6.3 9 Barclays 1 249.92 1.8 9 DGZ-DekaBank 3 380.72 5.6
10 TD Securities 2 683.00 2.9 =9 BNP Paribas 1 249.92 1.8 10 Barclays 1 371.47 5.5
Total 13 23,796.46 Total 7 14,231.72 Total 6 6,746.80

Excluding equity-related debt. Including publicly owned institutions. Excluding ABS/MBS. Excluding ABS/MBS.
Source: Refinitiv SDC code: N6 Source: Refinitiv SDC code: N5 Source: Refinitiv SDC code: N7

26 International Financing Review January 29 2022

 BONDS SSAR

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International Financing Review January 29 2022 27

 -IKEû&AVILLEûHEADûOFûCAPITALûMARKETSûATû !Mû YEARûCLIMATEûRESILIENTûBONDû SUCHûASû0ROCTERûû'AMBLEûBUTûITûHASû
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28 International Financing Review January 29 2022

 BONDS HIGH-YIELD

BONDûISSUEûFROMûAûlXEDûTOûmOATING RATEû &2.ûISSUEûALSOûWIDENSûTHEûPOTENTIALûINVESTORû RELATIVELYûSMOOTHûEXECUTIONûGIVENûITSû

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INVESTORûBASEûANDûEXEMPLIFYINGûTHEû SEENûINûTHEûLOANûMARKETûINCLUDINGû#,/Sû h)TûISNTûTOOûBIGûBUTûTHEYûAREûAûCOMPANYû
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ALL US$ DENOMINATED HIGH-YIELD BONDS ALL NON-DOLLAR DENOMINATED HIGH-YIELD BONDS h7EûTHOUGHTûITûNEEDEDûMOREûOFûAûDISCOUNTû
BOOKRUNNERS – 1/1/2022 TO DATE 1/1/2022 TO DATE TOûTHEûRELEVANTûCOMPSûANDûPRESUMABLYû
Managing No of Total Share Managing No of Total Share THEREûWEREûOTHERûPEOPLEûINûTHEûMARKETûTHATû
bank or group issues US$(m) (%) bank or group issues €(m) (%) THOUGHTûTHEûSAMEûTHINGûGIVENûTHEYûWENTûFORû
1 Goldman Sachs 13 1,920.01 9.9 1 Morgan Stanley 7 539.89 9.7 AûmOATERv
2 Bank of America 12 1,490.04 7.6 2 JP Morgan 5 425.02 7.6 "ONDSûFROMû,OXAMûANDû+ILOUTOUûWEREû
3 JP Morgan 14 1,295.62 6.7 3 Credit Suisse 3 325.04 5.8 SUGGESTEDûASûCOMPARABLESûBYûSEVERALûMARKETû
4 Citigroup 10 1,278.91 6.6 4 Goldman Sachs 4 310.09 5.6 PARTICIPANTS
5 Deutsche Bank 8 1,134.10 5.8 5 Barclays 4 305.21 5.5 2ENTASûBONDûRATEDû"""ûINû
6 Jefferies 4 1,125.00 5.8 6 Citigroup 2 262.54 4.7 COMBINATIONûWITHûAûõMûEQUITYû
7 Credit Suisse 10 1,026.25 5.3 7 Natixis 3 229.21 4.1 CONTRIBUTIONûWILLûBEûUSEDûTOûPAYûFORûITSû
8 Wells Fargo 10 879.33 4.5 8 Bank of America 3 220.00 4.0 ACQUISITIONûBYû)+û0ARTNERSûANDûRElNANCEûAû
9 Morgan Stanley 6 770.39 4.0 9 NatWest Markets 2 217.87 3.9 õMûSENIORûFACILITYûJP MorganûARRANGEDû
10 Barclays 9 661.90 3.4 10 Credit Agricole 2 213.33 3.8 THEûBOND
Total 30 19,478.74 Total 14 5,567.77 #ZECHû2EPUBLIC BASEDûPAN %UROPEANû
Including US domestics, Euro, foreign, globals. Excluding equity-related debt. Excluding equity-related debt. LOTTERYûOPERATORûSAZKAûISûLININGûUPûANû&2.ûOFû
Source: Refinitiv SDC code: B5 Source: Refinitiv SDC code: B6 ITSûOWNû,ASTûWEEKûTHEûISSUERûANNOUNCEDû
INVESTORûCALLSûFORûAûõMû.#ûSENIORû
ALL ASIAN HIGH-YIELD ISSUERS ALL EUROPEAN HIGH-YIELD ISSUERS SECUREDûmOATERûTOûBEûPLACEDûALONGSIDEûAûTAPû
1/1/2022 TO DATE 1/1/2022 TO DATE OFûITSûõMûû&EBRUARYû
Managing No of Total Share Managing No of Total Share 4HEûBONDSûAREûEXPECTEDûTOûBEûRATEDû""nûBYû
bank or group issues US$(m) (%) bank or group issues US$(m) (%) 30ûANDû&ITCHûDeutsche BankûANDûGoldman
1 Bank of America 4 875.04 9.5
SachsûAREûGLOBALûCOORDINATORSûBNP Paribas
1 Goldman Sachs 1 150.00 12.0
2 HSBC 3 117.53 9.4 2 Goldman Sachs 5 836.76 9.1
Erste GroupûHSBCûSociete Generale and
3 Credit Suisse 2 107.13 8.6 3 Morgan Stanley 7 738.98 8.1 UniCreditûAREûJOINTûBOOKRUNNERSû
4 Barclays 2 67.53 5.4 4 JP Morgan 5 608.99 6.6
=4 Standard Chartered 2 67.53 5.4 5 Jefferies 2 528.18 5.8 UK WEALTH MANAGER UPSIZES TO
6 UBS 2 60.39 4.9 6 Credit Suisse 3 495.84 5.4 REALISE TRUE POTENTIAL
7 JP Morgan 1 57.13 4.6 7 BNP Paribas 3 365.99 4.0
8 Deutsche Bank 3 355.19 3.9 TRUE POTENTIALûAû5+ûWEALTHûMANAGEMENTû
=7 Axis Bank 1 57.13 4.6
=7 Deutsche Bank 1 57.13 4.6 9 Barclays 4 345.47 3.8 lRMûMANAGEDûTOûINCREASEûTHEûSIZEûOFûITSû
10 Rabobank 1 50.00 4.0 10 Citigroup 2 299.42 3.3 INAUGURALûHIGH YIELDûBONDûLASTûWEEKûDESPITEû
Total 5 1,244.89 Total 15 9,163.55 MANYûONûTHEûBUYSIDEûHAVINGûLITTLEû
Excluding equity-related debt. Excluding equity-related debt.
KNOWLEDGEûOFûTHEûCREDITûORûCONlDENCEûINûTHEû
Source: Refinitiv SDC code: B06d Source: Refinitiv SDC code: B06c STERLINGûMARKET

International Financing Review January 29 2022 35

 4HEûISSUERûWASûTAPPINGûTHEûMARKETûTOû HAVEûBETTERûINTERACTIONûWITHû;4RUEû0OTENTIAL=û 4HEûNICHEûNATUREûOFûTHEûBONDûSTRUCTURESû
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36 International Financing Review January 29 2022

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International Financing Review January 29 2022 37

 STRUCTURED FINANCE

NEW ASSET–BACKED SUMMARY DETAILS: WEEK ENDING 28/1/2022 (CONTINUED)

Issuer Amount (m) WAL DM Bookrunner(s) Rating Asset type
GCCT 2022-2 US$9.626 1.95 EDSF+73bp RBC CM NR/NR/BBB+ ABS
GOOD 2022-1GS US$237.539 5.71 IS+105bp Goldman Sachs/Credit Suisse NR/NR/A ABS
GOOD 2022-1GS US$39.623 5.67 IS+130bp Goldman Sachs/Credit Suisse NR/NR/BBB ABS
GOOD 2022-1GS US$27.935 5.51 IS+290bp Goldman Sachs/Credit Suisse NR/NR/BB ABS
Marino Park CLO DAC €201.50 3.40 E+82bp BofA Aaa/AAA/NR CLO
Marino Park CLO DAC €30.50 5.30 E+165bp BofA Aa2/AA/NR CLO
Marino Park CLO DAC €22.50 6.00 E+215bp BofA A2/A/NR CLO
Marino Park CLO DAC €18 6.40 E+315bp BofA Baa3/BBB/NR CLO
NRMLT 2022-NQM1 US$194.5 1.92 EDSF+110bp Nomura/Amherst Securities/CS/GS/MS NR/NR/AAA RMBS
NRMLT 2022-NQM1 US$14.538 3.99 ISWAPS+145bp Nomura/Amherst Securities/CS/GS/MS NR/NR/AA RMBS
NRMLT 2022-NQM1 US$10.751 3.99 ISWAPS+172bp Nomura/Amherst Securities/CS/GS/MS NR/NR/A RMBS
NRMLT 2022-NQM1 US$8.307 3.99 ISWAPS+205bp Nomura/Amherst Securities/CS/GS/MS NR/NR/BBB RMBS
NRMLT 2022-NQM1 US$4.642 3.99 ISWAPS+300bp Nomura/Amherst Securities/CS/GS/MS NR/NR/BB RMBS
NRMLT 2022-NQM1 US$3.909 3.99 ISWAPS+400bp Nomura/Amherst Securities/CS/GS/MS NR/NR/B RMBS
PAID 2022-1 US$791.730 1.32 EDSF+110bp Cantor/Credit Suisse/Baird NR/NR/NR ABS
PAID 2022-1 US$111.150 2.76 IntS+200bp Cantor/Credit Suisse/Baird NR/NR/NR ABS
PAID 2022-1 US$123.120 3.08 IntS+350bp Cantor/Credit Suisse/Baird NR/NR/NR ABS
PEMBROKE PROPERTY €160.918 1.24 3mE+145bp Barclays/HSBC NR/AAA/NR RMBS
FINANCE 2 DAC
PEMBROKE PROPERTY €35.248 2.59 3mE+200bp Barclays/HSBC NR/AA/NR RMBS
FINANCE 2 DAC
PEMBROKE PROPERTY €36.015 3.03 3mE+285bp Barclays/HSBC NR/A/NR RMBS
FINANCE 2 DAC
PEMBROKE PROPERTY €20.689 3.06 3mE+350bp Barclays/HSBC NR/BBB/NR RMBS
FINANCE 2 DAC
PEMBROKE PROPERTY €16.091 6.06 3mE+425bp Barclays/HSBC NR/BB+/NR RMBS
FINANCE 2 DAC
PEMBROKE PROPERTY €19.923 3.06 3mE+575bp Barclays/HSBC NR/B/NR RMBS
FINANCE 2 DAC
PLNT 2022-1 US$75 - - Guggenheim/ING NR/BBB-/NR ABS
PLNT 2022-1 US$425 4.7 IntS+165bp Guggenheim/ING NR/BBB-/NR ABS
PLNT 2022-1 US$475 9.4 IntS+220bp Guggenheim/ING NR/BBB-/NR ABS
Polaris 2022-1 £384.80 2.9 Sonia+80bp Citigroup/NAB/Standard Chartered Aaa/AAA/NR RMBS
Polaris 2022-1 £24.8 4.1 Sonia+135bp Citigroup/NAB/Standard Chartered Aa2/AA/NR RMBS
Polaris 2022-1 £15.8 4.1 Sonia+150bp Citigroup/NAB/Standard Chartered A1/A+/NR RMBS
Polaris 2022-1 £11.3 4.1 Sonia+200bp Citigroup/NAB/Standard Chartered Baa2/A/NR RMBS
Polaris 2022-1 £9 4.1 Sonia+340bp Citigroup/NAB/Standard Chartered Ba2/BB+/NR RMBS
Polaris 2022-1 £4.5 4.1 Sonia+450bp Citigroup/NAB/Standard Chartered B3/B/NR RMBS
Polaris 2022-1 £11.3 - Sonia+314bp Citigroup/NAB/Standard Chartered Caa1/B/NR RMBS
Polaris 2022-1 £6.8 - Sonia+589bp Citigroup/NAB/Standard Chartered NR/NR/NR RMBS
PROG 2022-SFR1 US$191.702 7.02 IntS+90bp Barclays/BofA/DB/GS/MS/RBC CM/Wells Fargo Aaa/NR/NR ABS
PROG 2022-SFR1 US$84.792 7.02 IntS+130bp Barclays/BofA/DB/GS/MS/RBC CM/Wells Fargo Aa3/NR/NR ABS
PROG 2022-SFR1 US$27.649 7.02 IntS+165bp Barclays/BofA/DB/GS/MS/RBC CM/Wells Fargo A3/NR/NR ABS
PROG 2022-SFR1 US$36.866 7.02 IntS+185bp Barclays/BofA/DB/GS/MS/RBC CM/Wells Fargo Baa3/NR/NR ABS
PROG 2022-SFR1 US$119.077 7.02 IntS+230bp Barclays/BofA/DB/GS/MS/RBC CM/Wells Fargo NR/NR/NR ABS
PROG 2022-SFR1 US$49.474 7.02 IntS+255bp Barclays/BofA/DB/GS/MS/RBC CM/Wells Fargo NR/NR/NR ABS
PROG 2022-SFR1 US$82.211 7.02 IntS+350bp Barclays/BofA/DB/GS/MS/RBC CM/Wells Fargo NR/NR/NR ABS
PROG 2022-SFR1 US$37.382 7.02 IntS+425bp Barclays/BofA/DB/GS/MS/RBC CM/Wells Fargo NR/NR/NR ABS
STAR 2022-1 US$460.713 1.98 EDSF+120bp Credit Suisse/Deutsche Bank NR/NR/AAA RMBS
STAR 2022-1 US$27.845 3.99 IntS+145bp Credit Suisse/Deutsche Bank NR/NR/AA RMBS
STAR 2022-1 US$20.252 3.99 IntS+170bp Credit Suisse/Deutsche Bank NR/NR/A RMBS
STAR 2022-1 US$17.438 3.99 IntS+210bp Credit Suisse/Deutsche Bank NR/NR/BBB RMBS
STAR 2022-1 US$9.282 3.99 IntS+310bp Credit Suisse/Deutsche Bank NR/NR/BB RMBS
STAR 2022-1 US$11.813 3.99 IntS+410bp Credit Suisse/Deutsche Bank NR/NR/B- RMBS
TAOT 2022-A US$359.600 0.19 IL-1bp BNP Paribas/Citigroup/Lloyds/Mizuho P-1/NR/F1+ ABS
TAOT 2022-A US$555.450 0.95 EDSF+3bp BNP Paribas/Citigroup/Lloyds/Mizuho Aaa/NR/AAA ABS
TAOT 2022-A US$555.450 2.21 IntS+3bp BNP Paribas/Citigroup/Lloyds/Mizuho Aaa/NR/AAA ABS
TAOT 2022-A US$176.540 3.52 IntS+7bp BNP Paribas/Citigroup/Lloyds/Mizuho Aaa/NR/AAA ABS
THRM 2022-1 US$222.017 1.11 EDSF+110bp Goldman Sachs/Credit Suisse NR/NR/NR ABS
THRM 2022-1 US$41.331 2.66 Swap+225bp Goldman Sachs/Credit Suisse NR/NR/NR ABS

International Financing Review January 29 2022 41

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Amherst Pierpont WASûTHEûLEADûMANAGERûANDû UPGRADEDûIFûHOMEûPRICESûCONTINUEûTOûRISEû
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AGENCIESûAREûLEADINGûTHEûWAYûINûTHEû BEûUPGRADEDûPOTENTIALLYûEVENûCROSSINGûOVERû SPAC MERGER
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h!TûAûHIGHûLEVELûTHEû'3%SûAREûLIGHTûYEARSû 3ECONDARYûPRICEûACTIONûONûTHESEûNEWLY
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ALL EUROPEAN ISSUERS ALL INTL ISSUERS (EXCLUDING SELF-FUNDED)
BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 TO DATE
h7ITHûTHEûNEWûCREDITûRATINGSûTHESEû#!3û
Managing No of Total Share Managing No of Total Share
NOTESûMAYûBEûELIGIBLEûTOûBEûPURCHASEDûINûTHEû
bank or group issues US$(m) (%) bank or group issues US$(m) (%)
SECONDARYûMARKETûBYûFUNDSûTHATûREQUIREûAû
1 Bank of America 4 1,201.36 28.5 1 Barclays 12 2,850.09 11.0
RATINGûFORûINVESTMENTûANDûTHEûNOTESûAREû
2 Citigroup 3 718.80 17.0 2 Citigroup 8 2,614.70 10.1
NOWûLIKELYûTOûRECEIVEûMOREûFAVOURABLEû
3 Barclays 2 485.33 11.5 3 Bank of America 9 2,581.72 10.0
lNANCINGûTERMSûFURTHERûENHANCINGûTHEIRû
4 BNP Paribas 2 324.75 7.7 4 Credit Suisse 16 2,437.21 9.4
LIQUIDITYvûTHEûMORTGAGEûlNANCEûAGENCYûSAIDû
5 Standard Chartered 2 286.70 6.8 5 Nomura 7 2,061.22 8.0
INûAûSTATEMENTûONû*ANUARYû
6 Santander 1 253.41 6.0 6 RBC 7 1,889.70 7.3
&ANNIEûDECLINEDûTOûCOMMENTûWHETHERûITûISû
7 NAB 1 193.88 4.6 7 Morgan Stanley 7 1,713.39 6.6
SEEKINGûRATINGSûFROMûOTHERûAGENCIESûFORû
=7 Macquarie 1 193.88 4.6 8 Deutsche Bank 6 1,180.72 4.6
THESEûSECURITIES
=7 Natixis 1 193.88 4.6 9 Goldman Sachs 10 1,096.87 4.2
#24ûWHICHû&ANNIEûANDû&REDDIEû-ACûUSEûTOû
10 NatWest Markets 1 122.67 2.9 10 BNP Paribas 5 900.98 3.5
OFF
LOADûSOMEûOFûTHEûCREDITûRISKSûONû
Total 7 4,219.97 Total 46 25,873.87
MORTGAGESûTHEYûGUARANTEEûTOûPRIVATEû
Includes securitisations, credit-linked notes (Euro, foreign, global and Includes securitisations, PFI bonds and credit-linked notes. Excludes US
INVESTORSûHAVEûPERFORMEDûWELLûDURINGûTHEû
#OVIDûCRISISûBECAUSEûSTRONGûHOUSINGûDEMANDû
HASûACCELERATEDûHOMEûAPPRECIATIONû53û
HOMEûPRICESûINûûMAJORûMETROûREGIONSûWEREû
UPûûINû/CTOBERûûFROMûAûYEARû
domestics) and excludes CDOs. global ABS/MBS, CDOs and self funded issues.
Source: Refinitiv SDC code: B16n Source: Refinitiv SDC code: J10d
GLOBAL SECURITISATIONS IN STERLING SECURITISATIONS – ALL EUROPEAN RMBS
BOOKRUNNERS: 1/1/2022 TO DATE BOOKRUNNERS: 1/1/2022 TO DATE
EARLIERû30û#ORELOGICû#ASE
3HILLERûSAIDûLASTû Managing No of Total Share Managing No of Total Share
MONTH bank or group issues £(m) (%) bank or group issues €(m) (%)
h4HEûCREDITûRATINGSûONûTHESEûNOTESû 1 Bank of America 4 1,058.17 28.5
1 Bank of America 3 770.13 32.7
REmECTûMATERIALLYûBETTERûCREDITû 2 Citigroup 3 631.82 17.0
2 Barclays 2 310.33 13.2
PROTECTIONûANDûIMPROVINGûLOANû 3 Santander 1 185.33 7.9 3 Barclays 2 426.53 11.5
PERFORMANCEûWHICHûHASûREDUCEDûCREDITû 4 NAB 1 142.61 6.1 4 BNP Paribas 2 286.59 7.7
RISKûSINCEûTHEûONSETûOFûTHEûPANDEMICû)Nû =4 Macquarie 1 142.61 6.1 5 Standard Chartered 2 253.49 6.8
ADDITIONûHOMEûPRICEûAPPRECIATIONûHASû =4 Natixis 1 142.61 6.1 6 Santander 1 222.01 6.0
LEDûTOûAûBUILD
UPûOFûBORROWERûEQUITYû =4 Standard Chartered 1 142.61 6.1 7 NAB 1 171.42 4.6
RESULTINGûINûLOWERûEXPECTEDûLOSSESvû&ITCHû 8 BNP Paribas 1 125.00 5.3 =7 Macquarie 1 171.42 4.6
MANAGINGûDIRECTORû+EVINû+ENDRAûSAIDûINû =8 Citigroup 1 125.00 5.3 =7 Natixis 1 171.42 4.6
AûSTATEMENT 10 NatWest Markets 1 90.23 3.8 10 NatWest Markets 1 108.46 2.9
4HESEûONCE
UNRATEDû&ANNIEû#24ûDEALSû Total 5 2,356.93 Total 7 3,718.26
HAVEûSEENûTHEIRûCREDITûENHANCEMENTûWHICHû Including Euro, foreign, global and domestics, excluding CDOs. Including Euro, foreign, global and domestics, excluding CDOs
WASûORIGINALLYûATûBPûRISINGûONûAVERAGEûTOû Source: Refinitiv SDC code: B16i Source: Refinitiv SDC code: B10a

42 International Financing Review January 29 2022

 STRUCTURED FINANCE

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International Financing Review January 29 2022 43

 BONDS SUMMARY DETAILS

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

Saron MS+50/+55, 4 -, 40acs CS High BBB / fedafin UBS/ZKB Switz 100%. AM 35.5%, Bks/PB 33%, Ins
Saron MS+50/+52 A- / UBS BBB+ / ZKB 19.5%, Tsy 6.5%, PF 5.5%.
WPIR, Saron MS+50 BBB+ /ISS ESG C+
Not Prime
Saron MS+65/+70, 12 -, 60acs CS High BBB / fedafin UBS/ZKB Switz 100%. AM 33%, Bks/PB 21%, Ins
Saron MS+65/+67 A- / UBS BBB+ / ZKB 20.5%, PF 17%, Tsy 8.5%.
WPIR, Saron MS+65 BBB+ /ISS ESG C+
Not Prime
Saron MS+30/+40, 5 -, 28acs CS Mid A / UBS A / UBS/ZKB Switz 100%. Ins 41.76%, PF 30.59%, AM
0%%, Eidg+45, ZKB A 14.59%, Bks/PB 9.82%, Tsy 3.24%.
Saron MS+32.8

3mS+35.5 - - A3/NR/-/Cicero 2PO Danske -

3mS+850 - - - ABG/Pareto -

3mS+243 - - - Danske/SEB -

- - - NCR BBB+ Nordea -

- - - NR/AA+ Nordea -

MS+4 area, MS+1 2.5 €1.7bn, 50acs Aaa/NR/AAA SG/CA-CIB/Danske/Erste/Medio/ Fr 41%, Ger/Aus/Switz 25%, Benelux
Nordea/Scotiabank 12%, UK/Ire 9%, Nordics 8%, S.Eur 3%,
Other 2%. CB/OI 50%, Bks/PB 34%, AM
9%, Ins/PF 6%, HF 1%.
MS+11 area, MS+8 3 €690m, 43acs NR/AAA DZ/Erste/RBI/Uni Aus 45%, Ger 32%, Nordics 17%, It 5%, Other
1%. Bks 61%, AM/FM 21%, CB/OI 18%.

- - - NR/AAA Nordea -
- - - Aaa Nordea -

6.5% area, 6.5% - - Ba3/B/BB- JPM/GS/MUFG/WFS/Barc -

8/8.25%, 7.875% - - B2/B/B+ Jeff/DB/Nomura -
6.5% area, 6.5% - - - GS/Jeff/BMO/CanAc -
6.75% area, 6.75% - - - CS/CapOne -
3mL+650/+700, - - - DNB/Nordea/Pareto/SEB -
3mL+700
6.5% area, 6.5% - - Caa2/CCC/CCC+ GS/JPM/BofA/BMO/Barc/DB/MS/ -
KKR/CS/RBC/Truist/Jeff/MQB/
Miz/Nomura/WFS/BNPP/MUFG/
USB/SMBC/Key/FITB/Citizens/IMI/
Santan/TD/Scotia/Stifel/CA-CIB
Cpn 10.5% @ 97.00 - - - Jeff/Barc/BofA/CS/DB/GS/NatWest/ -
UBS
5% area, 5% - - Ba3/B+ MS/BNPP/Citi/JPM/MUFG/USB/ -
WFS/Citizens/Loop/PNC/Santan/
Siebert Williams
6.25% area, 6.125% - - - Barc/GS/MS/Citi/DB/DNB/HSBC/ -
JPM/Truist/BofA

- - - B2/B/B+ MS -

6.75/7%, 6.75% - - NR/NR/B+ GS/IMI -

5% area, 5% - - B1/B CS/UBS/GS/Barc/Lloyds/NatWest -
E+450/+475, - - B2/B/B+ JPM/Nordea/DB/DNB/SEB -
E+450 area, E+437.5

6.5% area, 6.5% - - B1/B CS/UBS/GS/Barc/Lloyds/NatWest -

99.00-100.00, 99.00 - - - DNB/Pareto -

99.75 - SKr850m - DNB/SEB/Nordea/Swed -

International Financing Review January 29 2022 47

GLOBAL DEBT: SOVEREIGN FOREIGN CURRENCY LONG-TERM RATINGS (28/1/2022)
Moody’s S&P Fitch Moody’s S&P Fitch
Sovereign 1 2 3 4 5 6 Sovereign 1 2 3 4 5 6
Abu Dhabi Aa2 – AA AA+ Ba2 AA+ Laos Caa2 n Caa2 – – Caa2 B–
Albania B1 Ba2 B+ BB – – Latvia A3 Aaa A AAA Aaa AAA
Andorra – – BBBp AAA BBB+ A+ Lebanon C Ca SD CC Ca CCC
Angola B3 B3 CCC+ CCC B– c B– Lesotho – – – – Bn B+
Argentina Ca Caa3 CCC+ CCC+ Caa3 B– Liechtenstein – Aaa AAA AAA Aaa –
Armenia Ba3 Ba1 – – B+ BB– Lithuania A2 Aaa A AAA Aaa AAA
Aruba – – BBB BBB BB BB+ Luxembourg Aaa Aaa AAA AAA Aaa AAA
Australia Aaa Aaa AAA AAA AAA AAA Macau Aa3 Aaa – – Aaa AAA
Austria Aa1 Aaa AA+ AAA Aaa AAA Macedonia (FYR) – – BB– BB BB+ n BBB–
Azerbaijan Ba2 p Ba2 BB+ BB+ Ba2 BB+ Malaysia A3 Aa2 A– n A+ Aa2 A
Bahamas Ba3 Baa3 B+ B– Baa3 – Maldives Caa1 B3 – – B3 B
Bahrain B2 n B1 B+ BB– B1 BB+ Mali Caa1 B2 – – B2 –
Bangladesh Ba3 Ba2 BB– B– Ba2 BB– Malta A2 n Aaa A– p AAA Aaa AAA
Barbados Caa1 B2 B– B– B3 Mauritius Baa2 n A1 – – A1 –
Belarus B3 n B3 Bn B B3 B Mexico Baa1 n Aa3 BBB A Aa3 BBB+
Belgium Aa3 Aaa AA AAA Aaa AAA Moldova B3 B2 – – B2 –
Belize Caa3 n Caa2 B– B– Caa2 – Mongolia B3 B3 B B+ B3 B+
Benin B1 Ba1 B+ BBB– Ba1 BB– Montenegro B1 p Baa3 B AAA Baa3 –
Bermuda A2 Aaa A+ AA+ Aaa – Montserrat – – BBB– BBB– – –
Bolivia B2 n B2 B+ B+ B2 B Morocco Ba1 Baa2 BB+ BBB Baa2 BB+
Bosnia Herzegovina B3 B3 B BB– B3 – Mozambique Caa2 Caa1 CCC+ CCC+ Caa1 B–
Botswana A3 n A1 BBB+ A A1 – Namibia Ba3 Ba1 – – Ba1 BB+
Brazil Ba2 Baa2 BB– BB+ Baa2 BB Netherlands Aaa Aaa AAA AAA Aaa AAA
Bulgaria Baa1 Aa2 BBB A Aa2 A– New Zealand Aaa Aaa AA+ AAA Aaa AAA
Burkina Faso – – CCC+ d BBB– – – Nicaragua B3 B2 B– B– B2 B–
Cambodia B2 B1 – – B1 – Nigeria B2 B2 B– B– B2 B
Cameroon B2 B1 Bn BBB– B1 B+ Norway Aaa Aaa AAA AAA AAA AAA
Canada Aaa Aaa AAA AAA Aaa AAA Oman Ba3 Ba2 B+ p BB– BB– BB+
Cape Verde – – B– B+ B– B Pakistan B3 B2 B– B– B2 B–
Cayman Islands Aa3 Aaa – – Aaa – Panama Baa2 A1 BBB n AAA A1 A
Chile A1 n Aaa A AA– Aaa A+ Papua New Guinea B2 n B1 B– B– B1 –
China A1 Aa1 A+ A+ Aa1 A+ Paraguay Ba1 Baa2 BB BB+ Baa2 BB+
Colombia Baa2 A1 BB+ BBB A1 BBB– Peru Baa1 Aa3 BBB+ n A Aa3 A–
Congo (DR) Caa1 p Caa1 CCC+ p CCC+ – – Philippines Baa2 A2 BBB+ A– A2 BBB+
Congo (Rep) Caa2 B2 CCC+ BBB– CCC B– Poland A2 Aa3 A– A+ Aa1 AA–
Cook Islands – – B+ AAA – – Portugal Baa2 Aa2 BBB AAA Aa2 AA
Costa Rica B2 Ba3 B– n BB– Ba3 B+ Qatar Aa3 Aa1 AA– AA Aa1 AA
Cote d’Ivoire Ba3 Baa3 BB– BBB– Baa3 BB Ras al–Khaimah – – A– AA+ A AA+
Croatia Ba1 A2 BBB– BBB+ A2 A– Romania Baa3 n A2 BBB– A– A2 BBB+
Cuba Ca Ca – – – – Russia Baa3 Baa2 BBB– BBB Baa2 BBB
Curacao – – BBB–n BBB– – – Rwanda B2 n B1 B+ n B+ B1 B+
Cyprus Ba1 A1 BBB– p AAA A1 A St Vincent & Gren B3 Ba3 – – – –
Czech Rep Aa3 Aaa AA– AA+ Aaa AAA San Marino – – – BB+n BBB
Denmark Aaa Aaa AAA AAA AAA AAA Saudi Arabia A1 Aa2 A– A Aa2 A+
Dominican Rep Ba3 Ba1 BB– n BB+ Ba1 BB– Senegal Ba3 Baa3 B+ BBB– Baa3 –
Ecuador Caa3 Caa2 B– B– Caa2 B– Serbia Ba2 Baa1 BB+ p BBB– Baa2 BBB–
Egypt B2 Ba3 B B Ba3 B+ Seychelles – – – – B+ BB +
El Salvador Caa1 n B2 B– n AAA B2 B Singapore Aaa Aaa AAA AAA AAA AAA
Estonia A1 Aaa AA– p AAA AA– AAA Slovakia A2 Aaa A+ AAA Aaa AAA
Eswatini B3 B1 – – B1 – Slovenia A3 Aaa AA– AAA Aaa AAA
Ethiopia Caa2 n Caa1 CCC n CCC Caa2 B Solomon Islands Caa1 B3 – – B3 –
Fiji B1 n B1 B+ B+ B1 – South Africa Ba2 Baa2 BB– BB+ Baa2 BB
Finland Aa1 Aaa AA+ AAA Aaa AAA South Korea Aa2 Aaa AA AAA AA– AA+
France Aa2 p Aaa AA AAA Aaa AAA Spain Baa1 Aa1 An AAA Aa1 AAA
Gabon Caa1 B3 – – B3 B Sri Lanka Caa2 Caa2 CCCn CCC CC B–
Georgia Ba2 Baa3 BB n BBB– Baa3 BBB– Suriname Caa3 n Caa2 SD CCC Caa2 CCC
Germany Aaa Aaa AAA AAA AAA AAA Sweden Aaa Aaa AAA AAA AAA AAA
Ghana B3 n B1 B– B B–n B– Switzerland Aaa Aaa AAA AAA AAA AAA
Greece Ba3 A3 BB AAA A3 BBB+ Taiwan Aa3 p Aaa AA p AAA Aaa AAA
Guatemala Ba1 n Baa3 BB– BB+ Baa3 BB Tajikistan B3 B3 B– B– B3 –
Honduras B1 Ba3 BB– BB – – Tanzania B2 B3 – – B1 –
Hong Kong Aa3 Aaa AA+ AAA Aaa AAA Thailand Baa1 A1 BBB+ A A1 A–
Hungary Baa2 A1 BBB A– A1 A Trinidad & Tobago Ba2 Baa1 BBB– n BBB Ba1 –
Iceland A2 Aa2 A A Aa2 A+ Tunisia Caa1 B3 – – B3 B
India Baa3 A3 BBB– BBB+ A3 BBB– Turkey B2 n B2 B+ n BB– B2 BB–
Indonesia Baa2 A3 BBB n BBB+ A3 BBB Turks & Caicos – – BBB+ AAA – –
Iraq Caa1 Caa1 B– B– Caa1 B– Uganda B2 Ba3 B B Ba3 B+
Ireland A2 p Aaa AA– AAA Aaa AAA Ukraine B3 B2 B B B2 B
Israel A1 Aa3 AA– AA+ Aaa AA UAE Aa2 Aaa – – Aaa AA+
Italy Baa3 Aa3 BBB p AAA Aa3 AA UK Aa3 Aaa AA AAA Aaa AAA
Jamaica B2 Ba3 B+ BB– Ba3 BB– USA Aaa Aaa AA+ AAA AAA n AAA
Japan A1 p Aaa A+ AA+ Aaa AAA Uruguay Baa2 A2 BBB BB– A2 BBB+
Jordan B1 Ba1 B+ BB Ba1 BB Uzbekistan B1 p B1 BB– n BB– B1 BB
Kazakhstan Baa2 A3 BBB– BBB A3 BBB+ Venezuela C C SD CC C –
Kenya B2 n Ba3 B B+ Ba3 B+ Vietnam Ba3 p Ba2 BB n BB Ba2 BB–
Zambia Ca Caa3 SD CCC– Caa3 B–
Kuwait A1 Aa2 A+ AA– AA– d AA+
Kyrgyzstan B2 n B2 – – – –
1 Moody’s Government Bonds 5 Fitch Government Bonds n Negative outlook/on watch RD Rating default c Improvement in ratings,
2 Moody’s Country Ceilings 6 Fitch Country Ceilings for downgrade * Taken off positive watch/ outlook or watch status
3 S&P Government Bonds p Positive outlook/on watch N New rating outlook d Deterioration in ratings,
4 S&P Transfer and for upgrade W Rating withdrawn ** Taken off negative watch/ outlook or watch status
Convertibility Assessments SD Selective default outlook

48 International Financing Review January 29 2022

 EMERGING MARKETS China  South Korea  Angola  Czech Republic 
Poland  Turkey  UAE  Brazil û Chile 

„ FRONT STORY ASIA

Asian bond market loses steam

First postponed deals of the year as sentiment sours
Chinese property market woes continue to drag down high-yield supply
!SIAûSAWûITSûlRSTûPULLEDûBONDûDEALSûOFûTHEû !NALYSTSûATû#REDIT3IGHTSûWROTEûINûAûPRE
GEOPOLITICALûTENSIONSûSURROUNDINGû5KRAINEû
YEARûLASTûWEEKûASûVOLATILITYûANDûAûDIPûINû PRICINGûNOTEûONû-ONDAYûTHATûFAIRûVALUEûFORû HEATûUPû4HEû30ûûINDEXûLOOKSûLIKEûITû
INVESTORûSENTIMENTûCREATEDûHOSTILEûMARKETû THEûDEALûWOULDûBEûAROUNDûû"UTûTHEû WILLûRECORDûITSûWORSTû*ANUARYûONûRECORDûASû
CONDITIONS ANALYSTSûHAVEûANûUNDERPERFORMû ITûHASûLOSTûMOREûTHANûû4HEû$OWû*ONESû
ROYAL BANK OF CANADA ANDûHEALTH AND RECOMMENDATIONûONûTHEûCOMPANYûASûTHEYû )NDUSTRIALû!VERAGEûISûDOWNûûYEARûTO

HAPPINESS INTERNATIONAL HOLDINGS HALTEDû EXPECTûITSûCREDITûPROlLEûTOûWEAKENûINûTHEû DATEûANDûTHEû.ASDAQû#OMPOSITEûHASû
!USTRALIANûDOLLARûANDû53ûDOLLARûDEALSû NEXTûSIXûTOûûMONTHSû4HEYûALSOûTHINKû DROPPEDûMOREûTHANû
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AHEADûOFûTHEû&EDSûRATEûDECISIONûONû DOWNGRADEDûBYû-OODYSûDURINGûTHATûTIME YIELDûPROPERTYûWOESûDRAGûONûKEEPINGû
7EDNESDAY #REDIT3IGHTSûNOTEDûTHATû((SûLEVERAGEû LOW
RATEDûBORROWERSûOUTûOFûTHEûMARKETû
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POSTPONINGûITSû!USTRALIANûDOLLARûlVE
YEARû ITSûACQUISITIONSû4HEûPROCEEDSûOFûTHEûBONDû
TRANSACTIONûDUEûTOûMARKETûCONDITIONSû4HEû OFFERINGûWEREûTOûBEûUSEDûTOûRElNANCEûAû WEAK HY PIPELINE
!A!!n!!ûRATEDûBORROWERûHADûGIVENû 53MûTERMûLOANûANDûAû53MûSENIORû h4HATûWILLûPUTûTHEûBRAKESûONûINVESTORSû
INITIALûGUIDANCEûATûASSETûSWAPSûANDûTHREE
REVOLVINGûCREDITûFACILITYûTHATûHADûBEENûUSEDû LOOKINGûTOûADDûONûRISKûBUTûITûISûNOTûAûFULLû
MONTHû""37ûPLUSûBPûAREAûTHEûPREVIOUSû TOûACQUIREû:ESTYû0AWSûAûPETûFOODûBRANDû STOPû)TSûAûSLOWDOWNvûSAIDûAûBANKERûATûAû
DAYûANZûCBAûDBS BankûNABûRBC Capital 4HEûACQUISITIONûWASûCOMPLETEDûINû/CTOBER %UROPEANûBANKû(EûSAIDûTHATûHISûPIPELINEû
MarketsûANDûWestpacûWEREûTHEûLEADû !ûFUNDûMANAGERûSAIDûTHATûINVESTORSû FORûHIGH
YIELDûDEALSûISûWEAK
MANAGERS SHIEDûAWAYûFROMûTHEûDEALûBECAUSEûOFûTHEû h4HEûSENTIMENTûTOWARDSûHIGH
YIELDûINû
USEûOFûPROCEEDS GENERALûISûNOTûGREATûSOûTHATSûAFFECTEDûTHEû
HIGH
YIELDûPIPELINEvûHEûSAIDû"UTûEVENû
“I can’t even count the issuers CHALLENGING MARKET INVESTMENT
GRADEûISSUERSûHAVEûNOTûBEENû
that we’re keeping on the back 4HEûPULLEDûDEALSûCAPPEDûAûDIFlCULTûMONTHû ABLEûTOûATTRACTûTHEûORDERSûTHEYûWOULDûSEEû
burner. The market is not easy”
BASEDûBANKERûSAIDûTHATû
UPûTOûTHEû,UNARû.EWû
FORûTHEûMARKET INûAûBETTERûMARKETûHEûSAID
!SIASû53ûDOLLARûBONDûSUPPLYûSLOWEDûTOûAû /NEû3INGAPORE
TRICKLEûINûTHEûLEAD
THISûMONTHûHEûHASûHADûTOûPOSTPONEûABOUTû
9EARûINûCONTRASTûTOûPASTû*ANUARIESûTHATû lVEûTOûSIXûDEALSûANDûCANCELûTWOûWHICHûHADû
WEREûBUSYûWITHûAûmURRYûOFûDEALSûBEFOREûTHEû NOTûYETûBEENûANNOUNCEDûPUBLICLY
HOLIDAYû,ASTû*ANUARYû!SIA
0ACIlCû53û h)ûCANTûEVENûCOUNTûTHEûISSUERSûTHATû
HEALTH AND HAPPINESS INTERNATIONAL DOLLARûBONDûISSUANCEûHITû53BNû WEREûKEEPINGûONûTHEûBACKûBURNERvûSAIDû
HOLDINGSûAû(ONGû+ONG
BASEDûBABYûFOODû ACCORDINGûTOû2ElNITIVûDATAû"UTûASûOFû ANOTHERûSYNDICATEûBANKERûh4HEûMARKETûISû
ANDûVITAMINûCOMPANYûALSOûFELLûVICTIMûTOû *ANUARYûûTHISûYEARûVOLUMEûHADûREACHEDû NOTûEASYv
THEûMARKETûONû-ONDAYûWHENûITûTRIEDûTOû JUSTû53BNûFORûTHEûMONTH 4HEûSYNDICATEûBANKERûRECKONSûTHATûMOSTû
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CALLûTWOû /NLYûAûFEWûDEALSûCAMEûTOûMARKETûDURINGû BANKSûINûTHEûREGIONûHAVEûAûFULLûPIPELINEû
BOND THEûWEEKûOFû*ANUARYûûWITHûMOSTûPAYINGû BUTûTHEYûAREûWAITINGûFORûAûMOREûSTABLEû
4HEûSENIORûDEALûLEDûBYûSOLEûGLOBALû UPûTOûGETûDONEûCHINA CINDA HK HOLDINGSûFORû MARKETûBEFOREûLAUNCHINGûTRANSACTIONS
COORDINATORûGoldman SachsûWASûINITIALLYû INSTANCEûONû-ONDAYûRAISEDû53BNûFROMû PETRONûAû0HILIPPINEûOILûRElNINGûANDû
MARKETEDûATûTHEûûAREAûWITHûTHEû"A""û AûûlVE
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53M PREMIUMûBANKERSûESTIMATED CONDITIONSû4HEûBORROWERûMANDATEDûSOLEû
((ûTOLDûINVESTORSûINûANûUPDATEûTHATûITû 53û4REASURYûRATESûHAVEûBEENûVOLATILEû GLOBALûCOORDINATORûHSBCûWITHûJOINTû
DECIDEDûNOTûTOûPROCEEDûWITHûTHEû2EGû3û SINCEûTHEûSTARTûOFûTHEûYEARûWITHûTHEû
BOOKRUNNERSûANDûLEADûMANAGERSûDBS Bankû
TRADEûDUEûTOûhADVERSEûMARKETûCONDITIONSvû YEARû4REASURYûYIELDûCLOSINGûATûûONû MUFGûSMBC NikkoûStandard CharteredûANDû
'OLDMANû3ACHSûDECLINEDûTOûCOMMENT
YEARû
"UTûTHOSEûAWAYûFROMûTHEûTRADEûSAWû
CALLûFOURûBONDûWITHûTHEûINTENTIONûOFû
((SûTRANSACTIONûASûAûDIFlCULTûSELLû&IVEû
OTHERû!SIANûBORROWERSûSUCCESSFULLYûCLOSEDû
53ûDOLLARûTRADESûONû-ONDAY
7EDNESDAYûAFTERûSTARTINGûTHEûYEARûATûû
ANDûPEAKINGûATûûONû*ANUARYûû53û
&EDERALû2ESERVEûCHAIRû*EROMEû0OWELLûSAIDû
ATûTHEûENDûOFûTHEûLATESTû&/-#ûMEETINGûONû
7EDNESDAYûTHATûTHEû&EDûISûLIKELYûTOûBEGINû
UBSûTOûLEADûAû53ûDOLLARû2EGû3ûSEVEN
NON
COMINGûTOûMARKETûASûEARLYûASû*ANUARYû
!ûSOURCEûWITHûKNOWLEDGEûOFûTHEûDEALû
SAIDûTHATûINVESTORSûAREûASKINGûFORûAûHIGHERû
!ûBANKERûAWAYûFROMûTHEûDEALûESTIMATEDû RAISINGûRATESûINû-ARCH YIELDûTHANûTHEûISSUERûISûWILLINGûTOûPAYû
THATû((ûWASûOFFERINGûAûPREMIUMûOFû 4HEûSTOCKûMARKETûHASûALSOûBEENûROCKYû LEADINGûTHEûCOMPANYûTOûWAIT
ABOUTûBP ASûMANYûTECHûCOMPANIESûSLUMPûANDû Morgan Davis

International Financing Review January 29 2022 49

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RE1450119/7-21
 LOANS
China 58 Hong Kong 58 Japan 59 Taiwan 59 Vietnam 60 France 60
Netherlands 61 Oman 61 UK 62 United States 63 Leveraged Loans 

„ FRONT STORY US LEVERAGED MARKET

Quest adds CSA sweetener

Software firm makes changes after investor pushback
CSA expected to disappear from market over the coming months
Software provider QUEST SOFTWARE added BPûGUIDANCEû)TûCOMESûWITHûAûûmOORû 4HEûlRST
LIENûMARGINûWILLûALSOûSTEPûDOWNû
credit spread adjustments to the rates it will
pay for a package of SOFR-based loans after
investors pushed back on the original terms.
#3!SûHAVEûBEENûINCLUDEDûINûTHEûmEXû
MONTHû lien leverage.
language of credit agreements as a pricing
ANDûANû/)$ûOFûûFROMûnûATûLAUNCH
The CSA was offered at 10bp under a one-
month contract, 15bp under a three-month
CONTRACTûANDûBPûUNDERûAûSIX
contract.
by 25bp in the event of an IPO. The banks
removed a previously offered step-down of
BPûATûûTIMESûINSIDEûCLOSINGûDATEûlRST
1UESTSûCORPORATEûRATINGSûAREû""nû&IRST
perk in the event investors seek to be better The arrangers included the CSA to make LIENûRATINGSûAREû""nûWHILEûSECOND
LIENû
compensated for the risk they take on investors more comfortable with the credit RATINGSûAREû#AA###
certain deals. In the last two months, loan WITHOUTûADDINGûANûEXTRAûBPûTOûTHEûMARGINû
lNANCINGSûHAVEûLAUNCHEDûWITHûANDûWITHOUTû
CSAs as the leveraged loan market
transitions away from Libor.
Quest Software’s loans, comprising a
53BNûlRST
ANDûINCREASINGûTHEûmOORûTHEûBANKERûSAID
“I think that pricing without a CSA would
have been a touch light, so investors in a
“I think that you’re likely to see
way view the addition of the CSA akin to the CSA disappear as a concept
LIENûTERMûLOANû"ûANDûAû mEXINGûTHEûPRICINGûBYûABOUTûBPvûTHEû in the next few months”
US$765m second-lien term loan, support BANKERûSAIDûh)FûITûREPRICEDûATûBPûTHENûWEû
PRIVATEûEQUITYûlRMû#LEARLAKEû#APITALSû wouldn’t have needed a CSA.”
acquisition of the company from Francisco
Partners and launched on January 5. HOT TOPIC
Goldman SachsûLEDûTHEûlRSTûLIENûWHILEûMorgan
Stanley led the second lien.
The switch to include CSAs in the loans’
spreads came after investor pushback
related to Quest’s small equity cushion vis-a-
vis its leverage, a banker said.
Adding a CSA has been a topic of debate in
the leveraged loan market for the last
couple of months.
With the SOFR rate currently lower than
Libor, some investors believe they would be
leaving money on the table if they accept
transactions without the adjustment.
The SOFR rate for a one-month contract
CSA GO AWAY?
"ANKSûAREûEXPECTEDûTOûCONTINUEûOFFERINGûAû
MIXûOFûLOANSûWITHûANDûWITHOUTû#3!Sû
included in their spreads. Like the Quest
loans, new deals offered without CSAs are
LIKELYûTOûINCLUDEûTHEûmEXûTOûADDûTHEMûIFû
needed.
“I think that pricing without a
CSA would have been a touch
light”
ONû*ANUARYûûWASûATûBPûAPPROXIMATELYû
BPûLOWERûTHANûTHEûBPûRATEûFORûTHEû
same Libor contract.
Most would rather not add CSAs: “The
loan market does not need another level of
“The banks are just going to see how
people respond,” the second banker said.
“And if they have to add it, they have to add
it.”
)NVESTORSûEXPECTû#3!SûTOûDISAPPEARûOVERû
COMPLEXITYvûAûSECONDûBANKERûSAID the course of the coming months.
“We’re seeing a number of deals launch “I think that you’re likely to see the CSA
without CSAs [to see] what happens,” the DISAPPEARûASûAûCONCEPTûINûTHEûNEXTûFEWû
“Some of the things that made this credit
a little bit cuspy was that [Francisco
Partners] is really a great sponsor,” the
BANKERûSAIDûh"UTû)ûTHINKûAûLOTûOFûPEOPLEû
know that they tend to put full leverage on
lRSTûBANKERûSAIDvû!NDûWEûTHOUGHTûOKAYûIFû
we can get this one through without a CSA,
then maybe we don’t need CSAs [for similar
deals]. So I think it’s going to come down to
if you’re in a hot market or have a really
months,” said Scott Macklin, director of
LEVERAGEDûLOANSûATû!LLIANCE"ERNSTEINûh3INCEû
loans are no longer being priced on Libor,
there’s less of a reason to compare the SOFR
rate to Libor levels.”
their assets.” great credit, you probably don’t need a CSA. *EREMYû"URTONûMANAGINGûDIRECTORûANDû
)NûASSIGNINGûITSû"nûCREDITûRATINGûTOû1UESTû "UTûFORûTHEûSQUISHIERûONESûITûMAKESûSENSEûTOû PORTFOLIOûMANAGERûFORûLEVERAGEDûlNANCEûATû
ONû*ANUARYûû30ûSAIDûITûEXPECTEDûLEVERAGEû HAVEûmEXûTOûADDûITûINûIFûNECESSARYv 0INE"RIDGEû)NVESTMENTSûSHAREDûTHESEû
to remain at over nine times for 12 months 4HEûEIGHT
YEARûSECOND
LIENûLOANûlRMEDûATû sentiments.
AFTERûTHEûTRANSACTIONSûCLOSINGû!VERAGEûlRST
750bp over SOFR plus a CSA, on the wide “Clearly, this is something that’s still in
LIENûDEBT
TO
%BITDAûFORûTECHûSECTORû,"/SûWASû ENDûOFûGUIDANCEûOFûBPnBPû)TûCOMESû mUXûBUTû)ûDONTûEXPECTûTHATûWEREû
just under 12 times in 2021, according to WITHûAûûmOORûANDûANû/)$ûOFûûFROMû permanently going to have new issues with
2ElNITIVû,0#ûDATA nûATûLAUNCH credit spread adjustments,” he said. “At
4HEûSEVEN
YEARûlRST
LIENûLOANSûMARGINû On top of adding the CSA, Quest reduced some point, it will be baked into the spread.”
lRMEDûATûBPûOVERû3/&2ûPLUSûAûCREDITû the size of the second lien from US$865m Matthew Tracy
SPREADûADJUSTMENTûTHEûWIDEûENDûOFûBPn ANDûMOVEDûTHEûFUNDSûTOûTHEûlRSTûLIEN Additional reporting by Michelle Sierra

International Financing Review January 29 2022 57


ASIA-PACIFIC
TRANCHEûLOANûTOû(+BNû53M û
CHINA
CHINA FORESTRY UNIT SEEKS LOAN
A unit of state-owned CHINA FORESTRY GROUP
has launched a US$168m three-year term
loan into general syndication for
RElNANCINGûANûEXISTINGûBORROWINGûFROMû
2019.
Mizuho Bank is the original mandated lead
arranger and bookrunner of the bullet loan,
which pays an interest margin of 185bp over
the aggregate daily SOFR and credit
adjustment spread.
MLAs will earn top-level all-in pricing of
215bp for commitments of US$30m and
above via a participation fee of 90bp, while
lead arrangers receive an all-in of 205bp for
53MnMûVIAûAûBPûFEEû!RRANGERSû
EARNûANûALL
INûOFûBPûFORû53MnMû GREEN LOAN
VIAûAûBPûFEE
Subsidiary CFPC Singapore is the
borrower, while China Forestry Group,
which is indirectly and wholly owned by the
YEARû JACOBSON PHARMA SEEKS HK$1bn
State Council, is the guarantor.
0ROCEEDSûRElNANCEûAûLOANûOFûIDENTICALûSIZEû
signed in May 2019, as well as for general
corporate funding purposes.
That borrowing paid a top-level all-in of
200bp based on a margin of 185bp over
Libor.
Standard Chartered Bank was the sole
mandated lead arranger and bookrunner of
the bullet transaction.
MLA is Tai Fung Bank. Lead arrangers are
SPD Silicon Valley Bank, Macau Development
Bank, Woori Bank, Bank of East Asia, Bank of
Nanjing, Bank of Ningbo, Hang Seng Bank and
Shanghai Rural Commercial Bank. Arrangers are
Chong Hing Bank, Bank Negara Indonesia and
Cathay Bank.
The borrowing is likely to be increased
further via a greenshoe option.
It offered top-level all-in pricing of 230bp
via an interest margin of 160bp over Libor.
The borrower is Huayou (Hong Kong),
while parent Huayou Cobalt is providing a
guarantee.
Proceeds will be used for general
CORPORATEûANDûRElNANCINGûPURPOSES
HONG KONG
HYSAN/CHINACHEM JV RAISES
211.67bp via an interest margin of 190bp
A jo int venture between Hysan
Development and Chinachem Group has
RAISEDûAû(+BNû53BN ûlVE
green loan for the development of a
commercial project in Hong Kong’s
#AUSEWAYû"AYûDISTRICT
The loan is split into a HK$7.91bn portion
TOûRElNANCEûUPûTOûûOFûTHEûTOTALûSUMûOFû
land premium paid for the project, and a
(+BNûPORTIONûTOûlNANCEûORûRElNANCEû
UA FINANCE UPS LOAN TO HK$4.8BN
UNITED ASIA FINANCE has more than doubled a
DUAL
from an original HK$1.8bn target after
attracting 19 lenders in general syndication.
Bank of East Asia, Mizuho Bank and Standard
Chartered were the mandated lead arrangers
and bookrunners of the borrowing, which is
equally split into a term loan and a revolving
credit facility.
Mandated lead arrangers are Fubon
Financial Holding, Bank of Communications,
Cathay United Bank, China Construction Bank,
Chong Hing Bank, CMB Wing Lung Bank and Tai
Fung Bank. Lead arrangers are Mega
International Commercial Bank, OCBC Wing
Hang and Ping An Bank. Arrangers are China
Minsheng Banking Corp, Dah Sing Bank,
Sumitomo Mitsui Trust Bank, Chang Hwa
Commercial Bank, China Citic Bank International,
Chiyu Banking Corp, Taiwan Cooperative Bank,
!OZORAû!SIAû0ACIlCû&INANCE and Bank of Panhsin.
The deal offered top-level all-in pricing of
over Hibor and an average life of three years.
Funds are for general corporate purposes.
Hong Kong-based Jacobson Pharma Corp is
in the market with a HK$1bn (US$128m)
three-year loan.
HSBC is the mandated lead arranger and
bookrunner of the transaction, which offers
an interest margin of 150bp over Hibor and
China Forestry Group acquires and UPûTOûûOFûTHEûCONSTRUCTIONûCOSTûACCORDINGû has an average life of 2.5 years.
manages forest resources, harvesting, wood TOûAû(YSANûSTOCKûEXCHANGEûlLINGûONû MLAs committing HK$300m or above will earn
PRODUCTSûTRANSPORTATIONûSALESûANDûEXPORTS
HUAYOU COBALT DOUBLES LOAN
3HANGHAI
LISTEDûCOBALTûRElNERûHUAYOU COBALT
has more than doubled its debut offshore
syndicated loan to US$208.5m from an
Wednesday. a top-level all-in pricing of 185bp via a 87.5bp fee,
The loan offers an interest margin of 75bp WHILEûLEADûARRANGERSûTAKINGû(+MnMû
over Hibor. will earn an all-in of 178bp via a 70bp fee.
Bank of China (Hong Kong), China Construction The Hong Kong-listed pharmaceutical
Bank Hong Kong branch, DBS Bank (Hong Kong), company is providing a guarantee for the
HSBC, Hang Seng Bank, and Industrial and loan, while wholly owned subsidiary
Commercial Bank of China (Asia) are lenders. JACOBSON GROUP TREASURY is the borrower.
original US$100m target. "/#û$"3û(3"#ûANDû)#"#û!SIAûWEREûGREENû Proceeds will be used for general working
loan coordinators. CAPITALûANDûRElNANCING
ASIA-PACIFIC LOANS BOOKRUNNERS – FULLY PATCHWAY HOLDINGS (HK), a Hong Kong-

SYNDICATED VOLUME (INCLUDING JAPAN) INCORPORATEDû ûJOINTûVENTUREûBETWEENû CK ASSET HOLDINGS LANDS SLL
BOOKRUNNERS: 1/1/2022 TO DATE Hysan and Chinachem, is the borrower.
Managing No of Total Share Hysan and Chinachem are guaranteeing Hong Kong-listed conglomerate CK ASSET
bank or group issues US$(m) (%) ûANDûûOFûTHEûLOANûRESPECTIVELY HOLDINGS has closed a HK$2bn (US$256.8m)

1 MUFG 14 901.02 20.8 In May 2021, Hysan and Chinachem sustainability-linked loan with MUFG.
2 First Financial Hldg 2 781.89 18.1 jointly won the tender for the commercial The bilateral SLL will go towards
3 Mizuho 4 560.40 13.0 SITEûONû#AROLINEû(ILLû2OADûINû#AUSEWAYû"AYû supporting the business requirements and
4 Standard Chartered 2 413.99 9.6 for HK$19.8bn. environmental, social and governance
5 Taiwan Coop Finl Hldg 3 251.82 5.8 The project has a number of sustainable objectives of CKA.
6 Land Bank of Taiwan 1 207.92 4.8 features, including 60,000 sq ft of green The facility is tied to sustainability
7 Bank of East Asia 1 205.49 4.8 landscape in the form of an urban park, development goals to help CKA achieve its
8 Chang Hwa Comml Bk 1 150.00 3.5 footbridge connections, as well as measures greenhouse gas emissions targets.
9 United Overseas 1 141.18 3.3 TOûENHANCEûRESOURCEûEFlCIENCYûINûAREASûSUCHû Meanwhile, a unit of Shanghai-listed
10 HSBC 1 123.50 2.9 as energy consumption, renewable energy, water utility company BEIJING CAPITAL ECO-
Total 32 4,324.30 waste management and water conservation, ENVIRONMENT PROTECTION GROUP, formerly

Proportional credit ACCORDINGûTOû(YSANû#OMPLETIONûISûEXPECTEDû KNOWNûASû"EIJINGû#APITALûHASûOBTAINEDûAû

Source: Refinitiv SDC code: S3a in 2026. HK$1.3bn (US$167m) one-year green facility.

58 International Financing Review January 29 2022

 LEVERAGED LOANS

The eight-year second-lien loan is offered 4HEûSEVEN
YEARûLOANûISûOFFEREDûATûBPû SOFR plus a 10bp credit spread adjustment,
ATûBPnBPûOVERû3/&2ûPLUSûAûBPû OVERû3/&2ûWITHûAûûmOORûANDûANû/)$ûOFû WITHûAûûmOORûANDûAûû/)$
CREDITûSPREADûADJUSTMENTûWITHûAûûmOORû n The incremental loan is fungible with an
and a 98.5 OID. It comes with 101 soft call protection for EXISTINGûlRST
LIENûTERMûLOANûWHICHûWASû
4HEûlRST
LIENûLOANûCOMESûWITHûûSOFTûCALLû SIXûMONTHS ISSUEDûINû*ANUARYûûATûBPûOVERû,IBORû
PROTECTIONûFORûSIXûMONTHSû(ARDûCALLûPROTECTIONû Credit Suisse, Barclays, UBS, Natixis, WITHûAûûmOOR
on the second-lien loan will kick off at 102 Scotiabank, Banco Santander and Credit Agricole 4HEûEXISTINGûLOANûWILLûTRANSITIONûTOûTHEû3/&2û
before dropping to 101 and then par. are arranging the deal. benchmark to match the incremental loan.
#ORPORATEûRATINGSûAREû""nû&IRST
LIENû 5lNETûISûOWNEDûBYûPRIVATEûEQUITYûSPONSORû Credit Suisse is arranging the deal.
RATINGSûAREû""nûWHILEûSECOND
LIENûRATINGSû Cinven. #ORPORATEûRATINGSûAREû""nûANDûFACILITYû
AREû#AA### %XPECTEDûCORPORATEûANDûFACILITYûRATINGSûAREû RATINGSûAREû""
Deutsche Bank is lead-left arranger on the ""n Construction company WHITE CAP is
lRST
LIENûLOANû*OINTûBOOKRUNNERSûAREûUBS, Medical practice PEDIATRIC ASSOCIATES REPRICINGûAû53BNûTERMûLOANû"
Wells Fargo, BMO and RBC. LAUNCHEDûAû,IBOR
BASEDû53MûlRST
LIENû The loan, which matures in October 2027,
5"3ûISûLEADINGûTHEûSECOND
LIENûLOANûWHILEû term loan that will fund a recapitalisation is offered at 350bp over SOFR, at par, with a
$EUTSCHEû"ANKûISûAûBOOKRUNNER and partial equity sale of the business. ûmOOR
Clearlake Capital made a new equity The seven-year loan is offered at 350bp over It comes with 101 soft call protection for
investment in the company this month, ,IBORûWITHûAûûmOORûANDûANû/)$ûOFû SIXûMONTHS
MAKINGûITûANûEQUALûPARTNERûWITHûEXISTINGû It comes with 101 soft call protection for Deutsche Bank is the lead-left bookrunner.
investor Symphony Technology Group. SIXûMONTHS RBC, Regions Bank, Wells Fargo, US Bank, BNP
Retail brand management company WHP Credit Suisse, Goldman Sachs, Deutsche Bank Paribas, Credit Suisse, Goldman Sachs and
GLOBAL LAUNCHEDûAû53MûSENIORûSECUREDûTERMû and Citizens Bank are arranging the Mizuho are also bookrunners.
LOANû"ûTHATûWILLûRElNANCEûAûTERMûLOANûCAPITALISEû
its balance sheet for future acquisitions and fund
a shareholder distribution.
4HEûlVE
YEARûCOVENANT
LITEûLOANûHASûPRICEû MOBILEUM RAISING US$695m
GUIDANCEûOFûBPûOVERû3/&2ûWITHûAûû
mOORûANDûANû/)$ûOFûBETWEENûûANDûû)Tû
LIENûTERMû
comes with 101 soft call protection for 12
MONTHSûANDûWILLûAMORTISEûATûûPERûANNUM
#ORPORATEûANDûFACILITYûRATINGSûAREû""n
transaction.
#ORPORATEûANDûFACILITYûRATINGSûAREû""
Telecoms analytics provider MOBILEUM is
seeking US$695m in loans to fund private
EQUITYûlRMû()'û#APITALSûACQUISITIONûOFûAû
majority stake in the company.
#ORPORATEûANDûFACILITYûRATINGSûAREû""
APEX DRILLS FOR REFINANCING
Power tool manufacturer APEX TOOL is raising
Aû53MûSENIORûSECUREDûlRST
loan that, together with a privately-placed
US$350m second-lien term loan and new
cash equity from private equity sponsor
Morgan Stanley is lead-left bookrunner and 4HEûlNANCINGûCOMPRISESûAû53Mû "AINû#APITALûWILLûRElNANCEûTHEûCOMPANYSû
administrative agent. Deutsche Bank and SENIORûSECUREDûlRST
LIENûTERMûLOANûAû capital structure.
Credit Suisse are also bookrunners. 53MûDELAYEDûDRAWûlRST
LIENûTERMûLOANû 4HEûSEVEN
YEARûLOANûISûOFFEREDûATûBPnBPû
a US$160m senior secured second-lien term over SOFR plus a credit spread adjustment, with
TRICOR MARKETS BUYOUT LOAN LOANûANDûAûlVE
YEARû53MûREVOLVER AûûmOORûANDûANû/)$ûOFûn
0RICINGûONûTHEûSEVEN
YEARûlRST
LIENûTERMû The CSA is set at 10bp for one-month
"USINESSûSERVICESûPROVIDERûTRICOR launched a LOANûISûOFFEREDûATûBPnBPûOVERû3/&2û SOFR, 15bp for three-month SOFR and 25bp
53MûlRST
LIENûTERMûLOANûTHATûTOGETHERû plus a credit spread adjustment, with a FORûSIX
MONTHû3/&2
with a pre-placed US$260m second-lien ûmOORûANDûAûû/)$ It comes with 101 soft call protection for
TERMûLOANûWILLûlNANCEûTHEûCOMPANYSû It comes with 101 soft call protection for SIXûMONTHS
BUYOUTûBYûPRIVATEûEQUITYûSPONSORû"ARINGû SIXûMONTHS Barclays is the lead-left arranger and
Private Equity Asia. Pricing on the eight-year second-lien term administrative agent.
4HEûSEVEN
YEARûLOANûISûOFFEREDûATûBPn loan is offered at 825bp over SOFR plus a The company has a US$158.1m revolving
BPûOVERû3/&2ûPLUSûAûCREDITûSPREADû #3!ûWITHûAûûmOORûANDûAûû/)$ CREDITûFACILITYûDUEûINû!UGUSTûûAû
ADJUSTMENTûWITHûAûûmOORûANDûANû/)$ûOFû Hard call protection on the second-lien US$960m senior secured term loan due in
n loan will start at 102 before dropping to 101. !UGUSTûûANDû53MûINûSENIORû
The CSA is offered at 10bp for one-month Each loan comes with a 25bp leverage-
SOFR, 15bp for three-month SOFR and 25bp based step-down. US LEVERAGED LOANS
FORûSIX
MONTHû3/&2 The CSA is offered at 10bp for one-month BOOKRUNNERS: 1/1/2022 TO DATE
It comes with 101 soft call protection for SOFR, 15bp for three-month SOFR and 25bp Managing No of Total Share
SIXûMONTHS FORûSIX
MONTHû3/&2 bank or group issues US$(m) (%)
The borrower is also raising a US$130m The 18-month DDTL will be sold as a strip 1 Citigroup 4 485.30 11.6
revolving credit facility. WITHûTHEûlRST
LIENûLOANû4ICKINGûFEESûKICKûOFFû 2 Wells Fargo 4 480.30 11.4
Barclays is the lead-left bookrunner and ATûûOFûTHEûSPREADûAFTERûûDAYSûTHENûû 3 MUFG 3 446.96 10.7
administrative agent. of the spread after 90 days. 4 US Bancorp 3 441.96 10.5
Goldman Sachs, HSBC, Nomura, MUFG, Credit The arrangers are Jefferies, Macquarie, UBS, 5 JP Morgan 3 374.05 8.9
Agricole and Standard Chartered are joint Antares Capital, KKR, Barclays and Stifel. 6 BNP Paribas 2 341.96 8.2
bookrunners. Healthcare technology company SYMPLR is 7 Bank of America 3 249.58 5.9
#ORPORATEûRATINGSûAREû"""ûANDûlRST
LIENû RAISINGûANûINCREMENTALû53MûlRST
LIENû 8 Morgan Stanley 1 235.71 5.6
RATINGSûAREû""" term loan that, together with a US$90m 9 KeyBanc CM 2 211.25 5.0
Fibre optic company UFINET is raising a privately placed second-lien term loan, will 10 Barclays 2 144.58 3.4
COVENANT
LITEû53BNûlRST
LIENûTERMû fund the acquisition of peer Midas. Total 5 4,195.00
loan that will fund an undisclosed The covenant-lite loan, which matures in Excluding Project Finance.
acquisition. $ECEMBERûûISûSTILLûOFFEREDûATûBPûOVERû Source: Refinitiv SDC code: P2

International Financing Review January 29 2022 65

unsecured notes due in February 2023, !ûTICKINGûFEEûWASûALSOûINTRODUCEDû)TûISûû The CSA is set at 10bp for one-month
according to an S&P report published in OFûTHEûSPREADûKICKINGûOFFûONûDAYûûAFTERûTHEû SOFR, 15bp for three-month SOFR and 25bp
December. DEALûCLOSESûINCREASINGûTOûûONûDAYû FORûSIX
MONTHû3/&2
Concrete supplier FOLEY PRODUCTS launched The most-favoured nation clause was It comes with 101 soft call protection for
Aû53MûlRST
LIENûTERMûLOANûTHATûWILLû revised to 50bp for 36 months with no dollar SIXûMONTHSûANDûAMORTISESûATûûPERûANNUMû
fund a recapitalisation after private equity basket carve-out, versus 50bp for 12 months paid quarterly, with the remainder due at
lRMû/AKTREEû#APITALû-ANAGEMENTûTOOKûAû with a dollar basket carve-out at launch. maturity.
ûSTAKEûINûTHEûCOMPANY The loan, together with other secured Citigroup was the lead-left arranger and
The seven-year covenant-lite loan is debt, in addition to an IPO and related debt administrative agent. PNC, Bank of America and
OFFEREDûATûBPnBPûOVERû3/&2ûPLUSûAû lNANCINGûFROMû"AUSCH,OMBûWILLûRElNANCEû Morgan Stanley were joint-lead arrangers.
CREDITûSPREADûADJUSTMENTûWITHûAûûmOORû AûTERMûLOANû"ûANDûREDEEMûTWOûSETSûOFûSENIORû KeyBank, US Bank and HSBC were co-managers.
and an OID of 99. notes due in 2025. The company’s decision to use funds from
The CSA is offered at 10bp for one-month "AUSCH,OMBûTHEûEYEûHEALTHûBUSINESSûOFû its US$500m revolving credit facility due in
SOFR, 15bp for three-month SOFR and 25bp "AUSCHû(EALTHûlLEDûANû)0/ûPROSPECTUSûONû ûTOûPARTIALLYûFUNDûTHEûACQUISITIONûISû
FORûSIX
MONTHû3/&2 January 13 as part of its spin-off. “aggressive,” according to a Moody’s report.
It comes with 101 soft call protection for #ORPORATEûRATINGSûAREû"""ûANDûlRST
4HEûANALYSTSûALSOûmAGGEDûTHATûRATINGSû
SIXûMONTHS LIENûRATINGSûAREû"A"""" COULDûBEûDOWNGRADEDûIFûTHEûDEBT%BITDAûLEVELû
Credit Suisse and Truist are leading the deal. #LOUD
BASEDûHUMANûRESOURCESûlRMûTEMPO, RISESûABOVEûûTIMESûORû%BITDAINTERESTû
#ORPORATEûANDûFACILITYûRATINGSûAREû"" which does business as Alight Solutions, has EXPENSEûDECLINESûBELOWûûTIMES
Retailer AMERICAN TRAILER WORLD is seeking a lNALISEDûTERMSûFORûAû53BNûTERMûLOANû"û There are three mandatory pre-payments
53MûFUNGIBLEûADD
ONûlRST
LIENûTERMû THATûWILLûRElNANCEûAûTERMûLOANûDUEûINû included in the loan agreement. The pre-
loan that will repay borrowings under an The loan, which matures on August 31 2028, PAYMENTSûINCLUDEûûOFûEXCESSûCASHmOWû
asset-based lending facility and fund a one- PRICEDûATûBPûOVERû3/&2ûWITHûAûûmOORû WITHûLEVERAGE
BASEDûSTEP
DOWNSûTOûûANDû
time shareholder distribution.
ORDINARYû
The loan, which matures in March 2028,
is offered at 375bp over SOFR plus a credit
BASEDûSTEP
The OID was tightened to 99.875 from 99.75. ûûOFûTHEûNETûPROCEEDSûOFûNON
It comes with 101 soft call protection for course asset sales and casualty events, with
SIXûMONTHSûBank of America arranged the deal. LEVERAGE
DOWNSûTOûûANDûû
SPREADûADJUSTMENTûWITHûAûûmOORûANDûANû The company has also amended terms of a subject to reinvestment rights within 18
OID of 99. 53MûTERMûLOANû"ûDUEûINûûTOûBPû MONTHSûWITHûAûSIX
MONTHûEXTENSIONûFORû
The CSA is set at 10bp for one-month
SOFR, 15bp for three-month SOFR and 25bp
FORûSIX
MONTHû3/&2
4HEûLOANûAMORTISESûATûûPERûANNUM
OVERû3/&2ûATûPARûWITHûAûûmOOR COMMITTEDûAMOUNTSûINûADDITIONûTOûûOFû
The pro forma size of the entire facility the net proceeds from the incurrence of
WILLûBEûAPPROXIMATELYû53BNû4HEREûISû non-permitted debt.
no credit spread adjustment for both loans. The loan is guaranteed by the holding
Goldman Sachs is the lead-left arranger. Middle market insurance brokerage COMPANYûANDûEACHûEXISTINGûANDûFUTUREû
ATW’s pro forma debt structure includes ASSUREDPARTNERS has priced a non-fungible direct and indirect, wholly owned US
Aû53BNûTERMûLOANû"ûAû53Mû incremental US$850m term loan, increased restricted subsidiary of the holding
REVOLVINGûCREDITûFACILITYûANDûAû53Mû!",û FROMû53MûTHATûWILLûlNANCEûMERGERû COMPANYû)TûISûSECUREDûBYûAûPERFECTEDûlRSTû
facility, according to S&P. and acquisition activity and repay its priority lien on substantially all tangible and
“Incorporating our performance revolver. intangible assets and capital stock of the
EXPECTATIONSûANDûTHEûDEBT
FUNDEDûDIVIDENDû The loan, which matures in February borrower and guarantors.
we anticipate ATW’s S&P-adjusted debt to ûlRMEDûATûBPûOVERû3/&2ûWITHûAûû #ORPORATEûRATINGSûAREû"A""nûANDûFACILITYû
Ebitda will be about 5 times as of the end of mOORûANDûANû/)$ûOFûû4HEREûISûNOûCREDITû RATINGSûAREû"A""n
ûWHICHûISûABOUTûXûHIGHERûTHANûOURû spread adjustment. EMBECTA, the diabetic care business of
PREVIOUSûEXPECTATIONvûTHEû30ûANALYSTSû
wrote in the report.
The company’s private equity sponsor is
"AINû#APITAL
Corporate and tranche ratings from S&P
YEARûLOANûlNALISEDûATû
AREû""
BAUSCH MAKES CHANGES TO REFI
Pharmaceutical company BAUSCH HEALTH has
increased pricing and made other changes
TOûAû53BNûTERMûLOANû"ûLEDûBYûBarclays.
Pricing is 525bp over SOFR plus a credit
It comes with 101 soft call protection for
SIXûMONTHS
Barclays was lead-left bookrunner.
JP Morgan, Bank of America, Morgan Stanley,
BMO, Goldman Sachs, RBC, Deutsche Bank,
Mizuho, Credit Suisse, Macquarie and ING were
joint bookrunners.
"ANKûOFû!MERICAûISûALSOûADMINISTRATIVEû
agent.
#ORPORATEûRATINGSûAREû""ûANDûSECUREDû
RATINGSûAREû""
CROCS SEALS US$2bn LOAN
MEDICALûTECHNOLOGYûCOMPANYû"ECTONû
Dickinson and Company, tightened the
spread on a US$1.15bn senior secured term
loan that will fund its spin-off.
0RICINGûONûTHEûSEVEN
BPûOVERû3/&2ûFROMûGUIDANCEûOFûBPn
BPû)TûCOMESûWITHûAûûmOOR
The OID was set at 99.5, on the tight end
OFûnûGUIDANCE
4HEûLOANûHASûûSOFTûCALLûPROTECTIONûFORûSIXû
MONTHSûANDûWILLûAMORTISEûATûûPERûANNUM
Morgan Stanley is the lead-left arranger and
administrative agent.
SPREADûADJUSTMENTûUPûFROMûBPnBPû JP Morgan, Citigroup, Wells Fargo, MUFG, US
WITHûAûûmOORûANDûANû/)$ûOFû Footwear retailer CROCS has priced a US$2bn Bank and BNP Paribas were joint lead
The CSA is 10bp for a one-month contract, SENIORûSECUREDûlRST
LIENûTERMûLOANû"ûTHATû arrangers. Citizens Bank, Santander and PNC
15bp for a three-month contract and 25bp along with a US$152m draw from a Bank were co-managers.
FORûAûSIX
MONTHûCONTRACT REVOLVINGûCREDITûFACILITYûANDû53MûINû Proceeds will also fund a cash distribution
4HEûMATURITYûWASûSHORTENEDûTOûlVEûYEARSû equity, will fund the acquisition of peer TOû"$ûANDûPAYûFEESûANDûEXPENSESûRELATEDûTOû
from seven years at launch. HEYDUDE. the spin-off.
It comes with 101 soft call protection for 4HEûSEVEN
YEARûTERMûLOANûlRMEDûPRICINGûATû Embecta will become a publicly traded
SIXûMONTHSû4HEûAMORTISATIONûSCHEDULEûWASû 350bp over SOFR plus a credit spread company upon the completion of the spin-off,
REVISEDûTOûûPERûYEARûUPûFROMûûPERûYEAR ADJUSTMENTûWITHûAûûmOORûANDûANû/)$ûOFû WHICHûISûEXPECTEDûTOûCLOSEûINûTHEûSECONDûQUARTER

66 International Financing Review January 29 2022


Its proposed capital structure at the
transaction’s closing will comprise the
term loan, a US$500m revolving credit
facility and US$500m in senior secured
notes, according to S&P.
#ORPORATEûANDûFACILITYûRATINGSûAREû"A"
ATHENAHEALTH UPS LBO LOAN
in secured notes and a US$500m revolving
credit facility that will be undrawn at the
close of the transaction, according to a
report from Moody’s.
Moody’s analysts also warned that the
company’s ratings could be downgraded
“if liquidity becomes weak, if revenue and
Ebitda declines accelerate, or if leverage is
LEVERAGED LOANS
#ORPORATEûRATINGSûAREû"A""""û4,"û
RATINGSûAREû"A"""""n
Bank of America was lead-left arranger.
The loan’s other arrangers are Wells Fargo,
Scotiabank, Mizuho, Truist, MUFG, BNP Paribas
and BMO.
4HEû4,"ûWASûINCREASEDûINûSIZEûBYû
US$900m. The additional proceeds of the
sustained above 8 times”. 4,"ûINûCONJUNCTIONûWITHûTHEûINCREMENTALû
Healthcare technology company 4HEûRATINGSûlRMûSAIDûITûEXPECTSûADJUSTEDû term loan A, will be used for general
ATHENAHEALTH has wrapped a seven-year debt to Ebitda to start around 7 times corporate purposes, potentially including
US$5.9bn term loan, increased from when Intelsat emerges from bankruptcy. incremental liquidity, share repurchases
US$5.75bn at launch, and a seven-year #ORPORATEûRATINGSûAREû"""ûWHILEû and other corporate activities.
US$1bn delayed-draw term loan. lRSTûLIENûRATINGSûAREû""""n In addition to the new term loans A and
Proceeds will fund the company’s Restaurant franchisor INSPIRE BRANDS has "ûTHEûCOMBINEDûCOMPANYSûPROûFORMAû
buyout by an investor group led by private REPRICEDûAû53BNûlRST
LIENûTERMûLOANû CAPITALISATIONûWILLûINCLUDEûAû53BNûlVE

EQUITYûSPONSORSû"AINû#APITALûANDû(ELLMANû "ûVIAûLEAD
LEFTûBarclays. year term loan A, a US$750m cash bridge
û&RIEDMANûRElNANCEûDEBTûFUNDûWORKINGû The loan, which matures on December ANDûANûUNDRAWNû53BNûlVE
YEARû
capital and be used for general corporate ûûlRMEDûATûBPûOVERû3/&2ûPLUSûAû revolver.
purposes. credit spread adjustment, at par, with a The company raised the US$3.5bn TLA
The margin was tightened to 350bp over ûmOOR INûûTOûlNANCEûTHEû!VASTûACQUISITIONû
3/&2ûFROMûGUIDANCEûOFûBP
BPû)Tû The CSA is offered at 10bp for one- replacing a US$1.732bn loan.
COMESûWITHûAûûmOORûAûû/)$ûANDûû
SOFTûCALLûPROTECTIONûFORûSIXûMONTHS
There is now just one leverage-based
pricing step-down, amended from two at
launch..
A credit spread adjustment was not
month SOFR, 15bp for three-month SOFR
and 25bp for 6-month SOFR.
The company issued the US$2.575bn
LOANûATûBPûOVERû,IBORûWITHûAûûmOORûINû
December 2020.
#ORPORATEûANDûFACILITYûRATINGSûAREû""
4HEûCOMBINEDûCOMPANYûWILLûHAVEûAûû
times leverage ratio based on its pro forma
total debt and adjusted Ebitda for the past
twelve months.
NortonLifeLock announced in August
2021 that it had agreed to acquire Avast for
INCLUDEDûINûTHEûLOANSûlNALûTERMSûDESPITEûAû
push from some lenders to include it, a
banking source said.
Ticking fees on the DDL now kick off at
LIENûTERMûLOANûTOû
US$6.1bn in cash and US$2.5bn in new
NORTONLIFELOCK BAGS TLB NortonLifeLock shares.
Gaming equipment provider PLAYAGS is
Cybersecurity company NORTONLIFELOCK has SEEKINGûAû53MûlRST
ûOFûTHEûMARGINûONûDAYûûTHENûûOFû RAISEDûAû53BNûTERMûLOANû"ûSUPPORTINGû RElNANCEûDEBT
the margin on day 91, the third banking its acquisition of rival Avast. 4HEûSEVEN
YEARûLOANûISûGUIDEDûATûBPû
source said. 0RICINGûONûTHEûSEVEN
YEARûLOANûlNALISEDû over SOFR plus a credit spread adjustment,
JP Morgan was lead-left arranger and at 200bp over SOFR plus a credit spread WITHûAûûmOORûANDûAûû/)$
administrative agent. Other arrangers are
Goldman Sachs, Bank of America, BMO,
Barclays, Deutsche Bank, Morgan Stanley, KKR,
Credit Suisse, RBC, HSBC, Truist, Jefferies,
MONTHûCONTRACT
Macquarie, Mizuho, Nomura, Wells Fargo, BNP
MONTHûCONTRACT It comes with 101 soft call protection for
Paribas, MUFG, US Bancorp, SMBC, KeyBanc,
Fifth Third, Citizens, Intesa Sanpaolo,
Santander, TD, Scotia, Stifel and Credit
Agricole.
ADJUSTMENTûFROMûGUIDANCEûOFûBPn
BPû)TûHASûAûûmOORûANDûAûû/)$
The CSA is 10bp for a one-month
contract, 15bp for a three-month contract
ANDûBPûFORûAûSIX
)TûCARRIESûûSOFTûCALLûPROTECTIONûFORûSIXû
MONTHSûANDûWILLûAMORTISEûATûûPERû
annum.
4HEûCOMPANYûALSOûAGREEDûAû53Mû
The CSA is offered at 10bp under a one-
month contract, 15bp under a
three-month contract and 25bp under a
SIX
SIXûMONTHSû)TûWILLûAMORTISEûATûûPERû
annum, paid quarterly, with the remainder
due at maturity.
It comes with mandatory pre-payments,
Satellite services company INTELSAT has term loan A that will back the acquisition. INCLUDINGûûOFûEXCESSûCASHmOWûSUBJECTû
priced a US$3.19bn senior secured term 0RICINGûONûTHEûlVE
YEARûINCREMENTALû4,!ûISû TOûLEVERAGE
BASEDûSTEP
DOWNSûTOûûANDû
LOANû"ûTHATûWILLûFUNDûTHEûCOMPANYSûEXITû linked to ratings and the total leverage û/THERûMANDATORYûPRE
PAYMENTSû
from Chapter 11 bankruptcy protection. ratio. INCLUDEûûOFûCERTAINûASSETûSALEûPROCEEDSû
4HEûSEVEN
YEARûLOANûlRMEDûATûBPû &ORû"AA"""ûANDûAûRATIOûOFûûTIMESûITû subject to leverage-based step-downs to
over SOFR plus a credit spread adjustment, ISûBPûOVERû3/&2ûPLUSûAû#3!ûFORû"AA ûANDûûANDûREINVESTMENTûRIGHTSûASû
FROMûGUIDANCEûOFûBPnBPû4HEû#3!ûISû """nûANDûûTIMESûITûISûBPûFORû"A WELLûASûûOFûDEBTûISSUANCEûPROCEEDSû
offered at 10bp for one-month SOFR, 15bp ""ûANDûûTIMESûITûISûBPûFORû"A""û other than permitted debt.
FORûTHREE
MONTHû3/&2ûANDûBPûFORûSIX
ANDûûTIMESûITûISûBPûFORû"A""nûORû Arrangers are Jefferies, Barclays, Credit
month SOFR. LOWERûANDûMOREûTHANûûTIMESûITûISû Suisse, Macquarie and Apollo Global
)TûCOMESûWITHûAûûmOORûANû/)$ûOFûû
ANDûûSOFTûCALLûPROTECTIONûFORûSIXûMONTHS
Barclays was the lead-left bookrunner
and the administrative agent. Credit Suisse,
Deutsche Bank, Goldman Sachs and JP Morgan
were joint bookrunners.
)NTELSATûISûEXPECTEDûTOûEXITûBANKRUPTCYûINû
175bp.
4HEû4,!ûHASûAûû3/&2ûmOORû)TûWILLû
AMORTISEûATûûONûTHEûORIGINALûPRINCIPALû
amount per annum.
The loan pays a new money upfront fee
of 25bp on new commitments.
Covenants on the TLA include a
Management.
#ORPORATEûRATINGSûAREû""
MJH TAKES US$650m TLB
Healthcare technology company MJH LIFE
SCIENCESûSEALEDûAû53MûTERMûLOANû"ûTHATû
THEûlRSTûQUARTERûWITHû53BNûOFûDEBTû MAXIMUMûTOTALûLEVERAGEûRATIOûOFûûTIMESû will back the acquisition of a majority
WHICHûISûABOUTûûOFûITSûPRE
EMERGENCEû stepping down to 5.75 times and 5.25 STAKEûINûTHEûCOMPANYûBYûINVESTMENTûlRMû
debt. The company is also raising US$3bn TIMESûAFTERûûANDûûMONTHSûRESPECTIVELY "$4û#APITALû0ARTNERS

International Financing Review January 29 2022 67

 EQUITIES EMEA

103.34p. Shares drifted down during The deal was oversubscribed with the be 5pm on January 31. The NAV per share on
BOOKBUILDINGûANDûCLOSEDûmATûTOûPRICINGûONû trade coming at a small discount to the January 24 was 168.19p, which translates to
Monday. market level. 170.71p at a 1.5% premium.
The fund launched the placing on January A total of 188.7m shares were placed at There is shareholder authority to issue
13 with news of a conditional agreement to
acquire a majority stake in Tetra Ireland
Communications, and three days after
announcing a US$93m investment in Nordic
data centre platform Verne Global over the
next 12 months.
The fund has an immediate pipeline of
about £325m and a near-term pipeline of
approximately £500m. Its total pipeline is
about £1.8bn.
Shares ended at 107.8p on Wednesday,
unchanged from Tuesday.
TCV EXITS IG GROUP
Technology Crossover Ventures sold its
entire stake in online trading provider IG
GROUP on Thursday evening, cashing in
£121m.
Barclays and Jefferies were joint
bookrunners on the trade that comprised
lXEDûPRICINGûOFûPûREPRESENTINGûAûû
discount to the January 4 close of 113.5p and
a 4.3% premium to the latest unaudited cum-
dividend NAV of 101.6p per share.
Shares dropped to a close of 107.5p when
the deal launched and closed at that level or
108p until this week. On Monday shares
closed at 106.5p. Books closed at 12pm in
London on Tuesday.
The shares equate to a capital increase of
about one-third.
Cordiant is buying Emitel for an equity
value of £352m in cash.
3HARESûCLOSEDûmATûTOûPRICINGûONû4UESDAY
JLEN COMPLETES £60.7m FUNDRAISE
UK infrastructure fund JLEN ENVIRONMENTAL
ASSETS GROUP has completed a £60.7m
fundraising, with proceeds repaying a
revolving credit facility and funding its
another 3.695m shares so the deal is going
ahead with the expectation of shareholders
approving an up to 10% capital increase at
an EGM on February 1 that would raise
around £50m.
A result for the placing is due on February 1.
The placing is being managed by Stifel
Nicolaus Europe.
OXFORD BIOMEDICA TARGETS £80m
UK gene therapy business OXFORD BIOMEDICA is
targeting £80m to fund an acquisition from
Nasdaq-listed Homology Medicines.
The acquisition of an 80% stake in a new
manufacturing and innovation business in
the US is at an implied US$175m enterprise
value. The acquisition is expected to
complete this quarter and Oxford Biomedica
has also secured an US$85m short-term loan
facility.
3.6% of the company.
TCV’s stake was born of IG Group’s US$1bn
combination with US options and futures
trading company tastytrade, which completed
in mid-2021. TCV’s six-month lock-up from
that transaction expired in December.
A total of 15.5m shares were sold at 780p,
a 7.8% discount to Thursday’s 845.5p close.
A wall-crossing exercise led to indications
of interest in excess of the deal size.
pipeline.
An offering of 60.1m new shares at 101p
was oversubscribed, with demand for the
retail offer materially exceeding the
€8m-equivalent cap.
The company is £109.8m drawn on its
revolving credit facility. It has a £50m
pipeline of anaerobic digestion
OPPORTUNITIESûALREADYûIDENTIlEDûANDû
potential deals totalling £40m in low carbon
!ûlRMûPLACINGûCOMPRISINGûMûSHARESû
representing 5.6% of share capital, launched
on Friday morning, with pricing yet to be
disclosed by the market close when shares
ended the day at 808p. The sale would raise
£39.2m at that price without a discount.
!ûlRMûPLACINGûWASûAUTHORISEDûATûLASTû
year’s AGM. There is also an offer for
subscription that will require shareholder
approval at an EGM expected in mid-
The ABB launched with reference to the
close, and guidance of 775p–780p arrived
just before 7pm.
Shares fell on Friday morning but
remained above water, and were down
about 6% at 795p by 3:30pm in London.
The book was multiple times subscribed,
with support from existing shareholders
and long-only accounts.
The top 10 orders took around two-thirds
of the deal, and the top 20 took about 80%.
The book was around 50 lines.
The market backdrop was helpful, a
banker involved said, with the business
GENERALLYûBENElTINGûFROMûINCREASEDû
volatility and the ensuing higher
COMMISSIONSûANDûMOREûPROlTABLEûSPREADSû
Shares were up 4% for the year at Thursday’s
close.
ANDûENERGYûEFlCIENCYûANDûaMûINû%6û
charging infrastructure.
JLEN shares closed on Thursday at 102p
and its shares were comfortably above
pricing by 4pm on Friday, up 2.3% on the day
at 104.4p.
7INTERmOODû3ECURITIES managed the
fundraising.
POLAR CAPITAL ASKS FOR MORE
POLAR CAPITAL GLOBAL FINANCIALS TRUST is
considering raising more equity after a
strong performance in its investments last
year as economies reopened and payout
restrictions on banks were lifted.
4HEûFUNDûSAIDûTHEûlNANCIALûSECTORûSAWûAû
SIGNIlCANTûRECOVERYûINûSENTIMENTûANDûSTOCKû
prices in 2021 and it believes “the sensitivity
of the banking sector to increasing interest
February, with the fundraising completing
in early March.
Oxford Biomedica CEO John Dawson is
stepping down, and chairman Roch
Doliveux will become interim CEO while
the process to appoint a new chief exec is
under way.
Peel Hunt and WG Partners are joint
bookrunners, with Evercore advising.
IMPACT HEALTHCARE REIT
SHOOTS FOR £50m
IMPACT HEALTHCARE REIT is targeting £50m in a
follow-on through Jefferies and 7INTERmOOD.
Fixed pricing of 114p is a 2.7% discount to
Wednesday’s 117.2p close, and a 2%
premium to estimated NAV of 111.81p as of
November 30.
The fundraising is structured as an open
CORDIANT RAISES £200m
FOR POLISH ACQUISITION
CORDIANT DIGITAL INFRASTRUCTURE has raised
£200m in a placing, with the proceeds to
fund its acquisition of Polish broadcast
tower company Emitel.
Jefferies and Investec were joint
bookrunners on the bookbuild that ran for
just under three weeks.
RATESûRISINGûINmATIONûEXPECTATIONSûANDû
STRONGERûECONOMICûGROWTHûWILLûBENElTûTHEû
portfolio”.
It also said that certain investors are
waiting for an opportunity to invest.
Polar Capital said that it has raised
£272.5m since November 30 2020.
Pricing will be set at a 1.5% premium to
the unaudited NAV per share on the closing
date of the transaction, which is expected to
International Financing Review January 29 2022
offer, initial placing, offer for subscription
and intermediaries offer. The open offer is
running on a 1-for-8 basis.
Impact Healthcare REIT will initially use
the cash to pay down its £67.5m drawn
revolving credit facility.
Its investment manager also has £69m of
acquisitions in advanced discussions, and a
mid to long-term investment pipeline
exceeding £290m.
77
ECM DEALS: WEEK ENDING 28/1/2022
Stock Country Date Amount Price Deal type Bookrunner(s)
Cordiant Digital Infrastructure UK 25/01/2022 £200m 106p Accelerated Bookbuild (Primary) Investec, Jefferies
Digital 9 Infrastructure UK 25/01/2022 £95.2m 108p Follow-on (Primary) JP Morgan
Swedencare Sweden 26/01/2022 SKr3.6bn SKr100 Accelerated Bookbuild (Primary) Pareto, SEB
JLEN Environmental Assets UK 27/01/2022 £60.74m 101p Follow-on (Primary) Winterflood Securities
Times China China 27/01/2022 HK$400m HK$3.40 Follow-on (Primary) UBS
Telix Pharmaceuticals Australia 24/01/2022 A$175m A$7.70 Follow-on (Primary) Jefferies, Taylor Collison, Wilsons
AGS Transact India 21/01/2022 Rs6.8bn Rs175 IPO (Secondary) HDFC Bank, ICICI Securities, JM
Citicore Energy REIT Philippines 26/01/2022 Ps5.56bn Ps2.55 IPO (Primary, Secondary) BDO Capital, Unicapital, CIMB, CLSA
Zymeworks Canada 26/01/2022 US$100m US$8 Accelerated bookbuild (Primary) Jefferies, Evercore, Stifel, Wells Fargo
Credo Technology Cayman Is 26/01/2022 US$200m US$10 IPO (Primary, Secondary) GS, BofA, Cowen, Mizuho, Needham, Stifel
Keyarch Acquisition Cayman Is 24/01/2022 US$100m US$10 SPAC IPO (Primary) EarlyBird Capital, Haitong Securities
Epizyme US 26/01/2022 US$85m US$1.50 Accelerated bookbuild (Primary) Jefferies, Barclays
LatAm Growth SPAC US 24/01/2022 US$130m US$10 SPAC IPO (Primary) BofA, BTG Pactual
Sierra Oncology US 26/01/2022 US$135m US$27 Follow-on (Primary) Jefferies, Cantor

The fund predominantly invests in care Though there is a long queue of
homes. COMPANIESûTHATûlLEDûFORû)0/SûLASTûYEARûANDûINû
It last tapped investors in April, raising early January, few if any are expected to
£35m after initially targeting around £50m. begin marketing near-term as investors
In December, the fund said it had agreed a absorb the recent correction in tech stocks
£51.8m investment in 15 care homes triggered in large part by the Federal
comprising 688 beds. Reserve’s sharp hawkish turn in early
Shares in the fund fell 1.4% on Thursday December.
to 115.2p each. “The VIX needs to come down and
Books close on February 16 with a result stabilise and we need to see some of the
due the next day. recent IPOs trading better,” one senior ECM
banker said.
As of Thursday’s close, the 2021 IPO class
was showing an average loss of 30%, though
investors saw some alpha after the past
AMERICAS week’s only IPO, chip-maker CREDO
Joint bookrunners Stifel and Piper Sandler
still hope to price the offering of 8.9m Silver
Spike shares at US$14 in the coming week,
though a delay of this length is typically a
poor omen.
Early on Wednesday the syndicate told
investors they had anchor orders but these
INVESTORSûlRSTûWANTEDûTHEûDUSTûTOûSETTLEûINû
the wake of Wednesday’s FOMC meeting
outcome.
Though the FOMC statement is often a
market-moving event, not that often is it
explicitly cited as determining whether an
IPO prices or not.
Silver Spike’s offering was only two-thirds
covered as of early on Tuesday, even with
TECHNOLOGYûPRODUCEDûAûlRST
DAYûGAINûOFû the external manager taking US$50m–$60m
16.5%.
UNITED STATES Another banker said that if no IPOs
launched by this coming Wednesday,
SLOW FEBRUARY AWAITS US ECM February would almost be a write-off for
NEWûISSUESûSINCEûlNANCIALûSTALENESSûASûOFû
US ECM bankers expect the vast majority of Valentine’s Day (companies cannot rely on
issuers to hold back from launching IPOs OLDûlNANCIALûSTATEMENTS ûTYPICALLYûLIMITSû)0/û
near-term amid tough capital-raising activity anyway.
of the shares in the offering.
A “clubby” placement of shares is
expected if the deal goes ahead, according to
bankers.
The BDC plans to use proceeds from the
IPO to seed new loans in the cannabis
industry. With no portfolio currently, it
expects it will take three to nine months to
conditions, though the progression of the 4HEûMOSTûRECENTûBATCHûOFû)0/ûlLERSû deploy the capital.
current earnings season may open some INCLUDINGûCAR
SHARINGûlRMû4UROûEYEû
opportunities to price secondaries and help HEALTHCAREûlRMû"AUSCHûû,OMBû-ATTRESSû SIERRA ONCOLOGY RAISES US$135m
lLLûTHEûVOIDûINûTHEûCOMINGûMONTH &IRMûADVERTISINGûSOFTWAREûlRMû"ASISû'LOBALû FROM UPSIZED STOCK SALE
4ECHNOLOGIESûRENEWABLEûPOWERûlRMSû$ESRIû
US EQUITIES and REV Renewables, and biotech Arcellx SIERRA ONCOLOGY capped a week of heavy news
BOOKRUNNERS: 1/1/2022 TO DATE can all theoretically launch their IPOs on mOWûWITHûANûUPSIZEDû53MûFOLLOW
ONû
Managing No of Total Share Monday. stock sale priced on Wednesday night.
bank or group issues US$(m) (%) The coming week also marks one of Jefferies and Cantor priced the sale of 5m
1 Bank of America 10 1,423.36 17.8
busiest weeks of the earnings season as shares in the late-stage cancer drug
2 Morgan Stanley 9 1,392.74 17.4
another 100-plus S&P 500 companies are developer at US$27.00, a 5.7% discount to
3 Goldman Sachs 7 1,175.05 14.7
scheduled to report, including results from last sale, after marketing the offering for
4 JP Morgan 6 1,082.43 13.5 mega-cap tech companies Alphabet/Google, ONEûDAYûWITHûAûlXEDû53MûTARGET
5 Citigroup 4 658.41 8.2 Amazon and Meta Platforms/Facebook. This offering represented 25% of the
6 RBC 4 515.66 6.4 enlarged company, excluding warrants.
7 Jefferies 5 374.59 4.7 SILVER SPIKE FAILS TO PRICE Sierra shares slumped 12.7% to US$24.99 at
8 Evercore Partners 4 236.53 3.0 CANNABIS BDC IPO Thursday’s close.
9 Credit Suisse 1 173.33 2.2 The biotech sold roughly 4.1m common
10 Barclays 2 172.18 2.2 Cannabis BDC SILVER SPIKE INVESTMENT became shares and another 900,000 in the form of
Total 24 7,998.89 another casualty of the early 2022 market pre-funded warrants, strongly hinting that
Including all domestic and international deals and rights issues sell-off by failing to price its US$125m at least one large existing shareholder
Source: Refinitiv SDC code: C3r Nasdaq IPO as planned late on Tuesday. participated in the offering.

78 International Financing Review January 29 2022

 EQUITIES AMERICAS

Pre-funded warrants are commonly used

to cap individual share ownership below
9.99%, above which an individual
shareholder is deemed an insider,
LatAmGrowth SPAC funds
requiring disclosure on buying and selling.
Rock Springs Capital, OrbiMed Advisors as others withdraw
and Adage Capital Management each
owned sizeable stakes just below that „ US SPAC IPO backlog diminishes amid withdrawal wave
threshold. Vivo Capital and Longitude
Capital, Sierra’s largest shareholders, Six special purpose acquisition companies Arguably, Latin America is the one region
owned 12.7% and 10% stakes ahead of the withdrew their IPOs last week and only two were that is under-SPAC’d. There are at least five
OFFERINGûACCORDINGûTOû2ElNITIVûDATA
Sierra was marketing the offering in the
halo of Tuesday’s Phase III trial results for its
bone marrow cancer drug. The biotech
PLANSûTOûlLEûAûNEWûDRUGûAPPLICATIONûINû1ûINû
hopes of launching commercially in 2023.
Shares soared 46.5% on Tuesday and
another 26.3% to US$28.64 ahead of
pricing.
In addition to the trial results, Sierra
announced it had secured up to US$125m
of funding from a new term loan.
Provisions of the loan allowed it to draw
US$5m at signing, another US$15m after
completing last week’s stock sale, and
US$55m if the FDA approves its cancer
drug – the other US$50m is conditional
upon lender approval.
With the proceeds of the offering, Sierra
now has roughly US$240m of cash, versus
a US$430m market cap.
EPIZYME GRABS EQUITY LIFELINE
Cancer-focused EPIZYME raised US$85m on
Wednesday from an overnight stock sale
that addressed an immediate need for cash
but triggered a free-fall in the stock price.
Jefferies and Barclays placed 56.7m shares
at US$1.50, a 21% discount to the US$1.90
last sale.
The stock slumped 44% to US$1.06 on
Thursday, leaving the biotech sporting a
US$172m market cap that is less than the
US$221.3m of cash it had on the balance
sheet as of September 30.
Earlier this month, the biotech warned
its current funding would run out by the
end of 2022 given it expects to spend
US$170m–$190m this year. The proceeds
from last week’s stock sale give Epizyme
some extra runway.
Epizyme has disappointed with its only
approved drug and is haemorrhaging cash
on clinical trials for that same drug in
other indications.
The biotech has completed enrolment in
a Phase Ib trial on its Tazverik drug,
priced, highlighting both the difficulty of raising
new capital and inevitable attrition to a still
sizeable backlog of SPAC IPOs in registration.
“It is amazing that new deals continue to
get done given that de-SPACs are struggling,”
summed up one head of US equity syndicate. “To
move forward with an IPO, there has to be a high
level of confidence by management that they can
find something new and differentiated.”
LATAMGROWTH SPAC, a new SPAC headed by
former UBS LatAm investment banking boss Gerard
Cremoux, managed to raise the full US$130m it
was seeking on its IPOs, but only by incentivising
investors through an over-funded trust.
Bank of America and BTG Pactual were joint
bookrunners on the sale late on Monday of 13m
units US$10.00, typically structured as one share
and one-half warrant exercisable at US$11.50 per
full warrant post-merger. Notably this is BTG’s
first ever US-listed bookrun SPAC IPO mandate.
DigitalBridge, a publicly-traded infrastructure
investor and the SPAC’s sponsor, funded the
trust at US$10.20 per unit sold, providing IPO
investors with a guaranteed return in 18 months,
when the SPAC matures, or by redeeming should
they choose not to participate in a merger.
LatAmGrowth, the new SPAC, closed its
Nasdaq debut on Tuesday at US$10.00, after
trading as low as US$9.93 early in the session,
on heavy volume of nearly 10m units.
Of the 22 SPAC IPOs priced so far in 2022, 14
have closed their opening session at or above
their offering price. All but two IPOs had over-
funded trusts, according to IFR data.
In the case of LatAmGrowth, DigitalBridge is
the one footing the bill as sponsor through its
SouthLight Capital venture arm.
CANADA
ZYMEWORKS RAISES US$100m
FROM DILUTIVE STOCK SALE
Compounding what has already been a
DIFlCULTûYEARûFORûZYMEWORKS, the cancer drug
developer braved less than ideal markets
SPACs targeting the region on file, led by
vehicles sponsored by Patria Investments and L
Catterton.
The new SPAC is an extension of the LatAm-
focused strategy DigitalBridge began in 2019
by buying Abu Dhabi private equity firm Abraaj
Investment Management’s Latin America
platform. DigitalBridge changed its name last
year from Colony Capital.
LatAmGrowth will focus its search on high
growth companies in Latin America, including
Brazil, as well as US targets focused on the
Hispanic community. It will have 18 months to
complete the search, subject to two three-month
extensions up to 24 months.
In the week’s only other SPAC IPO pricing,
Asia-focused KEYARCH ACQUISITION late on
Monday raised US$100m in a deal joint-bookrun
by EarlyBird Capital and Haitong Securities.
Keyarch is structured with the same one-half
warrant gearing and 18-month tenor, but also
includes a right to one-tenth of a share post-
merger, allowing for a lower US$10.10 per unit of
trust funding.
Keyarch closed its Nasdaq debut Tuesday at
US$9.95.
Six other SPACs last week withdrew IPO filings
that had outlined US$1bn of funding combined.
The Chernin Group’s TCG GROWTH OPPORTUNITIES,
which mandated Goldman Sachs and Credit
Suisse to lead its IPO in February last year, was
the largest at US$250m.
With only two new IPOs filed, attrition of
the past week has cut the backlog of SPACs in
registration to go public to 242, according to IFR
data.
Stephen Lacey
the US$9.32 last sale Wednesday. The stock
price had already slumped 43% this year.
Zymeworks’ shares closed Thursday’s
session at US$8.30.
“There was a good mix of new and existing
investors,” a banker said of the level of demand
for the offering. “But anything you bring in this
market is going to come at a price.”
4HEûBANKSûCONlDENTIALLYûMARKETEDûTHEû
already approved for lymphoma, for solid
tumours. A Phase III is in the works in
combination with another cancer drug for
lymphoma.
It is conducting a Phase I/II trial of the
same drug in Europe for prostate cancer.
last week to raise US$100m from a highly
dilutive overnight follow-on stock sale.
Jefferies, Evercore, Stifel and Wells Fargo early
on Thursday placed 12.5m shares at US$8.00,
the bottom of the US$8.00–$8.50 range
marketed overnight and a 14% discount to
International Financing Review January 29 2022
lNANCINGûTOûSELECTûINVESTORSûALLOWINGûTHEMû
to launch the offering oversubscribed.
The new stock sold equates to a hefty 20%
stake. A portion of the offering was in the form
of pre-funded warrants, enabling big investors
TOûKEEPûTHEIRûBENElCIALûOWNERSHIPûBELOWû
79