fees of 0.25% of gross assets, a 15% incentive
fee of FFO above a 48-cent threshold, and
fees on acquisitions.
Summit Industrial currently pays a 54-
cent annual dividend.
Combined management fees last year
totalled C$13.7m, eating into the C$43.6m
of funds from operations it generated in
2018.
Eliminating the fee will reduce the REIT’s
cost of funding by about 75bp, management
estimated at the time of the shareholder
approval in April.
“Institutions do prefer internally
managed vehicles,” said the banker. “But
it did not really have an impact on this
deal.”
STRUCTURED EQUITY
JAPAN
YAOKO PRICES CB AT LOW ENDFood retail and distribution company YAOKO
has priced a ¥15bn (US$139m) zero-coupon
convertible bond issue at the bottom of the
indicative conversion premium.
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a conversion premium of 17%–27% and
priced at 17.01%, translating into an initial
conversion price of ¥6,073.The issue price is at 100.5 and the offer
price is at 103.
The offering was oversubscribed with
good long-only and hedge fund demand,
according to a person close to the deal.
Allocations were heavily skewed towards
long-only investors.
The CBs traded at 100.65 in the secondary
market last Wednesday.
Shares of Yaoko closed down 6.9% last
Wednesday at ¥4,830. The stock has fallen
19.5% so far this year.
The company plans to use ¥12bn to fund
new store openings and renovations, ¥2bn
on operational improvements and the rest
to invest in delicatessen and fresh food
centres.
SMBC Nikko was the sole bookrunner and
lead manager.UK
DERWENT LONDON REPLACES EXISTING
PAPER WITH €175m CBProperty developer DERWENT LONDON returned
to the market after six years on Wednesday
with €175m convertible bonds, slightly
larger than the €150m 1.125% CBs that
proceeds will be used to repurchase, just
weeks ahead of their July 24 maturity.
With the same tenor of six years, to June
12 2025, the bonds were issued at 100% of
par and will be redeemed at the same, withGLOBAL CONVERTIBLE OFFERINGS
BOOKRUNNERS: 1/1/2019 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Goldman Sachs 13 4,360.35 8.2
2 BAML 21 4,294.33 8.1
3 CITIC 10 4,226.26 7.9
4 JP Morgan 18 3,305.91 6.2
5 Citigroup 14 2,808.31 5.3
6 Bank of China 4 2,442.73 4.6
7 China Securities 7 2,433.63 4.6
8 China International 3 2,220.11 4.2
9 Credit Suisse 11 2,200.92 4.1
10 Morgan Stanley 12 2,198.97 4.1
Total 149 53,188.90
Including exchangeables and domestic offerings.
Source: Refinitiv SDC code: C9GLOBAL CONVERTIBLE OFFERINGS – EMEA
BOOKRUNNERS: 1/1/2019 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 JP Morgan 5 1,159.66 16.1
2 BNP Paribas 4 867.02 12.0
3 UBS 2 708.76 9.8
4 Citigroup 1 651.96 9.1
5 Morgan Stanley 3 644.34 8.9
6 HSBC 2 641.18 8.9
7 BAML 2 555.35 7.7
8 Credit Suisse 1 374.36 5.2
9 SG 3 339.48 4.7
10 Natixis 2 282.68 3.9
Total 16 7,202.11
Including exchangeables.Source: Refinitiv SDC code: C09dALL INTERNATIONAL ASIAN CONVERTIBLES
(EXCLUDING JAPAN)
BOOKRUNNERS: 1/1/2019 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 JP Morgan 5 1,015.69 19.3
2 Credit Suisse 6 855.73 16.2
3 BAML 4 714.16 13.5
4 Goldman Sachs 2 493.75 9.4
5 Morgan Stanley 4 442.51 8.4
6 Citigroup 4 395.90 7.5
7 HSBC 2 304.79 5.8
8 BNP Paribas 3 274.37 5.2
9 Deutsche Bank 2 231.25 4.4
10 UBS 2 140.84 2.7
Total 15 5,274.42
Including exchangeables.
Source: Refinitiv SDC code: M11ALL INTERNATIONAL ASIAN CONVERTIBLES
BOOKRUNNERS: 1/1/2019 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 JP Morgan 5 1,015.69 18.1
2 Credit Suisse 6 855.73 15.2
3 BAML 4 714.16 12.7
4 Goldman Sachs 2 493.75 8.8
5 Morgan Stanley 4 442.51 7.9
6 Citigroup 4 395.90 7.0
7 HSBC 2 304.79 5.4
8 BNP Paribas 3 274.37 4.9
9 Sumitomo Mitsui Finl 2 237.20 4.2
10 Deutsche Bank 2 231.25 4.1
Total 18 5,622.66
Including exchangeables.Source: Refinitiv SDC code: M10GLOBAL CONVERTIBLE OFFERINGS – US
BOOKRUNNERS: 1/1/2019 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 BAML 14 2,996.08 22.3
2 Goldman Sachs 8 1,635.28 12.1
3 JP Morgan 8 1,130.55 8.4
4 Barclays 8 1,112.81 8.3
5 Morgan Stanley 4 1,083.37 8.0
6 Citigroup 8 1,016.58 7.6
7 Credit Suisse 4 970.83 7.2
8 HSBC 2 592.19 4.4
9 Wells Fargo 4 419.75 3.1
10 Jefferies 5 408.42 3.0
Total 32 13,463.16Source: Refinitiv SDC code: C9aEQUITY-LINKED DEALS WEEK ENDING: 7/6/2019
Issuer Country Date Amount Greenshoe Tenor Coupon (%) Premium (%) Bookrunner(s)
Yaoko Japan 05/06/2019 ¥15bn None 5y zero 17.01 SMBC Nikko
Derwent London UK 05/05/2019 £175m None 6y 1.50 37.5 Barclays, HSBC, JP Morgan, UBS
Altair Engineering US 05/06/2019 US$200m US$30m 5y 0.25 30.0 JP Morgan, Goldman Sachs, RBC CM
Coupa Software US 06/06/2019 US$700m US$105m 7y 0.13 35.0 Morgan Stanley, Goldman Sachs, Barclays
Mullen Group US 04/06/2019 C$110m C$15m 5y 5.75 40.0 RBC CM, CIBC World Markets, Scotiabank
New Mountain Finance US 04/06/2019 US$75m US$11.3m 5y 5.75 7.3 Morgan Stanley, Wells Fargo
Q2 Holdings US 05/06/2019 US$275m US$41.3m 7y 0.75 27.5 JP Morgan, Morgan Stanley, Stifel