As a result its €575m revolving credit
facility “will remain in place”. In addition,
the repurchase of convertible bonds due
2021 “will not take place at this time”.
The company had said earlier that a new
€200m 4.5-year revolving credit facility and
THEûREPURCHASEûWEREûSUBJECTûTOûTHEû
completion of the bond sale.
4HEû$UTCHûlRMûHADûKICKEDûOFFûAûFOUR
DAYû
ROADSHOWûLASTû-ONDAYûTOûMARKETûTHEûlVE
year non-call two senior secured issue. Three
investors had told IFR they were expecting a
six- handle yield.
Global coordinators are Credit Suisse (B&D),
ING, Jefferies and Rabobank. BNP Paribas and
HSBC are bookrunners.
Most of Fugro’s business is in offshore
geological surveys for the oil and gas and
wind industries.
“It’s basically a survey company driven by
oil prices and infra spend,” said one investor
attending the roadshow.
But with the oil price falling sharply -
Brent futures were bid at US$51 on Friday,
compared with US$59 the week before - the
company decided to withdraw from the
market.
Some investors were expecting the
decision. “Fugro has probably picked theworst week to come to market,” said a
second investor, while the roadshow was
taking place. “I’m surprised they haven’t
pulled it.”
Around half of Fugro’s revenues are
exposed to oil and gas, he said.
“Fugro has a history of fairly thin cash
generation, the outlook for oil and gas
demand doesn’t seem great, and coronavirus
COULDûCAUSEûDELAYSûTOûPROJECTSûANDûTHEIRû
order book,” said the investor.
“I’m not sure how many people are
looking to add this type of risk.”
A lead had defended the decision to
market the company to investors. “The
main thing is to get people up to date with
the credit as Fugro is a new issuer in the
market,” said the banker.
h4HEYVEûDIVERSIlEDûTHEIRûBUSINESSûFROMû
oil and gas, and are not super impacted on
the coronavirus side.”
Around 52% of Fugro’s revenues are now
generated from the oil and gas sector, down
from 78% in 2014. It has expanded into
markets, including offshore wind.
Fugro, which is still recovering from the
collapse of oil prices in 2014-15, has been
assigned ratings of B2/B/B. Over the past
three years, it has cut its workforce by morethan 20% and has sold some non-core assets,
according to S&P.
The company’s target is to reduce net
leverage below 1.5x, down from 3.6x.BROOKFIELD LOOKS TO SELL TEEKAY
BONDTEEKAY OFFSHORE PARTNERS is marketing a
resale of its 8.5% senior unsecured notes due
July 2023, owned by its sponsor Canadian
ASSETûMANAGERû"ROOKlELD
"ROOKlELDûISûLOOKINGûTOûSELLûUPûTOû
US$411.26m of the oil shipping company’s
bonds, via Jefferies and DNB Bank. Other banks
may be added to the roster. It is hoping to
wrap up the sale in the week of March 2.
Teekay met some of its note-holders
during a non-deal roadshow in New York
and Boston in December, said CFO Jan Rune
Steinsland on February 7 during the
company’s fourth-quarter earnings call.
Teekay originally priced the US$700m
8.5% July 2023s in June 2018, according to
IFR data.
"ROOKlELDûPURCHASEDû53MûOFûTHOSEû
bonds at the time, according to a December
ûlLINGûFROMû4EEKAY
“The bond priced in 2018 was part of
Teekay’s aim to strengthen and restructure
its balance sheet, and it made sense for
"ROOKlELDûTOûBEûPARTûOFûTHAT vûSAIDû
Steinsland in a call with IFR.
h.OWû"ROOKlELDûWANTSûTOûSEEûIFûTHEREûISû
interest from other parties to take some of
those bonds and to release some liquidity.”
The resale will provide more liquidity for
Teekay’s third-party bondholders, and will
help the bond down the road when it comes
TOûRElNANCING ûHEûSAID
"ROOKlELDûACQUIREDûAûûSTAKEûINû4EEKAYû
Offshore Partners in May 2019, and the deal
was wrapped up on January 22, according to
an investor presentation.
The asset manager is now looking to sell
its holdings of Teekay’s 2023 notes. The
notes were quoted at 102, according to
2ElNITIVûDATA
Teekay was last in the bond market in
October, when it got a cool response from
INVESTORSûFORûAûlVE
YEARû53ûDOLLARûGREENû
mOATER
That deal, issued through subsidiary
Teekay Shuttle Tankers, was dogged by
questions over whether the green label
was suitable for a bond that would help
lNANCEûOILûTANKERSû)TûEVENTUALLYûRAISEDû
US$125m, with the bond pricing at 650bp
over three-month Libor, equivalent to a
YIELDûOFûABOUTûûINûlXED
RATEûTERMS
Teekay has since been under
investigation by Norway’s environmental
crimes unit on suspicion of illegally
disposing of a shuttle tanker in south
Asian scrapyards.36 International Financing Review February 29 2020ALL US$ DENOMINATED HIGH-YIELD BONDS
BOOKRUNNERS – 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Including US domestics, Euro, foreign, globals. Excluding equity-related debt.
Source: Refinitiv SDC code: B51 BofA 49 7,304.44 9.0
2 JP Morgan 53 7,185.34 8.9
3 Barclays 43 6,473.26 8.0
4 Citigroup 45 5,619.12 6.9
5 Credit Suisse 37 4,686.44 5.8
6 Goldman Sachs 38 4,494.71 5.5
7 Morgan Stanley 26 4,446.99 5.5
8 Deutsche Bank 38 4,060.59 5.0
9 Wells Fargo 29 3,671.92 4.5
10 RBC 27 3,627.58 4.5
Total 120 81,173.28ALL NON-DOLLAR DENOMINATED HIGH-YIELD BONDS
1/1/2020 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)Excluding equity-related debt.
Source: Refinitiv SDC code: B61 JP Morgan 16 1,891.28 9.5
2 Deutsche Bank 11 1,601.70 8.1
3 Citigroup 13 1,335.14 6.7
4 BNP Paribas 12 1,139.86 5.7
5 ING 10 1,110.34 5.6
6 Barclays 10 1,072.80 5.4
7 HSBC 13 1,019.70 5.1
8 Credit Agricole 7 994.41 5.0
9 Credit Suisse 7 978.24 4.9
10 UniCredit 9 904.62 4.5
Total 37 19,889.64ALL EUROPEAN HIGH-YIELD ISSUERS
1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Excluding equity-related debt.
Source: Refinitiv SDC code: B06c1 JP Morgan 17 2,284.81 9.3
2 Deutsche Bank 10 2,038.77 8.3
3 Citigroup 14 2,028.61 8.2
4 BNP Paribas 12 1,535.83 6.2
5 ING 9 1,326.58 5.4
6 Credit Suisse 7 1,277.19 5.2
7 Credit Agricole 6 1,203.41 4.9
8 Barclays 8 1,183.53 4.8
9 SG 7 1,125.88 4.6
10 HSBC 12 1,124.68 4.6
Total 38 24,594.42ALL ASIAN HIGH-YIELD ISSUERS
1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Excluding equity-related debt.
Source: Refinitiv SDC code: B06d1 Credit Suisse 18 2,362.97 12.5
2 UBS 10 1,628.97 8.6
3 BofA 5 1,531.66 8.1
4 Tianfeng Secs 2 1,250.00 6.6
5 Goldman Sachs 9 1,144.82 6.1
6 Citic 15 883.49 4.7
7 Haitong Secs 21 859.30 4.5
8 Barclays 11 672.23 3.6
9 Morgan Stanley 7 627.50 3.3
10 Standard Chartered 6 577.20 3.1
Total 37 18,918.746 IFR Bonds 2322 p 25 - 43 .indd 36 28 / 02 / 2020 19 : 15 : 32