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ȕ/FXT. The vital information for that day in the market, including mandates, launches
and pricings – plus granular detail of who bought, why and what that means.
ȕ%FBMT. All the facts and figures pertaining to deals that have priced, or are due to
price, throughout the week – plus weekly deal totals.
ȕ1JQFMJOF. Full details of what deals are in the market, and what will come next.
ȕ-FBHVF5BCMFT. Daily-updated tables showing which companies are leading the way
in issuance, and what proportion of the total market they account for.Specifically written to be digested in minutes, IFR Briefings are designed to be the
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you the depth or breadth of insight you need to put yourself ahead of the competition.'PSNPSFJOGPSNBUJPO
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PSFNBJMJC@TBMFTTFSWJDFT!UIPNTPOSFVUFSTDPNȋRVPUJOH"%To find out how you can generate League Tables andanalyse investment banking and deal trends take alook at ThomsonONE.com Investment Banking and
SDC Platinum.The contents of this Briefing, either in whole or in part, may not be reproduced, copied, or distributed without prior writtenpermission of the publishers. Action will be taken against companies who ignore this warning. IFR Daily Briefings are produced inline with the publishing dates of IFR and will not appear during national holidays and the magazine's annual end of year break.© Thomson Reuters 2011IFR US ECM BRIEFINGNOVEMBER 3 2011 PAGE 1
US EQUITIESBOOKRUNNERS: 1/1/2011 TO 28/10/2011Managing bankNo. ofTotalShare
12 or groupBofA Merrill LynchJP Morgan issues 11399 US$(m)15,090.7 11.015,978.511.7(%)(^354) Morgan StanleyGoldman SachsCredit Suisse 629773 13,645.3 10.014,670.6 10.713,403.29.8
(^687) Deutsche BankBarclays CapitalCitigroup 728094 12,332.212,657.39,775.89.09.27.1
(^9) 10 Wells FargoTotalUBS 4767244 137,186.406,753.07,455.84.95.4
Including all domestic and international deals and rights issuesSource: Thomson Reuters (SDC code: C3r)
US DOMESTIC CONVERTIBLESBOOKRUNNERS: 1/1/2011 TO 28/10/2011Managing bankNo. ofTotalShare
12 or groupJP MorganGoldman Sachsissues 2817 US$(m)4,447.9 18.04,104.4 16.7(%)
(^354) Morgan StanleyCitigroupBofA Merrill Lynch 171515 3,014.0 12.23,725.5 15.12,284.49.3
(^678) Barclays CapitalUBSDeutsche Bank 1387 1,083.31,247.4954.04.43.95.1
(^9) 10 RBC CMTotalCredit Suisse 7857 24,644.0432.3712.42.91.8
Includes all US$ denominated bonds structured to be sold in the US,including exchangeables.
Source: Thomson Reuters (SDC code: G9)
Hin the year, the CB was viewed as the most attractive way to pre-fund the maturity of anan operational bridge to profitability. Fresh from the disappointing launch of a drug earlierUMAN GENOME SCEINCES had laid out plans to market a $400m seven-year convertible bond as
existing debt coming due over the next year.better offer in agreeing to purchase the CB, eliminating any execution risk associated with Citigroup , one of the banks mandated on the CB, presented the company with an even
a marketed transaction.position in dramatic fashion and at profit.The outcome was stunning for reasons beyond just execution. Citigroup exited the
EST Wednesday. Within two hours, ahead of the 9:30 AM opening, it had secured sufficientdemand to increase the size of the commitment to $430m from $400m, at final terms ofThe bank negotiated late into the night Tuesday before launching shortly after 7:00 AM
3%, up 30% with the re-offerin the range of 2.5%–3%.Pre-open marketing allowed the issuer to avoid risks not only in the US, but also around level set at 99, sufficient to ensure a profit – gross spread likely
the world.even by investment-banking standards. One source questioned the “honor among thieves”To banks mandated in the marketed transaction, however, the maneuver broke protocol,
- offerings in 2009. Goldman Sachs was a joint bookrunner, along with Citigroup, on a pair of follow-on
Yield to buyersmarkets with a somewhat disappointing result. Joint bookrunners ENDURO ROYLATY TRUST , a perpetual royalty trust, culminated its second run at the public Barclays Capital,
Citigroup, Goldman Sachs, 13.2m units at $22, well below the $24–$26 indicative range and setting the implieddividend yield at 7.4%. RBC Capital Markets, Wells Fargo Securities finalized pricing of
trust, and a 7.2% yield on a like-sized deal that was pulled at the height of market volatilityin August. One reason for the disappointing outcome (higher yield) is lower oil prices sinceThat compares to a 6.1% yield for Cross Timbers Royalty Trust, the largest perpetual
August – the first-year trust, meaning the vehicle has no defined life. The twist in this case is that EnduroAnother is structural. Like Cross Timbers, Enduro Royalty is structured as a perpetualpayout on the August float was $1.79; now, it is $1.62.
Royalty’s sponsor does not actually operate the oilfields, but, instead owns interests inproperties operators, such as Kinder Morgan, Petrohawk Energy and Apache Corporation.Part of the selling pitch was the balance-sheet strength of large, well-established
operators.Barclays Capital received a 0.5% structuring fee. CHESAPEAKE GRANITE WASH TRUST , a royalty trust affiliated with Chesapeake Energy, is
structured with a 20-year term. The expectation is that production from the underlyingproperties will rise initially and tail off over time. The targeted dividend yield on itsupcoming IPO is 12.9%– 14.3% in the first full year of operation, but dropping to 10.8%–12%
in 2016, according the latest regulatory filing.popular strategy for independent E&Ps to fund their operations. SandRidge Energy sold offSpinning off interests in mature assets into royalty trusts is proving an increasingly
interests in two such vehicles earlier this year and plans to complete a third vehicle.23.375m units, representing a two-thirds interest, at $19–$21 for pricing on November 10.In the case of Granite Wash, Morgan Stanley and Raymond James are targeting pricing of
Pile on to Groupon?A lot of people are scratching their heads, but (^) success. GROUPON ’s IPO is shaping up as a great
company’s $540m IPO suggests the deal is handsomely oversubscribed and will likely priceabove the $16–$18 range.All the talk ahead of today’s much-anticipated pricing of the controversial daily-deal
the deal is at least eight-times covered ahead of the 4:00 PM EST closing of the books. Theirthinking suggests pricing in the range of $19–$20.A bad night in Europe may well change things, but buy-side sources are being told that
investors versus momentum traders that lead underwriters Critical to perceptions will be the quality of the book, that is, the mix of long-term Morgan Stanley , Goldman Sachs
THIS WEEK'S DEALS (DEALS OVER US$50M)TUESDAY Capitec (South Africa – Finance): R791.2m (US$98m) prim at R172 (1.7% disc. to Tues), BAML
FRIDAYNovember 4 – Eurosic (France – Real Estate) 11 warrants for 4 shares, subs Oct 5-Nov 4, BNP €221.1m rights, 6.4m shares at €34.30 (4% prem to Sep 27),
(^) steel business with IPO markets all but frozen for some time to come. It was consideredGerman steelmaker the least likely of the big German IPOs to come to market this year, behind marquee dealsTHYSSENKRUPP is believed to be focusing on a trade sale for its stainless
such as Evonik, one banker away from the deal said. Large buyout houses including Apollo,Blackstone and KKR are said to be circling the business. Companies like Evonik were further into the IPO process and would be ready to launch
once the market normalises, but ThyssenKrupp still has some preparatory work to do. As itis unlikely to be a must-buy like some of the larger German firms, it may have to waitlonger still before a public offering becomes viable, he added.
spin-off IPO, it’s a question of sacrificing some of the proceeds to complete the deal withinmonths rather than wait a year. One banker said a trade sale would probably fetch about^ Even if private equity firms are unlikely to stump up the €2.5bn–€3bn targeted in the
€500m less than an IPO would.in May of this year, but is now understood to be focusing mainly on a straight sale toThe firm appointed Citigroup , Deutsche Bank and Rothschild to look at all available options
private equity fund, although this is not expected to occur before early next year. The spin-off of the stainless division is part of a larger ThyssenKrupp plan to raise €10bn throughdivestments to lower its debt. The Stainless Global unit had sales of €5.9bn in the last fiscal
year and more than 11,000 employees.postponed its planned Oslo listing yesterday. Following a US$425m block trade in February, NORTHATLANTIC DRILLNIG , a carve-out from Seadrill focused on harsh environment operations,
North Atlantic has traded on the OTC said at the time that it was planning a full listing onthe Oslo Stock Exchange later in the year and a filing application was made in earlyOctober.
relationship with Seadrill led to the postponement. A final decision is due in the next 30days, with a London or New York listing also under consideration.^ However, accountancy issues, the level of free-float and share price and the company’s
The contents of this Briefing, either in whole or in part, may not be reproduced, copied, or distributed without prior writtenpermission of the publishers. Action will be taken against companies who ignore this warning. IFR Daily Briefings are produced iline with the publishing dates of IFR and will not appear during national holidays and the magazine's annual end of year break.© Thomson Reuters 2011 n
IFR EUROPEAN ECM BRIEFINGNOVEMBER 3 2011 PAGE 1
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EMEA EQUITIESBOOKRUNNERS: 1/1/2011 TO 28/10/2011Managing bankNo. ofTotalShare
2 Deutsche Bank^1 or groupGoldman Sachsissues^3540 US$(m)12,766.415,221.1 11.6(%)9.7
3 Morgan Stanley5 Credit Suisse4 BofA Merrill Lynch 263333 10,349.88,748.39,419.77.27.96.6
6 JP Morgan8 Citigroup7 UBS (^284016) 5,235.17,070.98,073.95.46.14.0
9 Barclays Capital10 HSBC HoldingsTotal 533229 3,200.8131,787.03,307.02.42.5
Source: Thomson Reuters (SDC code: C4c)EMEA CONVERTIBLES
BOOKRUNNERS: 1/1/2011 TO 28/10/2011Managing bankor group No. ofissuesUS$(m)TotalShare(%)
(^1) 2 BNP Paribas 3 Credit SuisseMorgan Stanley 734 1,022.51,842.21,015.99.817.69.7
4 Deutsche Bank 6 UniCredit5 BofA Merrill Lynch 334 1,010.7826.5945.19.19.77.9
7 Societe Generale9 Lazard-Natixis8 Citigroup (^254) 443.7471.3594.74.55.74.3
10 JP MorganIncluding exchangeablesTotal 303 10,444.3333.13.2
Source: Thomson Reuters (SDC code: M9)
CHong Kong IPO of US$3bn–$4bn, according to the schedule.HThe company, however, is undecided over whether or not it will push back the listingO WTAI FOOK JEWELLERY may seek SEHK approval as early as November 10 for its proposed
hearing because current market conditions are not favourable for the offering. It is lookingto sell shares at around 2012 P/E of 30 times, a valuation that is not easy to achieve in theprevailing markets, according to sources.
control of tycoon Cheng Yu-tung, chairman of Hong Kong property company New World^ As the firm is cash rich, it does not have to rush into a listing, added a source.^ Chow Tai Fook is a jewellery retailer in Hong Kong and mainland China under the
Development.with Goldman Sachs Deutsche Bank, HSBC, are joint global co-ordinators and joint bookrunners. and JP Morgan are sponsors for the deal. The three banks, together Citigroup , Credit
SuisseGSole bookrunner R (^) OUP. The deal comprises 50m shares at HK$8.05 each, bottom of the price range of and UBS are the other bookrunners. UBS has completed a selldown of HK$402.5m (US$51.6m) in YINGDE GSAES
HK$8.05–$8.25, representing a discount of 6.5% to the pre-deal spot. There is a 30-day lock-up for the selling shareholder Baring Private Equity. The deal was launched yesterday, when Hang Seng Index rallied 1.88%. The book was
covered in three hours on demand from investors in Europe, Asia and the US. Long-onlyfunds were dominant, but there were also some hedge funds and other investors.Yingde shares closed today at HK$8.06, holding up above the selldown price, while Hang
Seng Index dropped 2.49%.However, the spin-off unit of Xinyi Glass is still monitoring the market and has yet to set a XIYNI SOLAR has generated some investor interest for its US$500m Hong Kong IPO.
timetable for the offering.China Development Industrial Bank decided to invest up to HK$162m (US$21m) in Xinyi Taiwan-listed company China Development Financial earlier announced that subsidiary
Solar. The investment plan has secured board approval, but is still subject to regulatoryreview.According to an announcement from the parent of Xinyi Solar, 10% of the IPO shares will
be issued to qualifying shareholders. After the spin-off and the offering, Xinyi Glass willhold a 70%–75% stake in Xinyi Solar, which is given capital value of up to HK$12.1bn(US$1.56bn). Citigroup and JP Morgan are arranging the IPO.
raising will comprise a NZ$40m primary offer of new shares. RVG is also making ais placing new and existing shares to institutions and other eligible investors. The capital METLFIECAREsaid it, along with its majority shareholder Retirement Villages New Zealand,
secondary offer of existing shares of approximately NZ$50–$70m which will reduce itsshareholding in Metlifecare to 50–55% on a diluted basis.sole lead manager, placement agent and bookrunner. Talk is that the offer price for the Goldman Sachswill be acting as
share sale is NZ$2.10.downgrade of its profit forecast. In slightly over two months of completing an IPO through COLLINS FOODstock fell sharply after the company on November 2 announced a shock
which owner Pacific Equity Partners shed its stake in the company, Collins said it expectedpro forma NPAT for the first half FY2012 to beforecast determined at the time of the prospectus issuance was A$10.3m.approximately A$8m. The pro forma
believes that pro forma full year NPAT for FY2012 could be in the range of A$18m–$20mcompared to the proIt also said that if current trends were to continue across the full year the companyforma forecast in the prospectus of A$24.7m.
diligence and how the company could have missed by that much in such a short period oftime.” The Collins IPO was the largest listing in Australia this year and it was considered a^ “It is a complete disgrace,” said one banker. “It raises questions about the quality of due
defensive play. Collins Foods, which operates from Brisbane in Queensland, owns thefranchises for KFC and Sizzler.
The contents of this Briefing, either in whole or in part, may not be reproduced, copied, or distributed without prior writtenpermission of the publishers. Action will be taken against companies who ignore this warning. IFR Daily Briefings are produced iline with the publishing dates of IFR and will not appear during national holidays and the magazine's annual end of year break.© Thomson Reuters 2011 n
IFR ASIA ECM BRIEFINGNOVEMBER 3 2011 PAGE 1
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ASIA-PACIFIC EQUITIESBOOKRUNNERS: 1/1/2011 TO 28/10/2011Managing No ofTotalShare
2 Morgan Stanley1 Goldman Sachs bank or groupissues^3356 US$(m)11,015.711,579.57.0(%)6.6
3 UBS5 Deutsche Bank4 BofA Merrill Lynch 284371 9,956.96,714.37,492.34.56.04.0
6 Guosen Securities8 Pingan Securities 7 Nomura 363433 5,930.65,484.54,727.43.33.62.9
9 JP Morgan10 CitigroupTotal 1,572 3528 4,487.94,538.5166,111.32.72.7
Including all domestic and international deals and rights issuesSource: Thomson Reuters SDC code: C04a1r
ASIA-PACIFIC EQUITIES (EX-JAPAN)BOOKRUNNERS: 1/1/2011 TO 28/10/2011Managing No ofTotalShare
2 Morgan Stanley^1 bank or groupGoldman Sachsissues 4331 10,363.2US$(m)9,916.76.9(%)6.6
3 UBS5 BofA Merrill Lynch4 Deutsche Bank (^672641) 6,182.16,578.19,617.64.46.44.1
6 Guosen Securities8 JP Morgan7 Pingan Securities (^363328) 4,538.54,727.45,930.63.24.03.0
9 Citigroup10 Credit SuisseTotal 1,483 (^2734) 149,835.74,301.24,395.12.92.9
Including all domestic and international deals and rights issuesSource: Thomson Reuters SDC code: C04a2r
ALL INTERNATIONAL ASIAN CONVERTIBLESBOOKRUNNERS: 1/1/2011 TO 28/10/2011Managing No ofTotalShare
2 Nomura^1 bank or groupGoldman Sachsissues^65 1,850.21,430.8US$(m)15.2(%)11.8
3 JP Morgan5 Morgan Stanley4 Credit Suisse 1074 1,224.2778.8988.18.110.16.4
6 BofA Merrill Lynch8 Mizuho Financial Group7 Barclays Capital (^531) 635.7657.0702.65.45.85.2
9 RBS10 UBSTotal 4446 12,174.8593.2608.24.95.0
Including exchangeables.Source: Thomson Reuters SDC code: M10
©REUTERS/Daniel Munoz
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