DEMANDûFORûTHEûlVE
YEARûEURO ûõBN ûTHANû
for the eight-year sterling, which garnered
£450m of orders.
Still, there was some tightening on both
LEGS ûBYûBPûONûTHEûõMûlVE
YEAR ûWHICHû
printed at mid-swaps plus 132bp, and by
BPûONûTHEûaMûEIGHT
YEARûATûAûlNALû'ILTSû
plus 190bp.
In the absence of a curve, leads instead
referenced a number of similarly rated
comparables, all trading tighter than
)NFORMA ûRATEDû"AA"""ûSTABLENEGATIVE ûBYû
Moody’s/S&P.
These include €500m December 2023s
from Baa3/BBB- rated ITV at swaps plus
92bp, €600m April 2024s from
4ELEPERFORMANCEû"""
ûATûPLUSûBP û
£350m Intercontinental Hotels August
Sû""" ûATû'ILTSûPLUSûBP ûANDûaMû
September 2026s from Imperial Brands
"AA"""""" ûATûPLUSûBP
All these trades, like Informa, include
coupon step-ups in case of a downgrade to
sub-investment grade.
“For a debut, there’s no fair value as
such,” said a lead. “It’s more about where
people want to buy this type of credit, where
the market is at the moment, especially
when you see the levels that were required
to clear trades from the likes of O2 and
Blackstone. The outright levels have to be
attractive.”
/û4ELEFONICAû$EUTSCHLAND û"""ûPOSITIVE û
by Fitch, had to offer a chunky spread for its
seven-year in late June to cover all the bases
in terms of investor feedback. The €600m
trade printed at swaps plus 127bp,
substantially wider than parent Telefonica’s
*ANUARYûSû"AA"""""" ûATûPLUSûBP
Blackstone Property Partners Europe,
"""
ûPOSITIVE ûBYû30 ûPRINTEDûITSûDEBUTûFOUR
year at 130bp over swaps. In comparison, an
April 2025 from Grand City Properties, Baa1/
BBB+, was quoted at 109bp in late June.
Informa was the only trade out on
Monday given the weaker macro backdrop,
partly because of the political situation in
Germany and the ongoing trade war.
“Today, the market is feeling a bit soft.
That’s why doing a deal that has been on the
ROADûFORûTHREEûDAYSûISûlNEûBUTûFORûISSUERSû
looking to optimise pricing via a drive-by,
THISûISûNOTûTHEûRIGHTûDAYû)ûEXPECTûVOLATILITYûTOû
stay at least for the rest of the month,” the
lead said.
Informa had been contemplating
MATURITIESûOFûTHREE ûlVEûORûEIGHTûYEARSû4HEû
BANKERûSAIDûTHEûlNALûCOMBINATIONûWASûTHEû
best compromise between where investor
demand is and what the issuer can get.
“They wanted to do as long as possible. It’s
also a question of arbitrage,” he said.
Proceeds will go towards repaying debt
linked to the £3.9bn acquisition of events
organiser UBM, which completed at the end
of June. It secured a £1.6bn-equivalent loan
backing the deal in March.
BNP Paribasû"$ ûBank of America Merrill
Lynch and Santander were active
bookrunners.VESTEDA BUILDS REAL ESTATE SUPPLYVESTEDA has further revived the real estate
sector, bringing an almost twice-subscribed
€500m eight-year.
In late June, three real estate issuers
helped themselves to euro paper, ending a
one-month hiatus in the sector.
The no-grow deal printed at 135bp over
mid-swaps on pre-reconciliation books of
about €1.15bn.
Initially marketed at swaps plus 145bp-
150bp, the trade started well inside
Altareit’s controversial debut. The French
REIT’s July 2025s raised €350m at plus
245bp but have since widened out, touching
255bp at one stage.
But a banker away referenced Vonovia
instead to gauge fair value on the Dutch
residential real estate investment fund,
saying he saw a 40bp pick-up to the Germanissuer at IPTs. Both are rated BBB+ by S&P
versus Altareit’s BBB score.
Vonovia has June 2026s at plus 102bp. On
*UNEû ûITûPRINTEDûAûõMûlVE
YEARûATûPLUSû
73bp on €1.4bn of demand and left a 20bp
premium on the table. It was trading at 75bp
last Tuesday, according to Tradeweb prices.
While Vonovia has a full curve, Vesteda
only has two short-dated bonds - July 2019s
and October 2022s, the latter at plus 62bp
pre-announcement.
Part of the proceeds will be used to
RElNANCEûAûõMûBRIDGEûFACILITYûFORûTHEû
acquisition of the Amstel Tower in
Amsterdam.
Supply from the real estate sector in the
lRSTûHALFûOFûûHASûSHOWEDûFEWûSIGNSûOFû
abating, almost doubling year-on-year to
over €19bn, according to IFR data.
“Real estate is a relatively new asset
class,” said the banker. “That’s one of the
reasons why we’re seeing so many
companies come to the market.
“The likes of Vonovia and Unibail are also
INûSIGNIlCANTûACQUISITIONûMODEûSOûTHEYûNEEDû
the funding quickly. Finally, given their
ratings, these issuers need to improve their
unencumbered debt ratio, and issuing senior
unsecured debt is one way of doing this.”
The real estate issuance stands in stark
contrast to the 22% year-on-year drop in
overall euro and sterling investment-grade
corporate supply. The dearth of reverse
Yankees is the big reason behind the decline
with US borrowers still wrapping their
HEADSûAROUNDûTAXûREFORMS ûACCORDINGûTOû
bankers.
ABN AMRO, BNP Paribasû"$ ûDeutsche
Bank and Rabobank were active bookrunners.FRESENIUS, BPOST OUT WITH DEBT REFI
DEALSTwo corporates emerged last Wednesday to
RElNANCEûEXISTINGûDEBTûAFTERûANû
improvement in market sentiment.ALL INV-GRADE US CORPORATE BONDS
BOOKRUNNERS: 1/1/2018–30/6/2018
Managing No of Total Share
bank or group issues US$(m) (%)
1 BAML 44 7,729.94 9.2
2 JP Morgan 42 6,804.75 8.1
3 Morgan Stanley 26 5,701.14 6.8
4 Citigroup 32 5,640.33 6.7
5 Wells Fargo 40 5,094.69 6.1
6 Barclays 28 4,437.91 5.3
7 Mizuho 25 4,233.42 5.1
8 MUFG 19 3,377.88 4.0
9 Goldman Sachs 17 3,225.93 3.9
10 Deutsche Bank 14 2,919.16 3.5
Total 112 83,572.03
Excluding equity-related debt, ABS/MBS, all foreign issues, global issues
and non corporates.
Source: Thomson Reuters SDC code: F6a
ALL US INVESTMENT GRADE CORPORATE DEBT
(EXCLUDING SOLE SELF FUNDED DEALS)
BOOKRUNNERS: 1/1/2018–30/6/2018
Managing No of Total Share
bank or group issues US$(m) (%)
1 JP Morgan 229 66,764.44 11.1
2 BAML 209 64,857.05 10.8
3 Citigroup 200 56,253.24 9.4
4 Goldman Sachs 126 42,721.47 7.1
5 Barclays 111 40,758.28 6.8
6 Morgan Stanley 155 38,346.65 6.4
7 Wells Fargo 145 37,358.29 6.2
8 RBC 83 23,959.90 4.0
9 HSBC 67 23,120.52 3.9
10 Deutsche Bank 72 19,272.21 3.2
Total 515 600,308.98Source: Thomson Reuters SDC code: F09aALL CORPORATE BONDS IN EUROS
BOOKRUNNERS: 1/1/2018–30/6/2018
Managing No of Total Share
bank or group issues €(m) (%)
1 BNP Paribas 94 16,487.28 8.9
2 SG 76 13,733.52 7.4
3 Deutsche Bank 72 12,328.32 6.7
4 HSBC 75 10,435.30 5.6
5 JP Morgan 66 10,407.84 5.6
6 Goldman Sachs 38 9,995.29 5.4
7 UniCredit 53 9,697.00 5.2
8 Credit Agricole 58 9,549.04 5.2
9 Barclays 46 8,412.30 4.6
10 ING 43 7,501.01 4.1
Total 268 184,708.53
Excluding equity-related debt. FIGs, ABS/MBS.Source: Thomson Reuters SDC code: N8