“The market is okay and you certainly can
do a deal as long as you pay the right level of
new issue premium,” said a lead banker on
BPOST.
The Belgian provider of postal services,
RATEDû!ûSTABLE ûBYû30 ûSTARTEDûMARKETINGûITSû
eight-year debut offering at swaps plus
85bp-90bp. As demand hit €1.25bn, bankers
scraped away 13bp from the tight end of IPT
levels and set the size at €650m.
Without a curve, the banker pointed
instead to a number of comps, although all
of those were trading a fair chunk tighter.
A3 rated Deutsche Post had €500m April
2026s at plus 39bp while A/A+ rated La
Poste’s June 2025s were at 13bp, Tradeweb
prices showed pre-announcement.
“These names are helpful but they trade
at very tight levels given La Poste is a credit
you’d compare more to France while
Deutsche Post has been bought massively by
the ECB. The IPTs also point to the feedback
collected during the roadshow,” the lead
said.
Proceeds will go towards the repayment
of a bridge facility agreement. The banker
declined to comment further but Bpost’s
fourth quarter 2017 results show that it
entered a bridge loan for the purchase of US
e-commerce company Radial last year.
BNP Paribasû"$ ûBank of America Merrill
Lynch and ING ran the trade.
FRESENIUS MEDICAL CARE was also looking to
RElNANCEûEXISTINGûLIABILITIESû4HEûHEALTHCAREû
group has two bonds, for a combined €1bn,
maturing by April 2019.
Its €500m seven-year launched at swaps
plus 102bp, 23bp inside the tight end of
IPTs, on pre-reconciliation books of over
€2.4bn.
A lead pegged fair value at 90bp,
referencing its curve, while a banker away
saw it at 85bp before the roadshow and 95bp
afterwards.
An investor said the trade would look
attractive all the way down to 100bp. “It’s
Triple B minus across the board and
although I’m not a massive fan of the sector,
it’s a relatively defensive deal. It’s an
opportunity to get something a little bit
cheaper in that segment.”
The healthcare group was last in the
market in January 2017 via Fresenius
Finance Ireland. At the time, it drummed up
€11.5bn of interest for the €2.6bn four-
tranche deal to part-fund the €5.76bnacquisition of Spanish hospital chain IDC
Salud.
Also last Wednesday, INNOGY went ahead
with a €250m tap of its November 2022s,
taking the issue size to €750m.
The add-on was initially marketed as a
minimum €100m with guidance at plus
45bp area. It launched at plus 40bp on books
of €350m.
The November 2022s, part of a dual-
trancher, printed in May at plus 50bp and
were trading plus 32bp pre-announcement.
The issuer said it was also open to reverse
inquiries for a potential increase of the
€500m May 2026s, which were issued at the
same time at plus 85bp. They were trading
at plus 68bp last Wednesday. However, that
tap hasn’t happened yet.
NatWest Markets was the sole bookrunner
on the tap.DEFENSIVE THURSDAY FOR ISSUERSOnly two French companies dipped their
toes in the market last Thursday, bringing
DEFENSIVEûSHORT
DATEDûmOATERSûDESPITEûlRMû
conditions.
“I’m surprised we’re not seeing more deals.
The hybrid market seemed to have been well
supported over the last two sessions so I
would have thought that broader risk
improvement would have convinced issuers
to pull the trigger,” said one banker away.
“I guess some of them are creeping into
blackout, already have a lot of cash or want
duration but there’s nervousness about how
the curve looks.”
SAFRAN brought a no-grow €500m two-year
FRN, which priced 12bp inside the tight end
of the 45bp/50bp discount margin IPTs on a
lNALûBOOKûOFûõBNû$EMANDûHADûPEAKEDû
at over €1.5bn.
The unrated French aerospace company
has two outstanding FRNs, due June 2019
and June 2021.
The trade came three weeks after Safran
SOLDûAûõMûlVE
YEARûCONVERTIBLEû4HATûDEALû
was notable as it was a vanilla structure
despite the company having an implied high
credit rating.
Credit Agricole and CM-CIC were global
coordinators, joined by SMBC Nikko as
bookrunner.
ALD meanwhile was out with a benchmark
THREE
YEARûmOATER ûWHICHûITûSTARTEDû
marketing at three-month Euribor plus
70bp area. The €500m trade later launched
at plus 62bp.
Sole bookrunner was Societe Generale, the
OWNERûOFûTHEû&RENCHûmEETûMANAGINGûANDûCARû
leasing company.
ALD has June 2020, November 2020 and
February 2021 FRNs outstanding.
“At the moment, we’re seeing a lot of
defensive trades across the board - look at allBONDS CORPORATESALL INVESTMENT-GRADE BONDS IN EUROS
BOOKRUNNERS: 1/1/2018–30/6/2018
Managing No of Total Share
bank or group issues €(m) (%)
1 BNP Paribas 129 35,171.57 7.1
2 SG 130 32,797.41 6.6
3 HSBC 151 32,527.65 6.5
4 JP Morgan 105 32,287.76 6.5
5 Credit Agricole 114 30,511.38 6.1
6 Deutsche Bank 122 29,089.67 5.8
7 Barclays 88 28,420.60 5.7
8 Goldman Sachs 64 23,628.58 4.7
9 UniCredit 109 23,385.07 4.7
10 Citigroup 77 19,901.90 4.0
Total 635 498,505.90
Excluding ABS/MBS, equity-related debt.
Source: Thomson Reuters SDC code: N9
ALL CORPORATE BONDS IN STERLING
BOOKRUNNERS: 1/1/2018–30/6/2018
Managing No of Total Share
bank or group issues £(m) (%)
1 Barclays 9 1,035.84 16.6
2 HSBC 8 949.75 15.2
3 Lloyds Bank 6 648.64 10.4
4 RBC 3 496.43 8.0
5 Morgan Stanley 3 441.48 7.1
6 MUFG 4 328.21 5.3
7 NatWest Markets 4 321.85 5.2
8 BNP Paribas 4 284.05 4.6
9 Credit Suisse 4 250.00 4.0
10 Santander Global 2 154.67 2.5
Total 22 6,239.35Source: Thomson Reuters SDC code: N8aALL SWISS FRANC BONDS EXCLUDING
SECURITISATIONS
BOOKRUNNERS: 1/1/2018–30/6/2018
Managing No of Total Share
bank or group issues SFr(m) (%)
1 Credit Suisse 72 7,847.28 28.1
2 UBS 64 7,021.78 25.1
3 Verband Schweizerischer 7 3,416.40 12.2
4 ZKB 33 3,393.82 12.2
5 Raiffeisen Schweiz 19 1,709.14 6.1
6 BNP Paribas 13 1,287.35 4.6
7 Deutsche Bank 8 666.14 2.4
8 Commerzbank 7 611.52 2.2
9 HSBC 5 435.63 1.6
10 Bank Vontobel 1 225.00 0.8
Total 128 27,931.49
Including preferreds. Excluding equity-related debt.
Source: Thomson Reuters SDC code: K06bALL INTERNATIONAL STERLING BONDS
EXCLUDING SECURITISATIONS
BOOKRUNNERS: 1/1/2018–30/6/2018
Managing No of Total Share
bank or group issues £(m) (%)
1 NatWest Markets 55 8,602.50 13.4
2 HSBC 57 8,561.65 13.4
3 Barclays 41 6,263.92 9.8
4 RBC 38 5,710.50 8.9
5 Lloyds Bank 32 4,840.59 7.6
6 BAML 17 3,267.01 5.1
7 Santander Global 16 3,209.29 5.0
8 JP Morgan 14 3,145.50 4.9
9 Nomura 23 2,948.00 4.6
10 Deutsche Bank 11 2,846.78 4.4
Total 161 64,056.25
Including preferreds. Excluding equity-related debt.
Source: Thomson Reuters SDC code: K05a