IFR International - 21.07.2018

Capital markets week ahead:

China Tower, GlobalLogic, Berry Petroleum

TOWERING ABOVEû"OOKSûOPENûONû-ONDAYûONû
THEûBIGGESTû)0/ûTOûHITûGLOBALûMARKETSûSINCEû
e-commerce giant Alibaba went public almost
FOURûYEARSûAGOû#HINAû4OWERûTHEûWORLDSû
LARGESTûOPERATORûOFûMOBILEûPHONEûMASTSûISû
hoping to raise as much as US$10bn–
ASSUMINGûTHEûGREENSHOEûISûEXERCISEDûnûFROMû
THEûLISTINGûWHICHûISûEXPECTEDûTOûPRICEûINû(ONGû
+ONGûAûWEEKûONû7EDNESDAY
7ITHûTHEûUNDERWHELMINGû)0/ûOFû
SMARTPHONEûMANUFACTURERû8IAOMIûSTILLûONû
EVERYONESûMINDSûTHEûDEALûWILLûBEûANû
IMPORTANTûTESTûOFûSENTIMENTûFORû#HINESEû
TECHNOLOGYûSTOCKSû8IAOMIûRAISEDûJUSTûOVERû
half of what it had been hoping for when it
LISTEDûINû(ONGû+ONGûLASTûMONTHû"ANKERSûAREû
working to line up potential cornerstone
INVESTORSûFORû#HINAû4OWERûWHICHûTHEYûHOPEû
WILLûHELPûITûAVOIDû8IAOMISûFATE

DISCOUNT WINDOWû)TSûAûBUSYûWEEKûFORû
#HINESEûLISTINGSûINûTHEû53ûWITHûFOURû
COMPANIESûHOPINGûTOûRAISEûOVERû53BNû
COMBINEDû0INDUODUOûAûPLATFORMûTHATû
allows consumers to group together to get
BIGGERûDISCOUNTSûISûTHEûBIGGESTûWITHûAû
53BNûDEALûTARGETû$ATAûSERVICESûPROVIDERû
!URORAû-OBILEûISûEYEINGû53MûCARû
lNANCINGûPLATFORMû#ANGOû53MûANDû
#HINESE
OWNEDûSOFTWAREûDEVELOPERû/PERAû
53M

LEVERED DOWNû&RIDAYûISûTHEûDEADLINEûTOû
PARTICIPATEûINûAû53MûLEVERAGEDûBUYOUTû
LOANûBACKINGû!PAXû0ARTNERSûPURCHASEûOFû
ENGINEERINGûSERVICESûPROVIDERû'LOBAL,OGICû4HEû
DEALûCOMESûATûAûTRICKYûTIMEûFORûTHEû,"/ûMARKETû
nûESPECIALLYûINû%UROPEûWHEREûNEARLYûAûTHIRDûOFû
PRIVATEûEQUITY
BACKEDûBUYOUTûLOANSûCOMPLETEDû
so far this year are trading below par.

RIGGED LISTINGû"ERRYû0ETROLEUMûWILLûGOûPUBLICû
on Wednesday for a second time. The
#ALIFORNIANûOILûANDûGASûPRODUCERûWASûBOUGHTûBYû

LARGERûRIVALû,INNû%NERGYûFORû53BNûINûû

BUTû,INNûWENTûBANKRUPTûTHREEûYEARSûLATERûANDû

creditors are now spinning off the business

AGAINû0ROCEEDSûFROMûTHEûLISTINGûWILLûPRIMARILYû

GOûTOûPAYINGûCREDITORSûOWEDû53BNûBYû,INN

EMERGING FROM THE STORM Issuance out of

THEû#%%-%!ûREGIONûHASûBEENûHITûBADLYûBYû

THEûRISK

OFFûSENTIMENTûOFûTHEûLASTûFEWûWEEKSû

but bankers are optimistic that we could see

THEûlRSTû53ûDOLLARûTRADEûINûMOREûTHANûSIXû

WEEKSûOVERûCOMINGûDAYSû4WOûISSUERSûAREû

CLOSEûTOûPULLINGûTHEûTRIGGERûASSUMINGû

conditions hold. Romania was the last deal

OVERûTHEûLINEûINûDOLLARSnûALTHOUGHûONLYûAFTERû

ITûOFFEREDûINVESTORSûAûHEALTHYûPREMIUM

RED BLOOD CELLSû!SCLETISû0HARMAûWILLûONû

4HURSDAYûBECOMEûTHEûlRSTûCOMPANYûTOûTAKEû

ADVANTAGEûOFûRECENTûRULEûCHANGESûGIVINGûTHEû

GREENûLIGHTûTOûBIOTECHNOLOGYûANDûTECHûlRMSû

THATûHAVEûNOûPROlTSûORûREVENUESûTOûLISTûINû(ONGû

+ONGû3INGAPOREANûSOVEREIGNûWEALTHûFUNDû')#û

HASûALREADYûSHOWNûITSûSUPPORTûCOMMITTINGûTOû

BUYINGûALMOSTûAûlFTHûOFûTHEûDEALûWHICHûISû

EXPECTEDûTOûRAISEûUPûTOû(+BNû53M   

ON THE ROAD AGAINû#ONNECTû0LUSûWHICHû

MANAGESûANDûMAINTAINSûTHEû-ûMOTORWAYû

THATûCIRCLESû,ONDONûISûEXPECTEDûOUTûWITHûAû

sterling bond deal that could be as big as

aMû4HEûCOMPANYûWHICHûISûSEEKINGûTOû

RElNANCEûITSûEXISTINGûLOANûFACILITIESûINûTHEû

BONDûMARKETûHITûTHEûROADûTOûMEETûWITHû

INVESTORSûLASTûWEEKû)TûWILLûBEûHOPINGûTHATû

THEûDEALûDOESNTûGETûSTUCKûINûTRAFlC

WRAP ARTIST Subscription ends on Tuesday on

AûaBNûRIGHTSûISSUEûFROMû5+ûPACKAGINGû

MANUFACTURERû$3û3MITHûFOLLOWINGûAûFORTNIGHT

LONGûPROCESSû)TûISûRAISINGûCASHûTOûlNANCEûITSû

ACQUISITIONûOFû3PANISHûRIVALû%UROPACûINûAûDEALû

THATûWASûAPPROVEDûEARLIERûTHISûMONTHû$3û

3MITHûISûPAYINGûõûPERû%UROPACûSHAREû

WHICHûVALUESûTHEûSHAREûCAPITALûATûõBNûWITHû

ANûIMPLIEDûENTERPRISEûVALUEûOFûõBN

BAILOUT MONEYû4HEû%UROPEANû3TABILITYû

-ECHANISMûWHICHûHASûHELPEDûDISBURSEû

more than €270bn of bailout money to

#YPRUSû'REECEû)RELANDû0ORTUGALûANDû3PAINû

OVERûTHEûPASTûFEWûYEARSûISûSETûTOûVISITûBONDû

markets. The deal comes just days after the

%UROPEANû&INANCIALû3TABILITYû&ACILITYûAû

PRECURSORûTOûTHEû%3-ûSOLDûõBNûOFûBONDSû

INCLUDINGûAû

YEARûTRANCHE

HARD CELLû(AVINGûlRSTûlLEDûFORûAûCONlDENTIALû

LISTINGûMOREûTHANûTWOûYEARSûAGOûFUELûCELLûMAKERû

"LOOMû%NERGYûlNALLYûGOESûPUBLICûONû4UESDAYû

WITHûAû.93%û)0/ûRAISINGûUPûTOû53Mû"UTû

THEûDEALûCOMESûWITHûBIGûQUESTIONûMARKSûOVERûITSû

NUMBERSûWHICHûAREûDISTORTEDûBYûHISTORICû

purchase agreements and lost-then-reinstated

TAXûCREDITSû(ASûAûPROLONGEDûROADSHOWûBEENû

ENOUGHûTOûCHARGEûINVESTORSûINTEREST

SHOPPING LISTû#HILEANûSHOPPINGûCENTREûOPERATORû

-ALLPLAZAûISûSETûTOûBREAKûAûLONGûLULLûINû,ATINû

!MERICANûLISTINGSûWITHûAû0SBNû53M   û)0/û

ONû7EDNESDAYû4HEûDEALûTHEûlRSTûOUTûOFûTHEû

REGIONûSINCEû"ANCOû)NTERSûDEALûINû!PRILûWILLûSEEû

THREEûFAMILIESûOFmOADûBETWEENû

ûOFûTHEû

COMPANYûASûTHEYûLOOKûTOûDIVERSIFYûTHEIRû

INVESTMENTSû#REATEDûûYEARSûAGOû-ALLPLAZAûHASû

ûSITESûACROSSû#HILEû0ERUûANDû#OLOMBIA

BRICKING IT?û!$/û0ROPERTIESûISûONCEûAGAINû

EXPECTEDûOUTûWITHûAûõMûBONDûDEALûAFTERû

it failed to materialise last week. The sector

has printed €20bn of bond deals already this

year.

HOME AND DRY û'ERMANûPROPERTYûRIVALû

#ONSUSûHOPESûTOûlNALLYûCOMPLETEûITSûõMû

RIGHTSûISSUEûONû-ONDAYû4HEûCOMPANYûWHICHû

has been growing at breakneck pace since its

lRSTûCAPITALûMARKETSûTRANSACTIONûLASTûYEARûHADû

BEENûHOPINGûTOûWRAPûTHINGSûUPûLASTû-ONDAYû

BUTûEXTENDEDûSUBSCRIPTIONûBYûANOTHERûWEEKû

QUARTER-POUNDER UBS kicks off the

%UROPEANûINVESTMENTûBANKINGûREPORTINGû

SEASONûONû4UESDAYû)NVESTORSûAREûEXPECTINGûAû

DECENTûQUARTERûnûLARGERû53ûRIVALSûHAVEûRELEASEDû

some decent numbers in the last few weeks.

!DDEDûTOûTHATû$EUTSCHEû"ANKûPUTûOUTûAûPROlTû

warning– this time warning of better-than-

EXPECTEDûPROlTSûnûLASTûWEEKû)TûRELEASESûFULLû

details of its earnings on Wednesday.

“Sometimes you get the right side of the deal. Sometimes you get

THEûWRONGûSIDEûOFûAûDEALû3OMETIMESûYOUREûNOTûINûAûDEALv

BAML CEO BRIAN MOYNIHAN, P

LAST WEEK IN NUMBERS

12 ûnû9EARSû,LOYDû"LANKFEINûSPENTûRUNNINGû

'OLDMANû3ACHSûBEFOREûANNOUNCINGûHISû

retirement last week

4%ûnû2ISEûINûlXEDûINCOMEûTRADINGû

REVENUESûATûBIGûlVEû53ûBANKSûCOMPAREDû

to a year earlier

60%ûnû0ERCENTAGEûOFûINVESTORSû

RESPONDINGûTOûAû"!-,ûSURVEYûWHOûCITEûAû

trade war as the biggest risk