53ûINVESTMENT
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Yet some in the market still expect a
pick-up in issuance in the remaining weeks
OFûTHEûYEAR ûESPECIALLYûIFûSOMEûSTABILITYû
RETURNSûTOûEQUITIES
h)SSUERSûHAVEûFROMûNOWûUNTILûTHEûlRSTûTWOû
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SKIES ûPEOPLEûAREûGOINGûTOûFALLûOVERû
themselves to push their way to the front of
THEûLINEv
CONSTELLATION BRANDS GETS SEED
MONEY FOR CANNABIS PLAY
CONSTELLATION BRANDS priced a four-part
53BNûBONDûLASTûWEEKûTOûlNANCEûITSû
53BNûINVESTMENTûINû#ANADIANûCANNABISû
company CANOPY GROWTH
The deal - expected to increase
Constellation’s leverage to around 4x from
X ûACCORDINGûTOû#REDIT3IGHTSû
ûSAWûPRICEû
PROGRESSIONûOFûBP
BP
.EWûLEVERAGEûWILLûPUTûTHEûCOMPANYûINûTHEû
middle pack of other large food-and-
BEVERAGEûCREDITSûSEEKINGû-!ûDEALS ûSAIDû
*AMESû$UNN ûSENIORûANALYSTûOFû53ûCONSUMERû
GOODSûATû#REDIT3IGHTS
“This is the largest investment we’ve seen
INTOûTHEûCANNABISûFOOD
AND
BEVERAGEûSPACE û
and there are concerns that Constellation is
THEûlRSTûMOVER vûHEûTOLDû)&2
“But it doesn’t take away from the core
STRENGTHSûOFû#ONSTELLATIONû"RANDS vûHEûSAID
“They have a business that generates a lot
OFûCASHmOW ûITûHASûSTRONGûMARGINS ûBETTERû
growth than some of the other Triple B
names in the food-and-beverage space and
THEYûHAVEûSOMEûmEXIBILITYûTOûTAKEûONûMOREû
leverage and the ability to delever in the
COMINGûYEARSv
&ORûEXAMPLE û'ENERALû-ILLSûISûLEVEREDûATû
X ûWHILEû+EURIGû$Rû0EPPERûISûUPûTOûXûONû
AûPROûFORMAûBASIS ûACCORDINGûTOû#REDIT3IGHTS
Constellation approached investors with
SEVEN ûûANDû
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RATEûBONDS ûASû
WELLûASûAûTHREE
YEARûNON
CALLûONEûmOATER
4HEûDEAL ûRATEDû"AA""" ûPRICEDûTIGHTERû
than initial price thoughts of three-month
,IBORûPLUSûBPûAREAûONûTHEû&2. û4REASURIESû
PLUSûBPûAREAûONûTHEûSEVEN
YEAR ûBPû
area on the 10-year and 205bp area on the
YEAR
#ONSTELLATIONûPRICEDûAû53MûmOATERûATû
BP ûAû53MûSEVEN
YEARûATûBP ûAû
53Mû
YEARûATûBPûANDûAû53Mû
YEARûATûBP
!CTIVEûBOOKRUNNERSûWEREûGoldman Sachs û
Bank of America Merrill Lynch and JP Morgan
h7HATûWEûSEEûWITHûTHESEûDEALSûRECENTLYûISû
THATû)04ûENDSûUPûBEINGûABOUTûBPûWIDEû&ORû
EXAMPLE ûLASTûWEEKûWITHû#ONAGRAû"RANDSûWEû
SAWûABOUTûBPûOFûTIGHTENINGûFROMû)04 vû
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The investment in Canopy was
ANNOUNCEDûINû!UGUSTûANDûISûTHEûLARGESTûPLAYû
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#ANADASûGROWINGûCANNABISûMARKET ûWHICHû
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#OLAûISûEYEINGûDRINKSûINFUSEDûWITHû#"$ ûTHEû
non-psychoactive ingredient in marijuana
LEGALûINûTHEû53FORD EARNINGS CALL UNNERVES BOND
INVESTORS: REPORTFORD did little to ease investor worries about
a return to junk territory on its latest
EARNINGSûCALL ûACCORDINGûTOûTHEûINDEPENDENTû
RESEARCHûCOMPANYû#REDIT3IGHTSCFO Robert Shanks appeared to shrug off
concerns about another trip into junk for
THEûICONICû53ûCARMAKER ûWHICHûREGAINEDûITSû
investment-grade rating in 2012 after six
YEARS
“From a credit standpoint we feel even
LESSûCOMFORTABLEûAFTERûTHEû1ûCALL vû
#REDIT3IGHTSûSAID
)TûCALLEDûHISûPERFORMANCEûhLONG
WINDEDvû
ANDûhLESSûTHANûCONVINCINGvûAFTERû3HANKSû
expressed “unwillingness to categorically
AFlRMûTHEûIMPORTANCEûOFûREMAININGû
INVESTMENTûGRADEv
Shanks said the automaker was
committed to its dividend payout and did
not provide a timeline or cost breakdown of
&ORDSû53BNûRESTRUCTURINGûPLAN
7HILEûTHEREûWEREûNOûBIGûNEGATIVEû
SURPRISESûINûTHEûCOMPANYSûEARNINGS ûANDû
&ORDûBEATû.ORTHû!MERICANûEXPECTATIONS ûTHATû
WASûLARGELYûOFFSETûBYûNEGATIVESûINû!SIAûANDû
%UROPE
CreditSights said it believes Ford could be
downgraded to high-yield within the next
FOURûQUARTERSû4HEûCOMPANYûHOLDSûSOMEû
53BNûOFûDEBT ûACCORDINGûTOû)#%û"!-,û
DATA
%VENûSO û&ORDSûBONDSûWEREûMOSTLYûTIGHTERû
INû4HURSDAYûTRADE ûACCORDINGûTOû-ARKET!XESSû
DATA
“It’s very clear in talking with the rating
AGENCIESûTHAT ûEVENûIFûWEûSTOPPEDûPAYINGûAû
DIVIDEND ûTHATûDOESNTûADDRESSûTHEûOPERATINGû
PERFORMANCE vû3HANKSûSAIDûONûTHEûCALL
“So we’re extremely focused around the
%BITûMARGIN ûRETURNûONûINVESTEDûCAPITALû7Eû
are extremely focused on getting this
business back on to a stronger operating
performance track because that is the issue
that the rating agencies are expressing
CONCERNûAROUNDv
-OODYSûDOWNGRADEDû&ORDûTOûONEûNOTCHû
ABOVEûJUNK û"AA ûWITHûAûNEGATIVEûOUTLOOKûINû
!UGUSTû30ûKEPTûTHEûAUTOMAKERûATûAûMID
Triple B rating but shifted its outlook to
NEGATIVEûINû*ULYBONDS CORPORATESALL INVESTMENT-GRADE BONDS IN EUROS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)
1 BNP Paribas 213 53,368.49 7.1
2 SG 195 49,808.10 6.7
3 HSBC 230 48,843.26 6.5
4 JP Morgan 160 45,554.11 6.1
5 Credit Agricole 182 44,197.78 5.9
6 Deutsche Bank 177 41,147.34 5.5
7 Barclays 133 40,426.11 5.4
8 UniCredit 171 38,782.52 5.2
9 Goldman Sachs 92 32,396.34 4.3
10 Citigroup 125 30,717.86 4.1
Total 1,066 747,540.92
Excluding ABS/MBS, equity-related debt.
Source: Refinitiv SDC code: N9
ALL CORPORATE BONDS IN STERLING
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues £(m) (%)
1 HSBC 16 1,961.64 14.6
2 Barclays 15 1,711.77 12.7
3 RBC 9 1,354.74 10.1
4 Lloyds Bank 13 1,141.78 8.5
5 NatWest Markets 12 955.46 7.1
6 BNP Paribas 10 691.28 5.1
7 Credit Suisse 6 586.72 4.4
8 Citigroup 6 573.55 4.3
9 Morgan Stanley 4 538.57 4.0
10 Deutsche Bank 5 482.61 3.6
Total 45 13,450.40Source: Refinitiv SDC code: N8aALL SWISS FRANC BONDS EXCLUDING
SECURITISATIONS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues SFr(m) (%)
1 Credit Suisse 115 12,030.84 28.6
2 UBS 103 11,759.68 27.9
3 ZKB 47 4,592.18 10.9
4 Verband Schweizerischer 12 4,259.71 10.1
5 Raiffeisen Schweiz 33 2,688.53 6.4
6 Deutsche Bank 13 1,571.19 3.7
7 BNP Paribas 16 1,562.78 3.7
8 Commerzbank 10 799.34 1.9
9 HSBC 7 735.63 1.7
10 Basler KB 3 341.92 0.8
Total 204 42,086.83
Including preferreds. Excluding equity-related debt.
Source: Refinitiv SDC code: K06b