DEALS INTELLIGENCE I DECEMBER 12, 2013
INVESTMENT BANKING SCORECARD Investment Banking Volume by Asset Class
Equity Capital Markets by Issue Type
$1,400
Loans
ECM
Debt
2013ytd
M&A
$1,200
2012ytd $0
$1,000
$100
$200
$300
$400
$500
$600
$700
$800
Volume ($b)
Volume ($b) Follow-On
$800
IPO
Convertible
Debt Capital Markets by Issue Type $600
2013ytd $400
2012ytd $0
$200
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Volume ($b)
$0 N
D
J13
F
M
A
M
J
J
A
S
O
N
Investment Grade Corporate
D
Agency, Supranational, Sovereign
Federal Credit Agency
MBS
High Yield Corporate
ABS
Emerging Market Corporate
Weekly Headlines Best Year for US IPO Listing s since 2000
Worldwide Consumer Staples M&A Falls 30%
Canadian Acquisitions of US Companies Up 8%
This week's $2.4 billion IPO for Hilton Worldwide Holdings, which ranks as the third largest US listing this year after Plains GP Holdings ($2.9 billion) and Zoetis ($2.6 billion), pushed the dollar volume of US listed IPOs to $57.8 billion, a 38% increase compared to a year ago and the strongest year for US IPOs, by dollars, since 2000. Energy & power, healthcare, technology and real estate offerings account for 55% of overall activity so far this year, down from a combined 74% during year-to-date 2012.
Sysco Corp's $8.2 billion bid for US Foods Inc brings the volume of worldwide deal making in the consumer staples sector to $130.3 billion, a 30% decline compared to this time last year and the slowest period for M&A in the sectors in two years. Food and beverage M&A accounts for nearly two-thirds of activity in the consumer staples space this year and has decline 41% compared to a year ago. Deal making in the household and personal products space has nearly doubled compared to year-to-date 2012 and accounts for 10% of activity this year.
Newfoundland-based electric and natural gas utility Fortis Inc's $4.3 billion purchase of Arizona's UNS Energy Corp takes the volume of Canadian acquisitions of US companies to $31.1 billion for year-to-date 2013, an 8% increase compared to a year ago and the strongest year-to-date period for activity since 2007 ($58.2 billion). Overall Canada outbound crossborder M&A totals $48.4 billion this year, a decline of 14% compared to last year. US targets account for 64% of all outbound purchases by Canadian companies, bolstered by the activity in the retail, energy & power and real estate sectors.
Bank of America Merrill Lynch leads the ranking of US listed IPO bookrunners with 12.5% market share, a 2.7 point increase compared to last year at this time. Credit Suisse, the top US IPO bookrunner at this time last year has fallen to eighth place, a decline of 3.5 market share points from 2012.
Consumer Staples M&A activity in the United States, China and Netherlands accounts for 60% of the overall tally, up from 50% last year at this time. JP Morgan, Lazard and Bank of America Merrill Lynch lead the advisory league tables in the sector this year.
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RBC Capital Markets, Credit Suisse and Deutsche Bank lead the year-to-date advisory rankings for Canada's outbound purchases in the United States this year.
DEALS INTELLIGENCE I DECEMBER 12, 2013
LEAGUE TABLES Global Announced Mergers and Acquisitions (AD1)
Advisor Goldman Sachs & Co JP Morgan Morgan Stanley Bank of America Merrill Lynch Barclays UBS Citi Deutsche Bank Credit Suisse Lazard Industry Total
Year-to-Date Volume Mkt. US$m Rank Share 601,546.2 1 26.7 542,593.3 2 24.1 516,039.3 3 22.9 503,309.1 4 22.3 349,035.7 5 15.5 294,554.1 6 13.1 245,913.8 7 10.9 242,091.5 8 10.7 207,465.9 9 9.2 177,991.5 10 7.9 2,256,155.8 100.0
Global Equity and Equity-related (C1)
No. Deals 379 278 293 217 184 182 213 181 222 235 33,911
YTD Last Yr Mkt. Rank Share 1 29.3 3 21.4 2 21.5 8 12.9 4 19.1 9 8.8 5 16.1 7 15.7 6 16.1 11 7.5 100.0
Chg. in Mkt. Share (2.6) ▼ 2.7 ▲ 1.4 ▲ 9.4 ▲ (3.6) ▼ 4.3 ▲ (5.2) ▼ (5.0) ▼ (6.9) ▼ 0.4 ▲
Bookrunner Goldman Sachs & Co JP Morgan Morgan Stanley Bank of America Merrill Lynch Citi Deutsche Bank UBS Credit Suisse Barclays Nomura Top Ten Total Industry Total
Global Debt (B1)
Bookrunner JP Morgan Deutsche Bank Barclays Citi Bank of America Merrill Lynch Morgan Stanley Goldman Sachs & Co HSBC Holdings PLC Credit Suisse BNP Paribas SA Top Ten Total Industry Total
Year-to-Date Proceeds Mkt. US$m Rank Share 87,788.5 1 11.6 64,707.1 2 8.5 58,076.7 3 7.6 54,422.9 4 7.2 49,708.1 5 6.5 46,888.5 6 6.2 45,370.7 7 6.0 38,715.5 8 5.1 35,706.0 9 4.7 15,890.8 10 2.1 497,274.8 65.5 760,202.0 100.0
No. Deals 400 442 415 406 365 341 303 328 264 119 4,136
YTD Last Yr Mkt. Rank Share 1 8.8 4 7.9 2 8.2 5 7.4 3 8.2 6 6.3 8 5.8 7 5.9 9 5.1 11 1.6 65.2 100.0
Chg. in Mkt. Share 2.8 ▲ 0.6 ▲ (0.6) ▼ (0.2) ▼ (1.7) ▼ (0.1) ▼ 0.2 ▲ (0.8) ▼ (0.4) ▼ 0.5 ▲ 0.3 ▲
YTD Last Yr Mkt. Rank Share 1 12.0 2 9.9 3 7.4 4 5.4 6 4.4 7 3.7 9 2.9 5 4.8 12 2.2 10 2.4 55.1 100.0
Chg. in Mkt. Share (0.7) ▼ 0.3 ▲ (1.2) ▼ 0.1 ▲ (0.3) ▼ 0.3 ▲ 0.8 ▲ (1.2) ▼ 0.5 ▲ 0.2 ▲ (1.2) ▼
Global Syndicated Loans (R1) Year-to-Date Proceeds Mkt. US$m Rank Share 414,606.3 1 7.6 372,311.2 2 6.8 343,199.7 3 6.3 325,943.3 4 6.0 295,686.2 5 5.4 283,033.3 6 5.2 279,658.0 7 5.1 240,302.3 8 4.4 210,722.2 9 3.9 200,990.4 10 3.7 2,966,452.9 54.4 5,442,131.6 100.0
No. Deals 1,560 1,507 1,196 1,267 1,341 1,229 930 1,244 865 788 14,335
YTD Last Yr Mkt. Rank Share 1 8.1 2 6.9 3 6.6 4 5.9 5 5.4 6 5.0 7 4.4 8 4.2 9 4.0 10 3.5 54.0 100.0
Chg. in Mkt. Share (0.5) ▼ (0.1) ▼ (0.3) ▼ 0.1 ▲ 0.0 ▲ 0.2 ▲ 0.7 ▲ 0.2 ▲ (0.1) ▼ 0.2 ▲ 0.4 ▲
Bookrunner JP Morgan Bank of America Merrill Lynch Citi Wells Fargo & Co Mitsubishi UFJ Financial Group Barclays Deutsche Bank Mizuho Financial Group RBC Capital Markets BNP Paribas SA Top Ten Total Industry Total Source: Thomson Reuters LPC
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Year-to-Date Proceeds Mkt. US$m Rank Share 364,788.0 1 11.3 330,236.8 2 10.2 199,418.8 3 6.2 176,964.0 4 5.5 133,314.5 5 4.1 130,699.0 6 4.0 119,752.2 7 3.7 117,659.5 8 3.6 87,073.1 9 2.7 85,408.7 10 2.6 1,745,314.6 53.9 3,241,400.5 100.0
No. Deals 1,200 1,278 566 867 872 421 460 595 351 315 7,115
DEALS INTELLIGENCE I DECEMBER 12, 2013
REGIONAL DEALS MATRIX CROSS-BORDER M&A (by Target Nation)
ALL M&A
M&A
Target Region/Nation Worldwide Americas United States Brazil Africa Middle East Europe United Kingdom Germany Italy Spain France Russia Asia (ex. Japan) Australia China India Japan BRIC
YTD Volume (US$b) 2,256.2 1,164.5 978.3 51.2 41.4 22.8 522.5 86.4 90.8 25.6 21.0 42.9 51.6 417.8 73.6 191.4 18.4 74.5 312.5
Issuer Region/Nation Worldwide Americas United States Brazil Africa Middle East Europe United Kingdom Germany Italy Spain France Russia Asia (ex. Japan) Australia China India Japan BRIC
YTD Proceeds (US$b) 5,442.1 2,319.9 1,884.7 40.9 19.5 39.6 2,046.0 228.2 378.6 163.7 136.1 279.9 72.8 759.3 157.4 304.3 50.2 245.3 468.2
Deals 33,912 11,042 8,173 510 513 432 11,418 1,967 1,173 448 656 1,318 1,661 8,503 1,195 3,252 764 1,947 6,187
% Change YoY -3% ▼ 3% ▲ 12% ▲ -9% ▼ 40% ▲ -4% ▼ -23% ▼ -34% ▼ 47% ▲ -10% ▼ -47% ▼ 42% ▲ -52% ▼ 9% ▲ 16% ▲ 33% ▲ -32% ▼ -8% ▼ -7% ▼
ALL DEBT CAPITAL MARKETS
DCM
Issues 14,335 6,099 5,137 95 45 75 3,688 331 782 135 215 479 193 3,384 319 1,370 488 1,030 2,146
% Change YoY -2% ▼ -3% ▼ -6% ▼ -24% ▼ 60% ▲ -11% ▼ -3% ▼ -21% ▼ -10% ▼ 44% ▲ 5% ▲ -1% ▼ -3% ▼ 1% ▲ -3% ▼ 34% ▲ -17% ▼ -7% ▼ 13% ▲
YTD Volume (US$b) 693.6 220.8 142.6 21.1 40.8 5.5 288.1 48.7 61.3 10.2 12.7 12.7 9.0 127.9 29.4 33.8 13.5 16.0 77.4
Deals % Change YoY 9,222 -19% ▼ 2,331 -31% ▼ 1,179 -23% ▼ 246 -19% ▼ 448 20% ▲ 153 -65% ▼ 4,069 -17% ▼ 712 -48% ▼ 487 71% ▲ 201 62% ▲ 231 59% ▲ 290 -26% ▼ 340 -59% ▼ 2,272 -10% ▼ 442 -19% ▼ 590 -4% ▼ 253 -6% ▼ 102 8% ▲ 1,429 -21% ▼
SECURITIZATIONS YTD Proceeds (US$b) 817.3 622.7 559.9 0.7 1.2 0.8 113.7 27.7 24.5 5.6 10.3 12.0 0.0 36.2 25.4 3.2 0.2 42.7 4.0
Issues % Change YoY 1,599 5% ▲ 1,126 11% ▲ 976 6% ▲ 1 3 0% ▲ 2 - 172 -14% ▼ 62 -35% ▼ 28 37% ▲ 7 - 13 - 15 - 0 - 60 38% ▲ 38 59% ▲ 8 - 4 435% ▲ 236 -24% ▼ 13 39% ▲
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STRATEGIC M&A YTD Volume (US$b) 1,923.6 960.9 791.0 46.5 39.7 22.2 425.7 66.3 68.7 18.9 16.8 37.2 51.4 394.1 69.8 183.1 16.0 68.5 296.9
Deals 29,418 9,171 6,588 430 455 377 9,692 1,639 981 355 568 906 1,618 7,928 1,105 3,100 640 1,742 5,788
PRIVATE EQUITY M&A % Change YoY -5% ▼ 0% ▲ 10% ▲ -13% ▼ 38% ▲ 5% ▲ -29% ▼ -35% ▼ 44% ▲ -25% ▼ -53% ▼ 47% ▲ -52% ▼ 11% ▲ 15% ▲ 38% ▲ -28% ▼ 2% ▲ -6% ▼
INVESTMENT GRADE CORPORATE DEBT YTD Proceeds (US$b) 2,668.1 867.9 743.8 28.2 4.4 28.7 910.9 106.6 137.5 63.0 65.9 187.0 48.0 529.7 99.0 289.7 48.8 142.6 414.6
Issues 6,923 1,097 856 75 11 60 1,940 168 314 92 80 339 151 2,325 238 1,328 476 530 2,030
% Change YoY -2% ▼ 12% ▲ 11% ▲ -38% ▼ 13% ▲ -16% ▼ -12% ▼ -31% ▼ 2% ▲ -10% ▼ -5% ▼ 2% ▲ -6% ▼ 6% ▲ -21% ▼ 46% ▲ -18% ▼ -4% ▼ 17% ▲
YTD Volume (US$b) 332.6 203.6 187.3 4.6 1.7 0.7 96.7 20.0 22.1 6.7 4.2 5.6 0.3 23.7 3.7 8.3 2.4 5.9 15.6
Deals 4,493 1,871 1,585 80 58 55 1,726 328 192 93 88 412 43 575 90 152 124 205 399
% Change YoY 15% ▲ 21% ▲ 23% ▲ 68% ▲ 111% ▲ -77% ▼ 29% ▲ -31% ▼ 58% ▲ 102% ▲ 4% ▲ 18% ▲ -82% ▼ -15% ▼ 26% ▲ -24% ▼ -50% ▼ -58% ▼ -21% ▼
HIGH YIELD CORPORATE DEBT YTD Proceeds (US$b) 462.3 283.1 269.0 0.0 5.1 139.8 35.0 19.6 17.4 11.4 20.3 24.7 3.0 11.2 9,596.0 11.2
Issues 855 555 520 0 9 216 54 28 27 19 32 71 10 32 4 32
% Change YoY 18% ▲ -6% ▼ -4% ▼ - - 103% ▲ 101% ▲ 69% ▲ 99% ▲ 355% ▲ 1544% ▲ 237% ▲ - 32% ▲ -3% 51% ▲ - - 32% ▲
DEALS INTELLIGENCE I DECEMBER 12, 2013
REGIONAL DEALS MATRIX ALL EQUITY CAPITAL MARKETS
ECM
Issuer Region/Nation Worldwide Americas United States Brazil Africa Middle East Europe United Kingdom Germany Italy Spain France Russia Asia (ex. Japan) Australia China India Japan BRIC
YTD Proceeds (US$b) 760.2 317.3 260.4 12.0 3.5 5.0 221.6 50.4 24.3 12.5 12.0 27.8 9.0 163.6 20.5 67.4 9.4 49.1 97.7
Issues % Change YoY 4,136 24% ▲ 1,276 11% ▲ 1,000 9% ▲ 25 72% ▲ 29 34 -28% ▼ 820 75% ▲ 288 170% ▲ 68 -5% ▼ 36 -11% ▼ 30 40% ▲ 65 136% ▲ 15 8% ▲ 1,713 2% ▲ 441 5% ▲ 303 20% ▲ 137 -29% ▼ 263 86% ▲ 480 16% ▲
ALL SYNDICATED LOANS
LOAN
Borrower Region/Nation Worldwide Americas United States Brazil Africa Middle East Europe United Kingdom Germany Italy Spain France Russia Asia (ex. Japan) Australia China India Japan BRIC Source: Thomson Reuters LPC
YTD Proceeds (US$b) 3,707.2 2,264.2 2,084.4 4.7 28.5 47.8 719.3 141.9 130.0 39.8 43.7 97.6 40.8 395.9 74.0 44.6 250.6 167.8
Issues % Change YoY 8,110 22% ▲ 4,002 31% ▲ 3,616 36% ▲ 14 -51% ▼ 52 -12% ▼ 69 27% ▲ 1,091 16% ▲ 243 28% ▲ 172 69% ▲ 61 19% ▲ 128 -50% ▼ 151 15% ▲ 34 81% ▲ 1,228 21% ▲ 158 12% 229 - 183 -20% ▼ 1,700 -12% ▼ 460 37% ▲
IPOs YTD Proceeds (US$b) 155.2 68.1 53.0 8.3 0.2 3.0 34.4 12.6 3.5 1.3 2.1 1.8 39.7 5.2 12.8 0.3 9.7 23.3
FOLLOW-ONS
Issues 786 216 192 9 4 16 134 45 6 4 11 3 355 32 63 39 60 114
% Change YoY 36% ▲ 45% ▲ 32% ▲ 298% ▲ - 43% ▲ 142% ▲ 251% ▲ 27% ▲ 484% ▲ - 539% ▲ - 7% ▲ 525% ▲ -38% ▼ 5% ▲ -24% ▼ 1% ▲
LEVERAGED LOANS YTD Proceeds (US$b) 1,406.0 1,142.5 1,117.5 5.3 185.0 42.5 39.0 8.4 20.2 4.7 44.0 5.2 4.1 -
Issues 3,051 2,594 2,536 12 304 78 48 18 46 11 155 14 21 10 -
4
% Change YoY 51% ▲ 55% ▲ 58% ▲ - -3% ▼ - 27% ▲ 37% ▲ 70% ▲ - -61% ▼ 38% ▲ -22% ▼ 13% ▲ -47% ▼ - -45% ▼ - - -
YTD Proceeds (US$b) 503.0 206.0 169.2 3.6 2.8 1.5 156.2 35.7 18.1 5.7 6.9 21.2 6.6 104.1 14.7 41.2 9.0 32.5 60.4
Issues 3,006 902 690 16 24 16 610 233 54 22 19 44 11 1,287 399 222 97 167 346
CONVERTIBLES % Change YoY 16% ▲ -5% ▼ -5% ▼ -25% ▼ -68% 72% 184% 38% -53% -16% 137% 9% -5% 1% 29% -28% 224% 9%
▼ ▲ ▲ ▲ ▼ ▼ ▲ ▲ ▼ ▲ ▲ ▼ ▲ ▲
YTD Proceeds (US$b) 101.9 43.2 38.2 0.5 31.0 2.1 5.0 4.5 600.0 19.8 0.5 13.4 0.0 6.9 13.4
Issues 344 158 118 1 2 76 10 8 10 11 10 1 71 10 18 1 36 18
% Change YoY 61% ▲ 86% ▲ 83% ▲ - - - 46% ▲ -17% ▼ -72% ▼ 258% ▲ 1732% ▲ 78% ▲ - 46% ▲ -88% ▼ 311% ▲ -95% ▼ 90% 217% ▲
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[email protected] EUROPE Lucille Quilter l +44 207 542 4372 l
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[email protected]
DEALS INTELLIGENCE I DECEMBER 12, 2013
INDUSTRY ANALYSIS AND TOP DEALS M&A Industry Consumer Prod/Svcs Energy and Power Financials Healthcare High Technology Industrials Materials Media and Entertainment Real Estate Retail Consumer Staples Telecommunications Government and Agencies
YTD Volume (US$b) 70.1 338.6 208.3 190.2 163.7 207.2 156.3 126.1 316.7 86.0 130.3 261.5
ECM
Deals % Change YoY 3,334 -5% ▼ 2,653 -24% ▼ 3,593 -27% ▼ 2,094 -9% ▼ 4,303 8% ▲ 4,854 -2% ▼ 3,477 -33% ▼ 2,451 17% ▲ 2,627 48% ▲ 1,688 -9% ▼ 2,175 -30% ▼ 626 130% ▲
YTD Volume (US$b) 39.5 99.6 151.6 39.3 64.3 84.9 54.3 35.4 101.8 28.5 35.0 21.8 -
DCM
Deals 235 447 484 431 503 485 512 157 473 150 168 82 -
% Change YoY 144% ▲ 7% ▲ -13% ▼ 48% ▲ 29% ▲ 47% ▲ 23% ▲ 131% ▲ 44% ▲ 30% ▲ 56% ▲ 14% ▲ -
YTD Volume (US$b) 71.2 425.9 2,520.0 81.7 104.2 287.8 160.6 72.3 99.3 76.5 125.5 193.4 1,206.0
Syndicated Loans
Deals 287 908 7,341 125 163 895 523 144 468 171 282 164 2,775
% Change YoY -14% ▼ -6% ▼ -9% ▼ -18% ▼ 51% ▲ 21% ▲ -19% ▼ -23% ▼ 15% ▲ 15% ▲ 12% ▲ 69% ▲ 1% ▲
YTD Volume (US$b) 210.9 658.7 487.0 186.5 265.2 494.0 343.8 181.7 219.4 207.4 217.2 215.5 20.1
Deals 613 1,139 979 396 497 1,355 763 451 758 490 479 144 79
Top Deals - Last Seven Days
M&A
Ann. Date 12/9/13 12/9/13 12/11/13
Target Name US Foods Inc BRE Properties Inc UNS Energy Corp
Target Nation United States United States United States
Deal Value ($mil) 8,185.0 6,374.0 4,269.1
DCM
Issue Date 12/10/13 12/9/13 12/11/13
Issuer Name Muskrat Falls/LTAFT Sprint Corp China Railway Constr Corp Ltd
Issuer Nation Canada Japan China
Proceeds ($mil) 2,501.5 2,500.0 2,470.7
Issue Type Investment Grade Corporate High Yield Corporate Investment Grade Corporate
ECM
Issue Date 12/11/13 12/11/13 12/10/13
Issuer Name Hilton Worldwide Holdings Inc Fortis Inc Power Grid Corp of India Ltd
Issuer Nation United States Canada India
Proceeds ($mil) 2,352.8 1,505.9 1,131.4
Issue Type IPO Convertible Follow-On
LOAN
Close Date 12/8/13 12/11/13 12/11/13
Issuer Name Shuanghui Intl Hldg Ltd Mitsubishi Corp Ajinomoto Co Inc
Issuer Nation China Japan Japan
Proceeds ($mil) 4,000.0 976.0 976.0
5
Acquiror Name Sysco Corp Essex Property Trust Inc Fortis Inc
Acquiror Nation United States United States Canada
% Change YoY 41% ▲ 12% ▲ 14% ▲ 16% ▲ 37% ▲ 17% ▲ 26% ▲ 14% ▲ 37% ▲ 46% ▲ -1% ▼ 92% ▲ -16% ▼