Transaction Highlights. Quarterly compilation of syndicated loan and debt capital market transactions in the Netherlands Q4 2014

Size: px

Start display at page:

Download "Transaction Highlights. Quarterly compilation of syndicated loan and debt capital market transactions in the Netherlands Q4 2014"

Alyson Harper
6 years ago
Views:

1 Transaction Highlights Quarterly compilation of syndicated loan and debt capital market transactions in the Netherlands Q4 4

2 Summary of key market observations Commentary Benchmark yields and credit spreads M EURIBOR remains at unprecedented levels;.% (!) by the end of Q4. Credit spreads for Industrials and Financials are stabilizing around bottom lows. Benchmark yields in Eurozone dropping further to new record lows, in anticipation of QE by ECB. Syndicated loan market Q4 syndicated loan volume in the Netherlands down compared to Q and Q but for the third consecutive quarter above EUR bn, thereby further offsetting the slow start of Q 4. The breakdown of Q4 transactions shows that in Q4 volume is largely driven by medium sized (EUR -,m) deals. out of transactions are used to refinance debt. Equal to Q, Q4 shows a strong appetite for deals with a long tenor (Y+), i.e. maturities of and longer. Debt capital market DCM activity for Dutch issuers slightly improves. Deal volume remains just below EUR.bn. The eurozone DCM deal volume dropped slightly. Interesting to note is that more than percent of the transactions were not rated. NL league tables Volume of bank market nearly doubled compared to. Interesting to note are the prominent positions of Bank of America ML, JP Morgan and Morgan Stanley, which are mainly attributable to EUR 7.bn Douwe Egberts transaction which was fully underwritten by these three banks. The other banks in the top include the usual suspects being the Dutch banks, Deutsche and BNP and furthermore also HSBC and Credit Suisse. 4 Debt Capital Market 4 volume is only a third of the total volume.

3 Benchmark yields and credit spreads. Development EONIA versus -month Euribor EONIA bps European Industrials and Financials -year credit spreads Financials BBB M EURIBOR remains at unprecedented levels;.% by the end of Q4. Credit spreads for Industrials and Financials are stabilizing around bottom lows. Benchmark yields in Eurozone dropping further to new record lows, in anticipation of QE by ECB. As yields on US bonds remained broadly stable the gap between US yields and German Bund yields has widened further..%.%.%.4%. 4..%.4%.%.% / /4 7/4 4/4 /4 / 7/ 4/ / / 7/ 4/ / / 7/ 4/ Development of, and -year swap rates.4% M Euribor.% year.% year.% year.% 4 bps bps bps bps bps 4..%.4%.%.% / 4/ 7/ / / 4/ 7/ / / 4/ 7/ / /4 4/4 7/4 Yield development -year sovereign bonds /4 bps Industrials BBB 4 bps Financials A bps Industrial A bps United States.7% Netherlands.7% Germany.4%. / 4/ 7/ / / 4/ 7/ / / 4/ 7/ / /4 4/4 7/4 /4. / 4/ 7/ / / 4/ 7/ / / 4/ 7/ / /4 4/4 7/4 /4 Source: Bloomberg (all data until January ) The European Industrials and Financials Bloomberg indices are populated with noted EUR currency denominated fixed-rated bonds. Spreads are above yr EUR swap rate

4 Syndicated loan market in the Netherlands and the eurozone The Netherlands Eurozone Transaction volume (EURbn) and no. transactions (#) Transaction volume (EURbn) and no. transactions (#) Q4 syndicated loan volume in the Netherlands down compared to Q and Q but for the third consecutive quarter above EUR bn, thereby further offsetting the slow start of Q 4. Vol. : EUR 47.bn : EUR.bn : EUR.bn 4: EUR 44.bn 4 Vol. 4 : EUR.bn : EUR.bn : EUR.bn 4: EUR 4.bn 4 The breakdown of Q4 transactions shows that in Q4 volume is largely driven by medium sized (EUR -,m) deals. 4Q4 4Q 4Q 4Q Q4 Q Q Q Q4 Q Q Q Q4 Q Q Q 4Q4 4Q 4Q 4Q Q4 Q Q Q Q4 Q Q Q Q4 Q Q Q Transaction volume (left axis) Number of transactions (right axis) Transaction volume (left axis) Number of transactions (right axis) Eurozone figures show a strong decrease in both number of deals and deal volume in Q and Q4 compared to strong Q, despite ongoing positive market circumstances. Breakdown no. transactions (#) based on deal size 4 7 Breakdown no. transactions (#) based on deal size % 4 % % % Q Q Q Q4 Q Q Q Q4 Q Q Q Q4 4Q 4Q 4Q 4Q4 Q Q Q Q4 Q Q Q Q4 Q Q Q Q4 4Q 4Q 4Q 4Q4 < m -,m >,m < m -,m >,m 4 Source: Bloomberg, OFC analysis. These analyses are based on publicly available information on Bloomberg with respect to the syndicated loan market of entities incorporated in the relevant markets

5 Q4 4 syndicated loan transactions in the Netherlands a selection out of transactions are used to refinance debt. Equal to Q, Q4 shows a strong appetite for deals with a long tenor (Y+), i.e. maturities of and longer. The Vopak deal, with the maturity of years, relates to a project financing agreement for a LNG break bulk facility in the port of Rotterdam. The syndicated loan of Vopak is part of a total deal with the EIB and 4 banks, with a total deal size of EUR 7m and a maturity of years. This deal is signed by Gate terminal, a shared subsidiary with GasUnie. Date Company Type Currency Size Maturity Sector Purpose Rank Pricing 4 Dec GISA NETHERLANDS BV Rev USD Undisclosed Metal Fabricate/Hardware Refinance debt Unsecured Undisclosed Dec TOMTOM NV Rev EUR Software Refinance debt Unsecured Undisclosed Dec ACTION NEDERLAND BV RCF EUR 4 Retail Recapitalization Secured EURIBOR+47 Dec SBM OFFSHORE NV Rev USD, Oil & Gas Services Refinance debt Unsecured Undisclosed Dec MEDIARENA ACQUISITION BV TL EUR Media LBO Secured EURIBOR+ Dec QIAGEN NV Rev EUR 4 Healthcare-Products Gen corp. purposes Unsecured EURIBOR+ Nov GUNVOR INTERNATIONAL BV Rev USD, 7 Distribution/Wholesale Refinance debt Unsecured Undisclosed Nov CNH INDUSTRIAL NV Rev EUR,7 Machinery-Diversified Refinance debt Unsecured Undisclosed Nov RABEN GROUP NV RCF EUR Transportation Refinance debt Unsecured Undisclosed 4 Nov MACINTOSH RETAIL GROUP NV RCF EUR 4 Retail Refinance debt Secured Undisclosed 4 Nov TNT FINANCE BV Rev EUR Transportation Refinance debt Unsecured Undisclosed Oct HERTZ HOLDGS NETHERLANDS Rev EUR 4 7 Commercial Services Gen corp. purposes Unsecured Undisclosed Oct KONINKLIJKE TEN CATE NV Rev EUR Miscellaneous manufactur. Refinance debt Unsecured Undisclosed Oct FORFARMERS BV Rev EUR Agriculture Refinance debt Unsecured Undisclosed 4 Oct TRADIN ORGANIC AGRICULTURE RCF EUR Undisclosed Food Working capital Secured EURIBOR+7 4 Oct UNIT4 NV RCF EUR Software LBO Secured EURIBOR+4 Oct AIRBUS GROUP Rev EUR, Aerospace / Defense Refinance debt Unsecured EURIBOR+7. Oct KONINKLIJKE VOPAK NV TL EUR Pipelines Project finance Secured Undisclosed

6 Debt capital market in the Netherlands and the eurozone The Netherlands Transaction volume (EURbn) and no. transactions (#) Eurozone Transaction volume (EURbn) and no. transactions (#) DCM activity for Dutch issuers slightly improves. Deal volume increases but remains just below EUR.bn. Number of transactions increased to equalize the number of Q. The eurozone DCM deal volume dropped slightly. Vol. : EUR.bn : EUR 4.bn : EUR.bn 4: EUR 4.bn Vol. : EUR.4bn : EUR.bn : EUR 4.bn 4: EUR 4.bn 4 4Q4 4Q 4Q 4Q Q4 Q Q Q Q4 Q Q Q Q4 Q Q Q Transaction volume (left axis) Number of transactions (right axis) Transaction volume (left axis) Number of transactions (right axis) 4 4Q4 4Q 4Q 4Q Q4 Q Q Q Q4 Q Q Q Q4 Q Q Q Please not that more than percent of the eurozone transactions were not rated. % Breakdown no. transactions (#) based on credit rating % % Breakdown no. transactions (#) based on credit rating % 4Q4 4Q 4Q 4Q Q4 Q Q Q Q4 Q Q Q Q4 Q Q Q 4Q4 4Q 4Q 4Q Q4 Q Q Q Q4 Q Q Q Q4 Q Q Q Investment grade Sub-investment grade Not rated Investment grade Sub-investment grade Not rated Source: Bloomberg, OFC analysis.these analyses are based on publicly available information on Bloomberg with respect to the debt capital market of entities with the relevant countries as countries of risk

7 Debt capital market transactions of Dutch issuers in 4 Two rated transactions by Constellium, both maturing in. The transactions by Constellium follow two transactions by Constellium in Q. A perpetual issue by Eneco of EUR bn. (@.%) at a spread of 7. bps above mid-swap. A year transaction by Akzo Nobel (@.) with a spread of 7. bps above midswap. Date Company Credit rating Currency Size Maturity Sector Type Coupon Spread* 4Q4 Dec Constellium NV B / NR USD 4 Packaging & Containers Private placement / 44A. Undisclosed Dec Constellium NV B / NR EUR 4 Packaging & Containers REGS 7. Undisclosed Dec Fruit Farm Group B.V. NR / NR EUR Agriculture Undisclosed.7 Undisclosed 4 Nov Eneco Holding NV NR / BBB EUR Perpetual Electric Undisclosed. 7. bps Oct Akzo Nobel NV Baa / BBB+ EUR 4 Chemicals EMTN.7 7. bps 7 Oct Sensata Technologies BV Ba / BB+ EUR.7 4 Semiconductors Private Placement / 44A. Undisclosed 4Q Sep Gemalto NV NR / NR EUR 4 Technology EMTN. 4. bps Jul TMF group Holding BV B EUR 4 Consumer, Non-cyclical EMTN. Undisclosed Jul TMF group Holding BV CCC+ EUR Consumer, Non-cyclical EMTN.7 Undisclosed 4Q Jun Metalcorp Group BV NR / NR EUR Basic Materials Undisclosed.7 Undisclosed May WoltersKluwer NV NR / BBB+ EUR 4 4 Communications Undisclosed. 7. bps Apr Constellium NV Ba / BB- USD 4 4 Basic Materials Private placement / 44A.7 Undisclosed Apr Constellium NV Ba / BB- EUR Basic Materials EMTN 4. Undisclosed Apr Schiphol Nederland BV A / A+ EUR Industrial EMTN Floating Undisclosed Apr Interxion Holding NV B / B+ EUR 47 Technology Undisclosed. Undisclosed 4Q Mar Schiphol Nederland BV NR / NR EUR 4 Industrial EMTN Floating Undisclosed 4 Mar Heineken NV Baa / NR USD Consumer, Non-cyclical EMTN Floating Undisclosed 7 Feb Koninklijke DSM NV NR / A EUR 4 Basic Materials EMTN.7. bps Feb Unilever NV A / A+ CNY 7 Consumer, Non-cyclical Undisclosed. Undisclosed 4 Feb Playa Resorts Holdings Caa / B- USD 7 Consumer, Cyclical Private placement / 44A. Undisclosed Feb Norshore Atlantic BV NR / NR USD Energy Undisclosed. Undisclosed Jan Heineken NV Baa / BBB+ EUR Consumer, Non-cyclical EMTN. Undisclosed 7 Source: Bloomberg. Table is based on publicly available information on Bloomberg with respect to the debt capital market of entities with the Netherlands as country of risk *Spread is at close and above Mid Swaps

8 Dutch syndicated loan and debt capital markets league tables Volume of bank market nearly doubled compared to. Rank YTD Syndicated loan league table (based on volume in EURm) Bank Bank of America Merrill Lynch 4 Vol. No. Mrkt % Vol. No. Mrkt %,4.,. JP Morgan, 4.. Rank YTD Debt capital market league table (based on volume in EURm) Bank 4 Vol. No. Mrkt % Vol. No. Mrkt % Deutsche Bank AG 7,. Citi Interesting to note are the prominent positions of Bank of America ML, JP Morgan and Morgan Stanley, which are mainly attributable to EUR 7.bn Douwe Egberts transaction which was fully underwritten by these three banks. 4 7 ING Groep NV, 44 7., 4. Rabobank Nederland,., 7. Morgan Stanley, Deutsche Bank AG, 7,7 4. BNP Paribas SA,4.,. ABN Amro Bank NV,7 4.,4. HSBC Bank PLC,7 4.4,7. Credit Suisse,4.. Barclays,. 7. Credit Agricole CIB, Goldman Sachs & Co 47 7,.4 ING Groep NV JP Morgan 7.,4. Barclays 7.,.4 Bank of America Merrill Lynch BNP Paribas SA Societe Generale HSBC Bank PLC Natixis RBS 4., The other banks in the top include the usual suspects being the Dutch banks, Deutsche and BNP and furthermore also HSBC and Credit Suisse. 4 7 RBS,4., Societe Generale Mitsubishi UFJ Financial Citi 7.. Commerzbank AG Natixis Mizuho Financial Group Inc 7.. Morgan Stanley. 4. RBC Capital Markets 7.7. ABN Amro Bank NV. 7. KBC Group NV Arctic Securities Goldman Sachs & Co ABG Sundal Collier Asa volume of debt capital is only a third of the volume. ING is the first Dutch bank, ranked rd, in the DCM league table. Top Top Total Lloyds Bank PLC.. 7,..74.4,4., ,4,47 Top Top Total IKB Deutsche Industriebank ,77 4,4 4,4, 77. 7,.., 7.7 Source: Bloomberg, OFC analysis. League tables are based on publicly available information on Bloomberg with respect to the syndicated loan market of entities incorporated in the Netherlands and with respect to the debt capital market of entities with the Netherlands as country of risk

About Orchard Finance Orchard Finance Recent assignments Orchard Finance is a leading Dutch consultancy company in the areas of Finance and Treasury.

9 About Orchard Finance Orchard Finance Recent assignments Orchard Finance is a leading Dutch consultancy company in the areas of Finance and Treasury. We are fully independent financial professionals since the start of the company in. Orchard Finance supplies consultancy, project management, interim operational support and education. Our professionals have a long standing reputation based on operational and project experience in banking, corporate finance and treasury. 4 Advise on refinancing group credit facilities 4 Coordination of refinancing group credit facilities Orchard Finance's clients range from international corporates and financial institutions to (semi-) public organizations. Orchard Finance has strong contacts and reputation throughout financial markets ranging from banks, asset finance and capital markets. 4 New financing agreement and interest hedging 4 Advice on financing structure and coordination of refinancing of group credit facilities Our Finance team Our debt advisory services cover among others: Financing and dividend policy Funding strategy and bank relationship management Financial modelling Bank finance Acquisition and leveraged finance Debt capital markets and credit ratings Asset finance, factoring, securitization and leasing 4 Supply chain finance, advise and support in program design and tender process - 4 Various finance and treasury assignments and interim staffing

Orchard Finance Corner Plaza B th floor Planetenbaan AK Maarssen Tel: + ()4 7 4 Fax: + ()4 7 4 E-mail: info@orchardfinance.com www.orchardfinance.com Your Finance team contacts Rolf Michon Managing Partner rolf.

com with feedback and editorial suggestions. Nicolai Knop Partner Finance nicolai.knop@orchardfinance.com Martijn Bos Consultant Finance martijn.bos@orchardfinance.

This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by Orchard Finance Consultants.

10 Orchard Finance Consultants How to subscribe? Transaction Highlights is published for OFC clients and select professionals. To receive a copy of Transaction Highlights, please send an to BusinessSupport@ orchardfinance.com and request inclusion in our distribution list. Orchard Finance Corner Plaza B th floor Planetenbaan AK Maarssen Tel: + ()4 7 4 Fax: + () info@orchardfinance.com Your Finance team contacts Rolf Michon Managing Partner rolf.michon@orchardfinance.com Alwin de Haas Partner Finance and Capital Markets alwin.dehaas@orchardfinance.com Submit feedback Please contact us at BusinessSupport@ orchardfinance.com with feedback and editorial suggestions. Nicolai Knop Partner Finance nicolai.knop@orchardfinance.com Martijn Bos Consultant Finance martijn.bos@orchardfinance.com This presentation was prepared specifically for contacts of Orchard Finance Consultants, and does not carry any right of publication or disclosure. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by Orchard Finance Consultants. Neither this presentation nor any of its contents may be used by any other party without the express consent of Orchard Finance Consultants. Although the information contained in this presentation has been obtained from public and private sources which Orchard Finance Consultants believes to be reliable, it has not been verified independently. Accordingly, no representation or warranty, express or implied, is made and no responsibility is or will be accepted by Orchard Finance Consultants as to or in relation to the accuracy, reliability or completeness of any such information. Orchard Finance Consultants B.V.

466 deals $2.1bn $16.3bn

466 deals $2.1bn $16.3bn UK Investment Banking Review First Quarter 216 UK investment banking revenue in 1Q 216 totaled $1.bn, down 21% year-on-year. Deal volume from UK targeted M&A dropped 34% year-on-year to $49.3bn. The same