IFR Magazine

EMERGING MARKETS

China 50 Indonesia 51 South Korea 54 Hungary 54 Slovakia 55 Brazil 56 Colombia 57 Mexico 57

„ FRONT STORY AFRICA

Senegal slashes pricing on comeback trade

Sovereign reprices curve with first deal in more than three years
Economic outlook dependent on oil and gas projects due to go live in 2023

Any doubts that investors might have about 5.625%, others in the mid-5s, but given the sector grants and concessional loans to plug
SENEGAL’s economic or political outlook were amount of guesswork required it was ITSûLARGEûCURRENTûACCOUNTûDElCIT
trumped by an enticing yield on Wednesday impossible to pinpoint a level.
INûTHEûSOVEREIGN SûlRSTûDEALûSINCEû-ARCHû “External debt is also elevated and now
2018. 3ENEGALûHASûAû ûEUROûNOTEûWITHûAûlNALû stands at around 60% of GDP,” said Feuillade.
MATURITYûINû-ARCHû ûTHATûWASûBIDûATû “We therefore see the risk of private sector
Senegal (Ba3/B+; negative/stable) is a ûACCORDINGûTOû2ElNITIV participation in future debt relief efforts as
participant in the G20 Debt Service higher than for other West African
3USPENSIONû)NITIATIVEûANDûFACESûAûDIFlCULTû The curve of Ivory Coast (Ba3/NR/B+) was %CONOMICûANDû-ONETARYû5NIONûSOVEREIGNSû
future as it tries to recover from the Covid- another pricing reference point. Ivory Coast DESPITEûTHEû)NTERNATIONALû-ONETARYû&UNDû
19 pandemic. HASûAûEUROûNOTEûWITHûAûlNALûMATURITYûINû assessing the risk of debt distress as
January 2032 quoted at 4.64% and October moderate.”
Yet that didn’t stop investors from putting 2040s at about 6%.
in €4.25bn of orders that enabled the “We see the risk of private
sovereign to slash pricing on its €775 June Historically, Senegal has traded inside sector participation in future
2037 new issue by up to 62.5bp from initial Ivory Coast but after the latter refreshed debt relief efforts as higher
levels to come well inside fair value. its curve with a new issue in November than for other West African
their respective positions switched. Economic and Monetary Union
“There’s a pretty healthy bid for yield but This latest deal, however, repriced sovereigns...”
also the name has been absent for some Senegal’s curve back to inside that of
time,” said a lead banker. Ivory Coast. The key to which view proves correct lies
with the country’s oil and gas projects,
Leads Citigroup, Societe Generale and Benin (B1/B+/B), too, was considered by which are expected to go live in 2023.
Standard Chartered began marketing the some accounts. It has January 2032s trading
amortiser, with a 15-year weighted average just inside 5% and January 2052s in the These projects are the reason why, while
life, at 5.875%–6%. But with the book mid-6s. the GDP growth rate is forecast to be 3.7% in
reaching in excess of €3.5bn by the US open, ûACCORDINGûTOûTHEû)-&ûANDûTHEû
pricing was revised to 5.5%–5.625%. Leads said the lack of overall supply from government, the pace is forecast to
Africa this year helped stir demand as did a accelerate thereafter.
That didn’t stop more orders coming in, tender offer on the sovereign’s US$500m
THOUGH ûENABLINGûTHEûLEADSûTOûSETûAûlNALû 6.25% 2024s. If it does, it should help Senegal bring
yield of 5.375%. DOWNûITSûlSCALûDElCIT û4HEûGOVERNMENTûISû
“The liability management [exercise] on committed to achieving the West African
Investors had expected a tightly priced the old bonds had people shifting into these %CONOMICûANDû-ONETARYû5NIONûTARGETû
bond but not that tight. so there was a natural anchor bid,” said the BUDGETûDElCITûOFû ûOFûNOMINALû'$0û
lead. during the 2021–23 period following a
“The delegation, led by the DElCITûAMOUNTINGûTOû ûOFûNOMINALû
minister of finance, spent That bid followed into the aftermarket GDP in 2020 and expected to amount to
five days on calls addressing with the bond clearing at 100.90 on 5.4% in 2021.
the debt sustainability and Thursday, having priced at par.
economic outlook” The oil and gas projects will also be
However, leads said that the deal’s important in addressing employment
“I wouldn’t be surprised if this comes successful outcome went beyond opportunities, especially for its youth.
closer to 5.5% but 5.625% would be supply/demand imbalances or the tender Senegal experienced protests earlier this
preferred,” said one fund manager offer. year sparked by the arrest of opposition
after initial price thoughts had been leader Ousmane Sonko but motivated by
announced. “You can’t just put the success of the deal underlying problems around
down to technicals,” said Aymeric Arnaud, unemployment, inequality and corruption.
“It’s a story we like and already have HEADûOFû#%%-%!ûDEBTûCAPITALûMARKETSûATû
exposure in US dollar and euro- Societe Generale. “The delegation, led by the Sonko was arrested over a rape charge,
denominated debt and if valuations look MINISTERûOFûlNANCE ûSPENTûlVEûDAYSûONûCALLSû which he denies and says the move was
attractive then will look to switch [to] the addressing the debt sustainability and politically motivated. The government denies
new bond.” economic outlook. Investors came away very this. Sonko was later released on bail.
REASSUREDûBYûTHEûMACROûTRAJECTORYûANDûlSCALû Sudip Roy
Quite where fair value lay was a matter of discipline.”
debate though all agree it was wider than
where the bond priced. Leads saw it at about Undoubtedly, Senegal faces a number of
big challenges.

Tancrede Feuillade, investment analyst at
'!-û)NVESTMENTS ûSAIDûTHAT ûLIKEû%THIOPIA û
3ENEGALûISûHIGHLYûDEPENDENTûONûOFlCIALû

International Financing Review June 5 2021 49

ASIA-PACIFIC maturity, were trading at a bid yield of RATINGS AGENCIES DOWNGRADE
4.723% and 5.153%, respectively, before the LANGUANG
CHINA release of IPG.
Global ratings agencies have taken more
CHINA HONGQIAO RETURNS WITH &ITCHûONû-AYû ûUPGRADEDû(ONGQIAO Sû negative ratings actions on SICHUAN LANGUANG
BIG BOND issuer rating to BB from BB– with positive DEVELOPMENT due to the Chinese property
outlook, citing the company’s “strong DEVELOPER SûHEIGHTENEDûRElNANCINGûRISK
Aluminium manufacturer CHINA HONGQIAO lNANCIALûPOSITION ûCONSISTENTûCASHmOWû
GROUP on Tuesday returned with a US$500m generation and favourable market -OODY SûONû-AYû ûDOWNGRADEDû
Reg S bond offering that was almost seven conditions over the next few years”. Languang’s issuer rating to B3 from B2 and
times subscribed and rallied in the its guaranteed US dollar senior bonds rating
aftermarket, taking advantage of recent rating -OREOVER ûTHEû3HANDONG
BASEDûCOMPANY Sû to Caa1 from B3. The ratings outlooks
upgrades and a surge in commodity prices. plan to move part of its aluminium capacity changed to negative from stable. This was
to Yunnan in two phases, if completed, will the second downgrade in less than a month.
4HEûDEAL ûWHICHûDREWûlNALûORDERSûOFûOVERû PROVIDEûGEOGRAPHICALûDIVERSIlCATIONûANDû 4HEûPREVIOUSûONEûWASûONû-AYû
US$3.4bn from 170 accounts, including lower policy risk related to power
US$300m from the leads, was also the Hong surcharges, said Fitch. /NûTHEûSAMEûDAY û3 0ûLOWEREDû,ANGUANG Sû
Kong-listed company’s largest dollar bond issuer rating to B– from B+ and its
ISSUEûSINCEûITSûlRSTûDOLLARûPRINTûINû û)Tû 3 0ûONû!PRILû ûUPGRADEDû(ONGQIAO Sû guaranteed US dollar senior bonds rating to
last tapped the market in September 2019 issuer rating to BB– from B+ in view of the CCC+ from B. It placed the ratings on credit
for US$200m. COMPANY SûIMPROVEDûlNANCIALûDISCIPLINE û WATCHûWITHûNEGATIVEûIMPLICATIONS û3 0ûHADû
revised its outlook on Languang to negative
The three-year senior unsecured bonds Hongqiao has managed its onshore bonds FROMûSTABLEûONû-AYû
were sold at par to yield 6.25%, inside initial REDEMPTIONûANDûIMPROVEDûITSûCREDITûPROlLEû
price guidance of 6.6% area. by a few actions this year, including a The Shanghai-listed company’s US dollar
US$300m convertible bond, a US$200m bonds have been under heavy selling
The issuer is rated Ba3/BB–/BB/BB+ syndicated loan, a HK$2.36bn (US$304m) pressure since mid-April on growing
-OODY S 3 0 &ITCH ,IANHEû'LOBAL ûANDûTHEû share placement and the introduction of liquidity concerns, with its bonds now
notes have expected ratings of B1/B+/BB/BB+ strategic investors with a capital injection of trading in the low-50s to mid-60s.
-OODY S 3 0 &ITCH ,IANHEû'LOBAL Rmb3.8bn (US$596m) into one of its core
subsidiaries. “The company’s funding access has
The newly priced bonds performed well weakened, as demonstrated by its highly
in the aftermarket and were quoted at Fitch expects Hongqiao’s net leverage to volatile onshore and offshore bond prices as
101.25/101.40 or a 5.79%/5.74% yield on remain low at around one time in 2021 and INVESTORS ûANDûCREDITORS ûCONlDENCEû
Wednesday morning. 2022, supported by strong aluminium prices weakened following continuous negative
and a stable margin. NEWSûAROUNDûTHEûCOMPANY vû-OODY SûWROTE
The rating upgrades, commodity prices
rally, and the company’s improved credit Proceeds from the new bond will be used !CCORDINGûTOû-OODY S û,ANGUANGûHASûSIZEABLEû
PROlLEûONûRECENTûFUNDRAISINGûACTIVITIESûALLû FORûDEBTûRElNANCINGûANDûGENERALûCORPORATEû debts becoming due or puttable in the coming
appealed to investors, a banker with one of purposes. 12–18 months, including over Rmb16bn
the leads said. (US$2.5bn) in onshore and offshore bonds and
China Citic Bank International was the lead around Rmb18bn in non-standard borrowings,
He said the new bonds offered some new global coordinator as well as joint global WHICHûITSûCASHûHOLDINGSûANDûOPERATINGûCASHmOWû
issue premium but did not provide a coordinator with Credit Agricole, ING, UBS, WILLûBEûINSUFlCIENTûTOûCOVER
number. “We didn’t give much [premium] if CMB International, DBS Bank and Societe
you compare with its existing bonds after Generale. -OODY SûSAIDûTHEûNEGATIVEûOUTLOOKû
factoring in the maturity extension.” REmECTEDûITSûEXPECTATIONûTHATûTHEûCOMPANY Sû
Hongqiao is the second-largest primary LIQUIDITYûPROlLEûWILLûREMAINûWEAKûOVERûTHEû
Hongqiao’s 7.125% 2022s and 7.375% aluminium producer globally, accounting next 12–18 months.
2023s, with 1.1 years and 1.9 years to for around 15% and 9% of domestic and
global output, respectively, according to 3 0ûSAIDûTHATû,ANGUANG SûDETERIORATINGû
Fitch. It has its own bauxite supply in liquidity may not improve without new
'UINEA ûALUMINAûSELF
SUFlCIENCYûANDûPOWERû funding sources.
supply that meets over 60% of its needs.

ALL INTL EMERGING MARKETS BONDS ALL INTL EMERGING MARKETS BONDS INTERNATIONAL ISLAMIC FINANCE DEBT
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE

Asia-Pacific No of Total Share Managing No of Total Share Managing No of Total Share
issues US$(m) (%) bank or group issues US$(m) (%) bank or group issues US$(m) (%)
Managing
bank or group 1 Citigroup 159 31,069.43 8.9 1 HSBC 8 1,842.24 14.8
2 JP Morgan 166 30,542.24 8.7 2 Standard Chartered 7 1,436.94 11.6
1 HSBC 154 16,340.86 8.6 3 HSBC 210 28,061.73 8.0 3 CIMB 4 1,370.65 11.0
2 Citigroup 89 14,138.27 7.4 4 Standard Chartered 151 18,289.23 5.2 4 Citigroup 5 1,228.19 9.9
3 JP Morgan 82 11,432.21 6.0 5 Bank of America 94 15,918.75 4.5 5 JP Morgan 5 1,054.76 8.5
4 Standard Chartered 110 10,119.14 5.3 6 BNP Paribas 114 15,717.88 4.5 6 Dubai Islamic Bank 3 808.75 6.5
5 Bank of America 58 7,251.23 3.8 7 Morgan Stanley 58 12,714.93 3.6 7 Goldman Sachs 3 628.57 5.1
6 BNP Paribas 78 7,178.06 3.8 8 Goldman Sachs 53 11,703.71 3.3 8 Emirates NBD 6 514.46 4.1
7 DBS Group 75 6,260.75 3.3 9 Credit Suisse 84 8,961.56 2.6 9 Warba Bank 2 450.00 3.6
8 Morgan Stanley 33 5,788.64 3.0 10 Deutsche Bank 84 8,560.20 2.4 10 MUFG 2 378.57 3.0
9 Deutsche Bank 68 5,745.22 3.0 619 350,659.00 14 12,440.48
10 Credit Suisse 65 5,684.82 3.0 Total Total
416 190,320.14
Total

Excluding equity-related debt. SDC code: L4 Excluding equity-related debt. SDC code: L1 Excluding equity-related debt. SDC code: J27
Source: Refinitiv Source: Refinitiv Source: Refinitiv

50 International Financing Review June 5 2021

EMERGING MARKETS ASIA-PACIFIC

Languang’s recent dispute with a trust Indofood dodges ESG concerns
company over a loan extension signals the
COMPANY SûINCREASINGûDIFlCULTYûINûMANAGINGû „ INDONESIA Blockbuster US$1.75bn debut issue brushes off palm oil controversy
ITSûLARGEûEXPOSUREûTOûNON
BANKûlNANCING û
3 0ûSAID û!CCORDINGûTOû3 0 û,ANGUANGûHASû INDOFOOD CBP SUKSES MAKMUR made a successful The 30-year tenor is the longest for US dollar
Rmb12bn in trust loans due within 2021. debut in the offshore bond market with an bonds in Indonesia’s non-SOE sector, while the
ambitious US$1.75bn two-tranche deal including overall issue size of US$1.75bn is the second
Languang is working on plans to sell its long tenors on the same day the Indonesian largest after Paiton Energy’s US$2bn offering
stake in some development projects. It earlier sovereign priced a sukuk offering. priced in August 2017, according to IFR data.
sold its entire stake in Sichuan Languang
Justbon Services Group to Country Garden The Reg S transaction was also unscathed by “Rates are low so the issuer wanted to take
Service Holdings for US$4.9bn. the company’s exposure to so-called conflict palm advantage of it,” said the banker.
oil, which has been blamed for forest loss, fires
3 0ûEXPECTSûTOûRESOLVEûTHEûCREDITûWATCHûINû and labour exploitation, although it did result in The new bonds were trading slightly higher
the next 30–60 days after it has details on some investors staying away from the deal. in the aftermarket with the 10-year and 30-year
Languang’s project disposals to assess their notes seen at a bid price of 100.40 and 100.70,
impact on debt repayment, and will The largest instant noodle producer in respectively, during the late morning hours of
consider the company’s ability to maintain Indonesia priced a US$1.15bn 10-year tranche at their first trading day on Thursday.
ITSûBANKûANDûNON
BANKûlNANCINGûCHANNELS par to yield 3.398% or Treasuries plus 180bp. A
US$600m 30-year note tranche was priced at WORKER EXPLOITATION
INDONESIA par to yield 4.745% or Treasuries plus 245bp. ICBP has faced allegations over labour
exploitation as one of its sister companies, PP
INDONESIAN SUKUK ADD VARIETY The respective initial price guidance was at London Sumatra Indonesia, was ousted from a
plus 225bp area and 280bp area. palm oil certification scheme, the Roundtable on
INDONESIA, rated Baa2/BBB/BBB, priced a Sustainable Palm Oil, in 2019 over violations of
US$3bn sukuk on Wednesday including a The bonds were covered more than five times, the non-profit organisation’s standards.
green tranche, adding some variety to the receiving final combined orders of over US$8.9bn
Asian bond market after a run of China- after peaking at more than US$11.4bn. Some banks, notably Citigroup, Rabobank and
centric supply. Standard Chartered, have since stopped providing
“Clearly, there wasn’t any cannibalisation credit or scaled back their exposure to Indofood.
Combined order books were over because of the sovereign’s deal as investors
US$10.3bn, including strong demand from had different portfolios,” said a banker on “There were certainly some investors that were
central banks, sovereign wealth funds and the transaction. “It’s a very rare deal from more inclined to the ESG aspect of the credit and
insurers. the non-SOE investment-grade corporate somewhat sensitive on this matter, but by-and-
space of Indonesia that offered investors a large, this wasn’t a major concern,” said another
h4HEû)SLAMICûlNANCEûCOMMUNITYûREALLYû huge diversification play from energy and banker on ICBP’s debut deal.
showed up for this deal, especially in utility sectors and truly different exposure to
3OUTHEASTû!SIAûANDûTHEû-IDDLEû%AST vûSAIDûAû consumption goods.” In a press release in 2019, London Sumatra’s
bookrunner. parent, Salim Ivomas Pratama, said it had decided
The senior unsecured notes with expected to focus its sustainability practices on implementing
!û53 BNûlVE
YEARûTRANCHEûPRICEDûATûPARû ratings of Baa3/BBB– (Moody’s/Fitch), in line with local Indonesia Sustainable Palm Oil standards,
TOûGIVEûAûPROlTûRATEûOFû ûAû53 BNû
YEARû the issuer, were priced through state-owned miner adding that the company was denied a formal
at 2.55%, and a US$750m 30-year at 3.55%. Indonesia Asahan Aluminium’s (Inalum) credit meeting with RSPO’s complaints panel. ICBP is
curve, but around 45bp wider compared with one 80.53%-owned by Indofood Sukses Makmur, which
The deal was marketed in yield terms, notch higher-rated SOE comparables such as is ultimately controlled by Salim Group.
and pricing translated to Treasuries plus Pertamina and Perusahaan Listrik Negara.
70.4bp, 95.7bp, and 125.5bp. Indofood signed a US$2.05bn loan last
Inalum’s 2030s and 2050s were seen at a bid November with a syndicate of 19 banks led
Joint global coordinators CIMB, Citigroup, yield of 3.4% and 4.76%, respectively, according by Bank of China, BNP Paribas, Mizuho Bank,
Dubai Islamic Bank, HSBC and Standard to Tradeweb. Natixis, OCBC Bank and Sumitomo Mitsui
Chartered set respective initial guidance at Banking Corp. That deal funded the strategic
1.9% area, 3% area and 4% area. Leads estimated fair value for the 10-year and acquisition of manufacturing partner Pinehill.
30-year notes at a Treasury spread of 190bp–
Indonesia’s conventional 2031 and 2051 200bp and 250bp–255bp, respectively. ICBP’s debut offshore bonds were priced via UBS,
dollar bonds were bid at respective yields of Deutsche Bank, Mizuho Securities, SMBC Nikko, DBS
2.24% and 3.08%. The sovereign’s sukuk Other comparables for the debut offering, Bank, Mandiri Securities, Natixis and OCBC.
typically pay 10bp–20bp over its which required some price discovery, included
conventional bonds, and a lead estimated Tower Bersama Infrastructure and Star Energy Indofood has strong brand recognition and an
the new sukuk priced 20bp–25bp back, in Geothermal from the Indonesian non-SOE established record of steady earnings growth,
line with fair value. sector and Haidilao International Holding, producing packaged food products including
China Mengniu Dairy and Tingyi (Cayman instant noodles, dairy products and snacks.
Indonesia’s last offshore sukuk was sold Islands) Holding from the food and beverage Jihye Hwang
in June last year, when spreads had widened sector.
as investors weighed up the likely economic
impact of the pandemic. That sukuk has WASûCAPPEDûDUEûTOûTHEûSPECIlCûUSEûOFû -ALDIVESûOPENEDûISSUANCEûTHISûYEARûWITHûAû
ALWAYSûTRADEDûATûAûSIGNIlCANTûPREMIUMûTOû proceeds for green projects. 53 MûDEBUTûINû-ARCH ûFOLLOWEDûBYûAû
Indonesia’s conventional bonds, and the 53 MûTAPûTHEûNEXTûMONTH û-ALAYSIAûPRICEDû
new notes priced 15bp–20bp inside it, said a All three tranches were seen above par in a US$1.25bn dual-tranche sukuk in April,
bookrunner. Fair value for the green 30-year the aftermarket on Thursday morning. including a 10-year sustainability tranche, and
was estimated at 3.65%, meaning that it ITSûSOVEREIGNûWEALTHûFUNDû+HAZANAHû.ASIONALû
BENElTEDûFROMûAû BPûGREENIUM Offshore sukuk issuance from Asia has completed a US$1bn dual-tranche offering in
been fairly busy this year, with the new deal
4HEûlVE
YEARûTRANCHEûWASûINCREASEDû bringing the total to US$5.6bn.
slightly on strong demand, but the 30-year

International Financing Review June 5 2021 51

GLOBAL EMERGING MARKETS BOND DETAILS: WEEK ENDING 4/6/2021

Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

ASIA Agile Group US$150m incr May 17 2026 (May 2024) 5.5 99.57 - 5.6
May 31 2021 Datang Group Holdings (US$450m) Jun 6 2022 12.5 99.547 - 13

May 31 2021 US$300m

May 31 2021 Qingdao Jiaozhou Bay US$200m Jun 7 2024 3.4 100 --
May 31 2021 Development Co 5.8
Jun 1 2021 6.25 100
Xi'an Port Industrial Co US$110m incr Dec 2 2023 100 - 5.8
China Hongqiao Group (US$300m) - 6.25
100
US$500m Jun 8 2024 100
99.163
Jun 1 2021 CSCEC Finance (Cayman) US$500m Perpetual (Jun 2026) 3.4 100.182 T5+258.1 3.4
Jun 1 2021 II hybrid US$325m Jun 8 2026 5.75 - 5.75
Jun 1 2021 100 - 7.4
Jun 2 2021 GRUPO AXO 100 - 7.5
100
Jun 2 2021 Zhenro Properties green US$340m Sep 10 2024 (Sep 2023) 7.1
Jun 2 2021 100
Jun 2 2021 E-House (China) Enterprise US$100m incr Jun 10 2023 7.6
(US$300m) 100

Indofood CBP Sukses US$1.15bn Jun 9 2031 3.398 99.419 T+180 3.398
Makmur Tbk PT 4.745 99.99 T+245 4.745
US$600m Jun 9 2051 1.5 100 70.4 1.5
Indofood CBP Sukses 100
Makmur Tbk PT US$1.25bn Jun 9 2026 100
100
Indonesia sukuk 100
99.621
Jun 2 2021 Indonesia sukuk US$1bn Jun 9 2031 2.55 95.7 2.55

Jun 2 2021 Indonesia green sukuk US$750m Jun 9 2051 3.55 125.5 3.55

Jun 2 2021 Shinhan Card social US$300m Jun 23 2026 1.375 T+70bp 1.496

Jun 2 2021 Skyfame Realty (Holdings) US$100m incr Dec 16 2023 (Dec 2022) 13 - 13
Jun 2 2021 SMC Global Power (US$292m) Perpetual (Dec 2026) 5.45 T+465.5 5.45
Jun 2 2021 - 4.35
May 31 2021 US$600m SOR+252.7 -

Jun 1 2021 Tata Motors US$425m Jun 9 2026 (Dec 2023) 4.35 SOR+273.5 -
Jun 2 2021 SOR+89.5 -
Jun 3 2021 MGCCT/Mapletree Greater S$250m Perpetual (Jun 2026) 3.5 T+92.5 1.254
China Commercial Treasury
Company hybrid S$300m Perpetual (Jun 2031) 4.3
S$4000 Jun 9 2031 2.45
Keppel Infrastructure Trust US$500m Jun 10 2024 1.125
Fund Management hybrid

Sembcorp Industries green

CSCIF Asia

52 International Financing Review June 5 2021

EMERGING MARKETS ASIA-PACIFIC

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution
-
5.95% area, 5.6% - - NR/BB- BOCI/BOCOMI/CNCBI/Guotai Junan/ -
(the #) - - Haitong Intl/BEA
-
13% (the #) NR/NR/BBB- Guotai Junan/CICC/Haitong Intl/ -
- CCBI/Galaxy Sec/Glory Sun/BNPP/
US$3.4bn, 170acs - CMBI/Everbright Sec/AMTD/Vision/
B1/B+/BB/BB+ Central/Soochow/Valuable/CMSHK
- (Lianhe Global) JQ Securities/GLAM Capital
- Baa3
3.8% area - US$2.9bn, 168acs Ba2/-/BB Zhongtai/Huaxia /Industrial/BoC/ -
- BOCOMI/CEB Intl/Central/CICC/
CMBCHK/CSI/CNCB HK/Donghai/
US$5.5bn, 243acs SPDB/Starwin/CMBC Cap
US$3.4bn, 210acs
5.8% - US$2.5bn, 103acs TF/Shenwan Hongyuan/Ping An HK/ -
Guoyuan/Industrial/Luso Wilson
US$4.8bn, 162acs Securities

6.6% area, 6.25% - US$3bn, 146acs CNCBI/CA-CIB/ING/UBS/CMBI/ Asia 87%, EMEA/US O/S 13%. FM/
(the #) DBS/SG/BOCI/CCBI/CNCB HK/ AM 87%, SWF/Ins 7%, Bks/FI 2%, PB/
US$1.98bn, 90acs Guosen/ICBCA/StCh/ABCI/Haitong Other 4%.
- Intl/CICC/Orient HTF Securities
US$1.2bn, 107acs
3.75% area, 3.4% - US$2.2bn, 138acs CICC/CLSA/Haitong Intl/Miz/HSBC/ -
(the #) - S$400m, 28acs DBS
S$700m, 50acs
Low-mid 6%s, 6% - S$675m MS/BBVA/BofA/HSBC -
(+/-12.5), 5.875% -
(+/-12.5), 5.75% B2/-/B+ DB/HSBC/StCh/BOCHK/BNPP/ Asia 86%, EMEA 14%. FM/FI 92%, PB
BOCI/CCBI/CLSA/CMBI/CS/Guotai 8%.
7.8% area, 7.4% NR/BB-/-/BB+ Junan/Haitong Intl/BEA/Zhenro
(the #) (Lianhe Global) BOCI/CS/Citi/BofA/CICC/CRIC/ -
Shandong Hi-Speed/Central/DB/
7.75% area, 7.5% - Baa3/-/BBB- Haitong Intl/Orient/UBS/Valuable/ Asia 59%, Eur 38%, US O/S 3%. FM
(the #) Vision 68%, SWF/Ins/PF 24%, PB 3%, Bks/
Baa3/-/BBB- UBS/DB/Miz/SMBC Nikko/DBS/ Corp/Other 5%.
T+225 area - Mandiri/Natx/OCBC Asia 66%, Eur 30%, US O/S 4%. FM
Baa2/BBB/BBB/ 71%, Ins/PF 21%, PB 5%, Bks/Corp/
T+280 area - Cicero 2PO UBS/DB/Miz/SMBC Nikko/DBS/ Other 3%.
Mandiri/Natx/OCBC Asia (ex-Indonesia) 34%, Indonesia 16%,
1.9% area, 1.5% - Baa2/BBB/BBB/ ME/Islamic 33%, Eur 10%, US 7%. FM
(the#) Cicero 2PO CIMB/Citi/DIB/HSBC/StCh 23%, CB/SWF/Agcy 30%, Ins/PF 4%,
Bks 41%, PB/Other 2%.
3% area, 2.55% - Baa2/BBB/BBB/ CIMB/Citi/DIB/HSBC/StCh Asia (ex-Indonesia) 35%, Indonesia 6%,
Cicero 2PO ME/Islamic 29%, Eur 18%, US 12%. FM
4% area, 3.55% - CIMB/Citi/DIB/HSBC/StCh 40%, CB/SWF/Agcy 12%, Ins/PF 10%,
A2 Bks 36%, PB/Other 2%.
T+105 area - BNPP/HSBC/SG Asia (ex-Indonesia) 34%, Indonesia 6%,
NR/NR/B- ME/Islamic 8%, Eur 25%, US 27%. FM
13% (the #) YTP - - CCBI/CMBI/Guotai Junan/CRIC/ 63%, CB/SWF/Agcy 5%, Ins/PF 12%, Bks
NR/B Kaisa/Golden Rich/Silk Road 19%, PB/Other 1%.
5.875% area, 5.45% - - CS/DBS/Miz/StCh/UBS Taiwan 40%, RoAPAC 59%, Eur/Other
(the #) - 1%. AM/FM 39%, Bks/FI 47%, Ins/PF
- ANZ/BNPP/BofA/Miz/StCh 11%, CB/SSA/Other 3%.
4.7% area, 4.35% -
(the #) OCBC /DBS
Asia 90%, EMEA 10%. Bks/FI 49%, PB
3.7% area 28%, FM/AM 23%.
Asia 75%, EMEA 25%. RM 77%, HF 12%,
AM 7%, Bks 2%, PB 2%.
-

4.55% area, 4.3% - - DBS/HSBC/OCBC /StCh SG 99%, Other 1%. FM/Bks/Other 23%,
PB 77%.
2.65% area, 2.45% - - DBS/UOB
- Baa1 -
T+140 area, T+92.5 CSI/CNCBI/ICBCI/ICBCA/ICBC
(the #) Sing/ABCI/BoC/CCBA/BoCom/ -
BOSC/SPDBI/StCh/HSBC/CNCB
HK/BOCOMI/CMBI/WingLung/
Industrial/CMBCHK/CMBC Cap/
SPDB/Everbright HK/Shenwan
Hongyuan/Daiwa/BofA/SG/BNPP/
Chiyu

International Financing Review June 5 2021 53

GLOBAL EMERGING MARKETS BOND DETAILS: WEEK ENDING 4/6/2021 (CONTINUED)

Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)
4.56 99.383 - 4.7
Jun 3 2021 Chongqing Nan'an Urban US$350m Jun 10 2026
Construction 100 - 3.5

Jun 3 2021 Gansu Highway US$400m Jun 10 2024 3.5 100 - 0.75

Jun 3 2021 Industrial Bank Co green HK$2.5bn Jun 10 2024 0.75

Jun 3 2021 Industrial Bank Co green US$600m Jun 10 2024 0.875 99.917 T+58 0.903

Jun 4 2021 Putian State-owned Assets US$85m incr Apr 23 2024 4.7 99.995 - 4.7

EMEA Investment Co (US$265m) 99.743 MS+70/B+100.3 0.427
Jun 2 2021 99.382 MS+130/B+163.8 1.107
MFB €500m Jun 9 2026 0.375 100 B+526.9/MS+500 5.375
Jun 2 2021 99.613 MS+93/B+123.8 1.041
Jun 2 2021 Raiffeisen AS green SNP €350m Jun 9 2028 (Jun 2027) 1
Senegal €775m Jun 8 2037 5.375 100 - 6.125
Jun 2 2021
SPP Distribucia €500m Jun 9 2031 1 96.446 - 5.75
LATAM 100 - 5.125
Jun 2 2021 Petro Rio US$600m Jun 9 2026 (Jun 2024) 6.125 100 - 4.625
96.446 - 5.75
Jun 2 2021 Petrobras Global Finance US$1.5bn Jun 10 2051 5.5 100 - 5.125
100 - 4.625
Jun 3 2021 CEMEX sub US$1bn Perpetual (Jun 2026) 5.125
Jun 3 2021 CSN US$850m Jun 10 2031 (Jun 2026) 4.625
Jun 2 2021 Petrobras Global Finance US$1.5bn Jun 10 2051 5.5

Jun 3 2021 CEMEX sub US$1bn Perpetual (Jun 2026) 5.125
Jun 3 2021 CSN US$850m Jun 10 2031 (Jun 2026) 4.625

-AY û4HEû-ALDIVES ûSTATE
OWNEDû(OUSINGû Hana previously tapped the public offshore Wednesday than when it last issued a year
Development Corporation is also rumoured to bond market with a €500m (US$600m) 0.01% ago.
be considering a US dollar sukuk. lVE
YEARûSOCIALûCOVEREDûBONDûOFFERINGûINû
January to become the third South Korean The agency, also known as MFB, sold a
SOUTH KOREA issuer of offshore covered bonds. õ MûNOûGROWûlVE
YEARûNOTEûISSUEûATû BPû
over swaps, the tight end of guidance and
KEB HANA HIRES FOR SUSTAINABLE NOTE EUROPE/AFRICA inside IPTs of 90bp area. Books were more
than €1.7bn.
KEB HANA BANK has hired banks to arrange HUNGARY
INVESTORûCALLSûSTARTINGûONû-ONDAYûFORûAû Even though there were two other
proposed US dollar 144A/Reg S senior MFB EMERGED, NO LONGER EMERGING #%%-%!ûISSUERSûINûTHEûEUROûMARKETûONûTHEû
unsecured sustainability bond offering with same day – Senegal and SPP distribucia –
ANûEXPECTEDûTENORûOFûlVEûORû ûYEARS û HUNGARIAN DEVELOPMENT BANK enjoyed a there were no problems with demand, with
smoother ride in the primary market on each deal comfortably oversubscribed.
Citigroup, Credit Agricole, HSBC, MUFG and
Standard Chartered have been mandated. The -&" ûRATEDû"AA """û -OODY S &ITCH û
3OUTHû+OREANûBANK ûRATEDû! ! û -OODY S 3 0 û issues its bonds with an explicit, direct and
PLANSûTOûUSEûTHEûPROCEEDSûFORûRElNANCING irrevocable state guarantee, so the sovereign
was the natural pricing reference point.
Hungary has April 2026s that were bid at
36bp over swaps.

54 International Financing Review June 5 2021

EMERGING MARKETS EUROPE/AFRICA

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution
- - NR/BBB
5% area, 4.7% NR/BBB BoC/CEB Intl/Everbright HK/CMBI/ -
(the #) - - Baa2/-/-/ CNCB HK/Orient/Guotai Junan/CISI/
Sustainalytics 2PO Haitong Intl/Industrial
3.8% area, 3.5% - -
(the #) Baa2/-/-/ BOCOMI/BoC/CEB Intl/Nanyang/ -
Sustainalytics 2PO Huaxia/Industrial/CCBI/CMBCHK/
1.1% area, 0.75% ABCI/Everbright HK
(the #) NR/NR/BB+
Industrial/ABCHK/BoC/BoCom/ -

BOCOMI/CMBCHK/Chiyu/Citi/

CLSA/CMBI/CA-CIB/ABCI/ABC

Sing/BEA/BOSC/CCBA/CCBSing/

Everbright HK/CICC/CMSHK/CSI/

WingLung/CMBC Cap/CNCB HK/

CISI/Dongxing/ENBD/Guotai Junan/

Haitong Intl/HSBC/Huaxia/Huafa/

Huatai/ICBCI/ICBCA/Nanyang/Natx/

SPDB/StCh/SMBC Nikko/SPDBI/

China Zheshang Bank HK

T+95 area, T+58 - - Industrial/ABCHK/BoC/BoCom/ -
(the #)
BOCOMI/CMBCHK/Chiyu/Citi/

CLSA/CMBI/CA-CIB/ABCI/ABC

Sing/BEA/BOSC/CCBA/CCBSing/

Everbright HK/CICC/CMSHK/CSI/

WingLung/CMBC Cap/CNCB HK/

CISI/Dongxing/ENBD/Guotai Junan/

Haitong Intl/HSBC/Huaxia/Huafa/

Huatai/ICBCI/ICBCA/Nanyang/Natx/

SPDB/StCh/SMBC Nikko/SPDBI/

China Zheshang Bank HK

4.7% (the #) - - CICC/BoC/CSI/Guotai Junan/ -
Industrial
€1.7bn
MS+90 area, - - Baa3/NR/BBB Citi/Erste/ING/Uni -
MS+70/+75 €4.25bn
- €1.6bn Baa3 Barc/CA-CIB/RBI -
MS+150 area - Ba3/B+ Citi/SG/StCh -
-
5.875%/6%, - Baa2/-/A CMZ/Erste/ING/SG -
5.5%/5.625% -
-
MS+120 area, -
MS+95/+100 -
-
Mid/High 6%s, - - B1/BB- MS/BTG/Itau/Safra/Santan -
6.25% (+/- 12.5),
6.125% - Ba2/BB-/BB- BofA/GS/Itau/JPM/Santan/UBS -

6.25% area, 5.8% - NR/BB/BB- BofA/Citi/HSBC -
(+/- 5), 5.75% - Ba3/BB- BTG/Citi/GS/Jeff/MS/Safra/UBS/XP -
- Ba2/BB-/BB- BofA/GS/Itau/JPM/Santander/UBS -
Mid/High 5%
- -/BB/BB- BofA/Citi/HSBC -
Low 5%s - Ba3/BB-
BTG/Citi/GS/Jeff/MS/Safra/UBS/XP -
6.25% area, 5.8%
(+/- 5), 5.75%

Mid/High 5%

Low 5%s

1UITEûWHATûPREMIUMû-&"ûSHOULDûPAYûOVERû The deal also repositioned the credit, he The company priced a €500m no-grow 10-
the sovereign was a matter of debate. Last ADDED ûh4HISûISûTHEûDEALûWHEREû-&"ûHASû year note at 93bp over swaps, which was
June, for example, it priced a €750m 2025 moved from emerging to emerged by marginally inside fair value, according to
note offering at 180bp over swaps, a level virtue of an order book full of euro leads.
that was about 70bp back of the sovereign’s investment-grade investors not seen in
curve and much wider than where bankers %-ûCREDIT v Pricing came inside guidance of
thought the bonds would land. 95bp/100bp. Initial price thoughts were
Citigroup, Erste Group, ING and UniCredit 120bp area. Books were about €1.9bn at
Since then the spread between the two were the leads. peak before falling to €1.6bn.
has narrowed to about 25bp. That implied
that fair value on this latest deal should be SLOVAKIA 4HEûCOMPANY ûRATEDû"AA ûBYû-OODY SûANDû
around the 60bp mark, but Hungary’s curve A– by Fitch, is a wholly owned subsidiary of
is not straightforward. SPP HITS THE MARK SPP Infrastructure, and is indirectly owned
by the Slovak Republic (A2/A/A+) and EP
“If you look at the full Hungary curve the SPP DISTRIBUCIA, the Slovak Republic’s natural Infrastructure (Baa3/BBB–/BBB), which hold
26s trade rich, which you need to discount monopoly gas distributor, took advantage of 51% and 49% respectively, though EP
versus the 25s,” said a lead. STABLEûMARKETûCONDITIONSûTOûPRINTûITSûlRSTû Infrastructure has management control.
bond in seven years.
7ITHûTHATûINûMIND ûTHEûlNALûSPREADûONû CEE investment-grade rated corporates
-&"ûMEANTûITûCAMEûINûLINEûWITHûFAIRûVALUE û sometimes fall between the cracks, being
he said. neither emerging markets credits nor pure

International Financing Review June 5 2021 55

investment-grade. That then can affect the The move sparked worries that the CSN ADDS TO BRAZILIAN BOND SUPPLY
bookbuild and pricing of their deals. government would take a more
interventionist approach to the state-owned "RAZILIANûSTEELûPRODUCERûCOMPANHIA
But in an illustration of just how strong company and potentially move away from SIDERURGICA NACIONAL brought the third
the market backdrop is, SPP faced no market-friendly policies. Some of the "RAZILIANûBONDûDEALûOFûTHEûWEEKûTOûTHEû
problems in building momentum for its company’s bonds dropped by nearly seven international primary market on Thursday
trade. points at the time. WITHûAûNEWû
YEARûNON
CALLûlVEûSENIORû
unsecured offering.
Leads put fair value at 95bp based on the Pricing on the new 30-year came
curves of Slovak transmission systems operator marginally back of Petrobras’ 6.75% 2050s, Leads BTG, Citigroup, Goldman Sachs, Jefferies,
%USTREAMûANDû#ZECHûGASûDISTRIBUTORû#'. û which were trading at 114.26 to yield 5.72% Morgan Stanley, Safra, UBS, and XP priced the
LASTû7EDNESDAY ûACCORDINGûTOû-ARKET!XESS û deal at par to yield 4.625%, tightening from
0ROCEEDSûWILLûRElNANCEûTHEûLASTûBONDû300û IPTs at low 5%.
issued, in June 2014, which is coming due Some were seeing much more value when
later this month. Expected issue ratings are compared with similar credits in the US IPTs were bit wider than fair value
"AA ûFROMû-OODY SûANDû!ûFROMû&ITCH high-yield sector. Double B credits were estimates in the 4.5% to 4.75% range, said
trading at an average yield of about 3.43% CreditSights’ Sebastian Hofmeister in a
Commerzbank, Erste Group, ING and Societe last Tuesday, according to ICE BofA data. The report early Thursday.
Generale were the leads. average yield for high-yield energy credits
was about 5.16%. “We remain constructive on CSN, with a
AMERICAS ‘positive’ fundamental credit bias, and
“The credit story remains more robust, believe that the ratings gap to most of these
BRAZIL WITHûSOLIDûCASHmOWûGENERATIONûANDûLIQUIDITY û domestic peers will close further in the
The negative impact is mainly on the pace of coming quarters,” he said.
PETROBRAS DRAWS HEFTY DEMAND de-leveraging, which is largely dependent
ONûSELLINGûTHEûSTAKESûINûTHEûRElNERIES vûSAIDû The company is expected to deleverage
PETROBRAS approached investors last an UK analyst looking at the transaction. toward its 1x target by the end of the 2021
7EDNESDAYûFORûTHEûlRSTûTIMEûTHISûYEARûWITHûAû lSCALûYEAR ûMOSTLYûDRIVENûBYûTHEûSTRENGTHûOFû
US$1.5bn 30-year note issue. An improvement in the company’s the mining sector and robust performance
balance sheet over the next couple of years INûTHEûDOMESTICûmATûSTEELûBUSINESS ûTHEû
4HEû"RAZILIANûOILûCOMPANY ûRATEDû"A ""n could also push it closer to investment report said.
BB–, priced the bonds at 5.75% off about grade, which it lost in 2015, said
US$10bn in orders, according to sources CreditSights in a report. Credit metrics for CSN have improved
close to the deal. since 2019 mostly due to strong
h4HEûCOMPANY SûFREEûCASHmOWûGENERATIONû performance in the iron ore sector, said
Initial price thoughts were at 6.25% area was resilient in the face of last year’s -OODY S û
via leads Bank of America, Goldman Sachs, Itau. downturn and debt reduction remains a top
JP Morgan, MUFG, Santander and UBS. priority,” said the report. CSN’s adjusted Ebitda increased to
2 BNûINûTHEû ûMONTHSûENDEDû-ARCHû
“The credit is on the mend,” said a New Fitch expects that Petrobras will see from R6.3bn in 2019 and adjusted leverage
9ORK
BASEDû%-ûCREDITûSTRATEGIST ûh)ûTHINKûTHEû Ebitda and funds from operation declined to 2.4 times from 4.8 times,
backdrop should keep it in good stead. The consistently reaching above US$26.5bn and -OODY SûHIGHLIGHTED û
oil price is up, they have new bidding US$18.9bn, respectively, over the next few
processes, and gasoline prices are up. The years. The company reported Ebitda, Thursday’s issuance was the third
backdrop is reasonably favourable.” adjusted for leases, of US$23.9bn at year-end "RAZILIANûISSUANCEûOFûTHEûWEEK û/Nû
2020, down from an average of about 7EDNESDAY û"RAZILIANûSTATE
OWNEDûOILû
In February, several investors dumped the US$27bn over the previous three years, company PETROBRAS and fellow oil and gas
company’s bonds following President Jair according to Fitch. name PETRORIO sold a combined US$2.1bn of
Bolsonaro’s appointment of Joaquim Silva e debt.
Luna as CEO to replace Roberto Castello, who Proceeds from last week’s deal will used
had run the company from January 2019. to fund a tender offer for some of the -ANYûCOUNTRIESûINûTHEûREGIONûHAVEûSEENû
company’s outstanding bonds and also for political volatility in the last few weeks with
general corporate purposes. -EXICOûANDû0ERUûALSOûHOLDINGûMIDTERMûANDû
presidential elections recently.

ALL INTL EMERGING MARKETS BONDS ALL INTL EMERGING MARKETS BONDS ALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE

Europe/Africa No of Total Share Middle East No of Total Share Latin America No of Total Share
issues US$(m) (%) issues US$(m) (%) issues US$(m) (%)
Managing Managing Managing
bank or group bank or group bank or group

1 JP Morgan 25 6,194.20 11.8 1 Standard Chartered 30 5,596.19 12.0 1 JP Morgan 32 9,035.21 15.2
2 Citigroup 18 5,197.51 9.9 2 Citigroup 26 5,374.90 11.5 2 Citigroup 24 6,957.55 11.7
3 BNP Paribas 16 3,913.67 7.5 3 HSBC 30 4,822.86 10.3 3 Bank of America 22 6,309.54 10.6
4 HSBC 11 3,004.77 5.7 4 JP Morgan 23 4,119.96 8.8 4 Morgan Stanley 18 6,008.52 10.1
5 Goldman Sachs 7 2,749.54 5.2 5 Goldman Sachs 5 Santander 25 5,197.49 8.7
6 SG 9 2,661.24 5.1 6 First Abu Dhabi 9 2,193.04 4.7 6 HSBC 13 3,711.76 6.2
7 UniCredit 12 2,566.85 4.9 7 BNP Paribas 15 2,050.09 4.4 7 Goldman Sachs 14 3,129.75 5.3
8 Standard Chartered 10 2,481.04 4.7 8 Barclays 7 1,595.53 3.4 8 BBVA
9 Bank of America 10 1,975.42 3.8 9 Mizuho 12 1,406.88 3.0 9 BNP Paribas 7 2,852.48 4.8
10 VTB Capital 8 1,738.30 3.3 10 Morgan Stanley 11 1,323.90 2.8 10 Barclays 10 2,549.49 4.3
59 52,450.28 7 1,308.98 2.8 6 1,907.14 3.2
Total Total 69 46,633.22 Total 63 59,446.69
SDC code: L2
Excluding equity-related debt. Excluding equity-related debt. SDC code: L5 Excluding equity-related debt. SDC code: L3
Source: Refinitiv Source: Refinitiv Source: Refinitiv

56 International Financing Review June 5 2021

EMERGING MARKETS AMERICAS

“You’re down to just a few countries in Calls ahead of the transaction started on 3IMILARLYûRATEDû"RAZILIANûONLINEûRETAILERû
Latin America that are not without issues, *UNEû û2ATINGSûOFû"AA ûBYû-OODY SûANDû"""nû B2W (Ba1/BB), for example, had a 4.375%
regardless of where they sit in the credit by Fitch are expected. 2030 bond issue trading at a price of 100.125
spectrum,” said a New York-based strategist. TOûYIELDû ûASûOFû-AYû ûACCORDINGûTOû
MEXICO -ARKET!XESS û
“From where I sit, we’re basically down to
-EXICO û5RUGUAY ûANDûYOU DûHAVEûTOûPUTû GRUPO AXO BREAKS PRIMARY DROUGHT Yet, some said the impact of Covid-19 on
"RAZILûINûTHEREû;ASûCOUNTRIESûWITHûTHEûLESSû -EXICO SûECONOMY ûWHICHûSHRANKûBYû ûINû
amount of risk],” he added. -EXICANûRETAILERûGRUPO AXOûSOLDûITSûlRSTû 2020, should have earned investors a higher
dollar bond issue last Tuesday, breaking a yield.
Despite high debt levels and low debt primary market drought of more than two
AFFORDABILITY û"RAZILûHASûSUSTAINEDûIMPROVEDû weeks from Latin America. “I wouldn’t have taken this deal for less
monetary policy effectiveness and lower than 6%,” said a trader looking at the issue.
INmATION ûSAIDû-OODY SûINûAûREPORTûLASTû 4HEûCOMPANY ûRATEDû"A ""û -OODY S “5.75% is really low especially for the
month. &ITCH ûPRICEDûAû53 MûlVE
YEARûNON
CALLû COUNTRYûRISK û2IGHTûNOW û-EXICOûISûNOTûINûTHEû
two note offering at par to yield 5.75%, after best situation following Covid. The levels
Proceeds from CNS’ deal are expected to LEADSûUPSIZEDûTHEûDEALûFROMûANûEXPECTEDû seem very aggressive to me.”
lNANCEûAûCONCURRENTûANY
AND
ALLûCASHûTENDERû US$300m.
offer for a subsidiary’s 7.625% senior 'RUPOû!XOûISûONEûOFû-EXICO SûMAINû
unsecured notes due 2023 and for general The order book climbed to about apparel operators with long-term
corporate purposes. US$1.7bn, sources close to the transaction relationships with suppliers and real estate
said. That helped leads Morgan Stanley, BBVA, developers in the country, said Fitch.
CSN is rated Ba3/B+/BB-. Bank of America, and HSBC tighten pricing
from initial levels of low-to-mid 6%. Final h4HEûNEGATIVEûOUTLOOKûREmECTSûTHEû
COLOMBIA guidance was 5.875% (+/–12.5bp). uncertainty regarding additional mobility
restriction measures from the government
AUTOPISTA RIO MAGDALENA PREPS 4HEûlNALûPRICEûDREWûMIXEDûOPINIONS ûWITHû to contain the pandemic and consumer
PESO BONDS some investors saying the deal looked cheap discretionary spending concerns,” said Fitch
and others that it should have been priced in a report last week.
Colombian toll road concessionaire ABOVEû ûDUEûTOûELEVATEDû-EXICOûRISK û
AUTOPISTA RIO MAGDALENA has appointed banks Axo’s consolidated revenues in 2020
to lead an upcoming peso-denominated “I think the 5.875% guidance looks cheap. declined by 2.4% compared with the
bond issue. I thought it could trade low 5%s given where previous year, with Ebitda down almost 45%
OTHERû-EXICANû$OUBLEû"SûTRADEûANDûINDUSTRYû from 2019.
Goldman Sachs is sole bookrunner on the comparables [are trading},” said an analyst
144A/Reg S offering, which could come this following the transaction. Fitch expects Axo’s revenues and
week. PROlTABILITYûTOûBEGINûRECOVERINGûINû û
with expected adjusted leverage closer to
low-4x in 2022–23.

Reach the people
who matter

Advertising and sponsorship
opportunities in IFR

The most senior professionals in the world’s capital markets rely on IFR for
authoritative and independent news, data and analysis – and have done for more than 40 years.
IFR provides an unrivalled opportunity for advertisers to reach the people who drive and shape the
industry and gives them the chance to associate their company with the world’s number one source of
global capital markets intelligence.

For more information, please contact:
Europe, Africa & USA: Leonie Welss, [email protected], tel: +44 (0)20 4530 3073
Asia & Middle East: Shahid Hamid, [email protected], tel: +65 975 55031

International Financing Review June 5 2021 57

MAKE YOUR
DEAL COUNT.

Contribute your fixed income deals
to Refinitiv and reach over a half a million
buy- and sell-side professionals around
the world – and be included in our
industry-leading league table rankings.

Visit contribute.refinitiv.com/FIsignup or contact
our team at contribute@refinitiv.com

LOANS

Australia 60 China 60 Hong Kong 61 India 62 Vietnam Finland France

Netherlands 64 UK 65 United States 66 Mexico 67 Leveraged Loans 67 Restructuring 71

„ FRONT STORY ASIA-PACIFIC MARKET

CP seeks leeway on Tesco debt

Amendment would allow major stake sale in newly acquired Lotus’s chain
CP borrowed US$7.2bn for acquisition of Tesco Asia less than a year ago

CHAROEN POKPHAND GROUP has asked lenders “We have no idea who they will bring into Another banker said that CP Group was
for permission to restructure its ownership THEûDEALûANDûIT SûDIFlCULTûFORûUSûTOûREVIEWûTHEû merely carrying out a technical
of Lotus’s, the supermarket chain it amendment request,” said a second senior adjustment to the loan agreement and just
acquired from UK-based Tesco less than a loan banker. re-aligning the covenants to standard
year ago, prompting speculation over the market practice.
Thai conglomerate’s long-term plans for its A third banker said: “If the group is
newest asset. monetising its stake, it should translate into “This is just an amendment, not a waiver
SOMEûBENElTûFORûTHEûLENDERSûONûTHEûBRIDGEû following a covenant breach or deterioration
CP Group, which borrowed US$7.2bn- loan. Proceeds from such a disposal should OFûCREDITûPROlLE vûADDEDûTHEûBANKERûINû(ONGû
equivalent to fund the acquisition of Tesco GOûTOWARDSûREPAYINGûLENDERSûlRST Kong. “CP Group will still be in control of
Asia, is looking to amend a covenant that the asset, which it is not likely to give up
prevents the ultimate shareholders of CP “A stake disposal could create a situation after its experience in the 1990s.”
Retail Holding, the holding company with more than one shareholder in the SPV
created for the US$10.6bn acquisition, from that does not hold any other asset. If there is The acquisition represented a
reducing their 100% stake. a shareholder with a different agenda on homecoming of sorts for Dhanin
matters like upstreaming of dividends from Chearavanont’s CP Group, helping it gain
CP All, the group’s convenience store the operating company unit, that would control of the 1,965 stores Tesco operated in
unit, has a 40% stake in CPRH, while have some impact on debt servicing.” Thailand – many of which it sold to the
Charoen Pokphand Holdings and CP "RITISHûlRMûINûTHEûAFTERMATHûOFûTHEû n û
Merchandising, a wholly owned subsidiary “We didn’t expect CP Group to !SIANûlNANCIALûCRISISûnûALONGSIDEûAûSMALLERû
of Charoen Pokphand Foods, hold 40% and come up with something like Malaysia portfolio. It rebranded the chain
20%, respectively. this so soon” from Tesco Lotus to Lotus’s earlier this year.

If the lenders agree, the three CP All did not respond to a request for KEEPING WATCH
shareholders will be able to reduce their comment. While the loan and the acquisition closed
combined stake to a minimum of 51%, successfully in the middle of the pandemic,
effectively allowing CP Group to bring in 4HEûACQUISITIONûlNANCINGûCLOSEDûTOûAû lenders are closely watching the impact of
EXTERNALûINVESTORSûORûRESHUFmEûTHEû BLOWOUTûRESPONSEûLASTû!UGUSTûATTRACTINGû û Covid on CP Group’s retail businesses and
shareholder line-up. banks, including two dozen lenders that the leverage levels as a result of the
joined in general syndication. JP Morgan acquisition.
The move has not gone down well with Chase Bank Hong Kong branch, Siam
some existing lenders, who have construed Commercial Bank and UBS Hong Kong In February, Fitch downgraded CP All’s
ITûASû#0û'ROUP SûPLANûTOûOFmOADûAûBIGûSTAKEû branch were the original mandated lead long-term rating to A– from A due to
in its newly acquired business. Some have arrangers, bookrunners and underwriters of additional debt after the purchase of Tesco
also questioned the urgency, given that the borrowing, which is the largest on Asia, while its revenue growth was lower
RElNANCINGûPLANSûAREûALREADYûUNDERûWAY record from Thailand. Lenders were offered than expected amid the challenging
TOP
LEVELûALL
INûPRICINGûOFû BPûVIAûAû operating environment arising from the
“We didn’t expect CP Group to come up blended interest margin of 184bp over Libor Covid-19 pandemic. Fitch believes the weak
with something like this so soon and the and an average life of 1.22 years. customer sentiment trend will continue in
request is a bit redundant at this point as 2021.
THEûTAKE
OUTûOFûTHEûBRIDGEûlNANCINGûISû MERE TECHNICALITY?
expected shortly,” said a senior banker With a large syndicate of three dozen The rating agency also estimated that CP
from an existing lender. lenders in the loan, other bankers are more All’s leverage rose to 6.6 times in 2020
relaxed about the amendment request. following its Tesco acquisition, from 4.0
CP All is already in the market with a times in 2019. It also projected leverage to
Bt66bn (US$2.11bn) baht bond that will “Most loan agreements don’t have fall to about 6.0 times in 2021 and 5.5 times
HELPûRElNANCEûTHEû53 BN
EQUIVALENTû
ownership covenants for 100% control,” said a in 2022.
month Tranche A of the Tesco acquisition senior loans banker in Hong Kong. “Typically,
loan. CP Retail Development, another non-recourse loans carry covenants requiring “The US$10.6bn bid price might have
vehicle created for the acquisition, is also 51% control, which is still good enough.” been a bit high as it was before the
expected to tap the loan market to take out emergence of coronavirus cases when CP
the US$4bn-equivalent 18-month Tranche One banker said the amendment gives CP Group proposed its bid. It’s likely that CP
B. CPRD is wholly owned by CP Retail 'ROUPûADDEDûmEXIBILITYûINûTERMSûOFûOPTIONSû Group would sell its shares and partially pre-
Holding. for the take-out of the bridge loan. pay the loans to lower its leverage ratio,”
said another banker.
Some lenders are concerned about the Evelynn Lin, Prakash Chakravarti
consequences of a potential disposal of CP
Group’s stake.

International Financing Review June 5 2021 59

ASIA-PACIFIC In January, Yankuang Group (Hong Kong), Commonwealth Bank of Australia, Morgan
a unit of Shandong-based Yankuang Group, Stanley and United Overseas Bank were the
AUSTRALIA RAISEDûAû53 MûTHREE
YEARûTERMûLOANûFROMû mandated lead arrangers, bookrunners and
four lenders. The loan pays a margin of underwriters of the four-tranche loan,
YANCOAL LOAN NEARS CLOSE 170bp over Libor. which attracted 17 other lenders in
syndication.
YANCOAL AUSTRALIA’s US$400m dual-tranche TPG TELECOM SEALS A&E
loan is slated to close by the end of the month. SCAPE URBANEST FINANCE is the borrower.
TPG TELECOM has completed an amendment In April, Scape won consent on another
Bank of China and Citigroup are the and extension of the outstanding amount on loan to extend the maturity of one of its
coordinating mandated lead arrangers and a A$5.25bn loan with 15 banks. tranches and waive the interest coverage
bookrunners of the term cash advance ratio.
facility, which is split into three-year and The loan outstanding is A$4.75bn, split !û! MûTWO
YEARûTRANCHEûWASû
lVE
YEARûTENORS into a A$2.07bn three-year term Tranche A, extended by 12 months to September 2022.
Aû! BNûlVE
YEARûTERMû4RANCHEû"ûANDûAû 4HEû! MûLOANûSIGNEDûINû ûWASû
The interest margins are 280bp and ! MûlVE
YEARûREVOLVINGû#REDITû&ACILITYû# for the acquisition of a student housing
BPûOVERû,IBOR ûRESPECTIVELY ûFORûTHEû portfolio from Atira Student Living.
THREE
YEARûANDûlVE
YEARûTRANCHES Through the A&E exercise the company The covenant waiver for the interest
has reversed the pricing to the original coverage ratio applies until March 2022 for
Lenders were invited at two ticket levels. levels at which it launched the facility in that loan.
MLAs committing US$50m or more March last year. All lenders agreed to the maturity
receive front-end fees of 75bp and 125bp for extension request, while the majority of
THEûTHREE
YEARûANDûlVE
YEARûTRANCHES û The interest margins on the borrowing them consented to the covenant waiver.
respectively, while lead arrangers coming in are reduced by 65bp, with Tranche A now
for less than US$50m earn 60bp and 100bp. back to 125bp over BBSY and Tranches B and CHINA
The borrowers are Yancoal Australia’s C at 145bp over.
subsidiaries – YANCOAL RESOURCES and COAL & SOFTBANK LOAN IS A HIT
ALLIED INDUSTRIES. The margins are based on leverage of
0ROCEEDSûWOULDûBEûUSEDûTOûRElNANCEûANû n ûTIMES SOFTBANK GROUP CORP has closed a US$2bn
EXISTINGû53 MûTERMûCASHûADVANCEû add-on facility to a US$8bn two-year margin
facility, general corporate purposes, and for The borrower offered lenders a 10bp loan pledged against its stake in Chinese
a one-off contribution to Yancoal Australia, amendment fee to extend the maturity of e-commerce giant Alibaba Group Holding,
in order to optimise the funding mix at the the three-tranche borrowing by a year. after attracting an overwhelming response
parent company level. from 14 lenders.
The deal was launched at the end of March Mandated lead arrangers are ANZ, OCBC,
with a deadline for commitments of early May. SMBC, Bank of China (Hong Kong), Bank of China The banks joining are: Bank of East Asia,
In July last year, Yancoal obtained a Sydney branch, ING Bank Australia and ING Bank Bank SinoPac, China Minsheng Bank, Chiyu
53 BNûlVE
YEARûLOANûTOûREPLACEûANû Singapore branch. Lead arrangers are Westpac Banking Corp, Citigroup, CTBC Bank, First
existing syndicated term loan of the same Banking Corp, Bank of America, Mizuho Bank, Commercial Bank, KGI Bank, Mega International
size that had repayments in 2020 and 2021. China Construction Bank, MUFG, DBS Bank, Commercial Bank, Kookmin Bank, MUFG,
Last June, Yancoal Resources and Coal & Credit Agricole CIB, Intesa Sanpaolo, Deutsche Nanyang Commercial Bank, Shanghai Pudong
Allied Industries signed an A$975m Bank and United Overseas Bank. Development Bank, Woori Bank and Woori Global
53 M ûTHREE
YEARûBANKûGUARANTEEû Markets Asia.
facility to replace an existing loan that The larger A$5.25bn loan from 2020
backed Yankuang Group’s acquisition of Rio supported the merger of TPG Telecom and They join another 18 lenders that had
Tinto’s Australia unit. Vodafone Hutchison Australia. participated in the US$8bn initial deal that
closed in March.
ASIA-PACIFIC LOANS BOOKRUNNERS – FULLY Tranche A was partially repaid before and
reduced from a A$2.57bn size. A couple of banks joined both deals.
SYNDICATED VOLUME (INCLUDING JAPAN) The total US$10bn borrowing will have a
BOOKRUNNERS: 1/1/2021 TO DATE TPG TELECOM FINANCE is an additional LOAN
TO
VALUEûRATIOûOFû n ûOFFERINGûANû
borrower. ALL
INûPRICINGûBELOWû BP ûBASEDûONûANû
Managing No of Total Share interest margin of 250bp over Libor.
bank or group issues US$(m) (%) SCAPE WINS COV WAIVER SoftBank Group’s wholly owned special
purpose vehicle is the borrower.
1 Bank of China 145 32,040.71 15.8 Scape Australia has won consent from the In October, SB Northstar, SoftBank’s asset
2 Mizuho 202 31,540.00 15.5 majority of its lenders to waive a covenant management subsidiary, which invests in
3 MUFG 373 26,635.47 13.1 on a A$1.45bn loan signed last year for the listed stocks and other instruments,
4 Sumitomo Mitsui 276 24,252.09 11.9 acquisition of a student housing portfolio borrowed US$6bn against the Alibaba shares
5 Ag Bank of China 13,364.02 6.6 from Urbanest, following a similar exercise it held.
6 China Development 24 6,005.78 3.0 for another borrowing. Last July, Skywalk Finance, a wholly
7 China Merchants 5 4,675.64 2.3 owned subsidiary of SoftBank Group, repaid
8 Bank of Comms 11 The interest coverage ratio covenant, US$9.44bn in borrowings that carried
9 ICBC 12 4,159.31 2.0 tested quarterly, will be waived until the pledges on Alibaba shares, according to
10 Standard Chartered 19 4,093.24 2.0 March 2022 quarter to cope with the impact 3OFT"ANKû'ROUP SûlNANCIALûREPORTûASûATû
3,490.53 1.7 of border restrictions arising from the $ECEMBERû û
Total 24 203,261.04 coronavirus pandemic. The move was part of SoftBank’s ¥4.5trn
1,275 debt reduction programme.
Last year, lenders had agreed to waive the
Proportional credit SDC code: S3a covenant on the loan until March this year.
Source: Refinitiv
4HEûBORROWINGûISûSPLITûINTOû! MûANDû
! MûTWO
YEARûPORTIONS ûANDûTHREE
YEARû
pieces of A$246.8m and A$720.7m.

The 2020 loan offers interest margins of
155bp and 165bp over BBSY for the two and
three-year tranches, respectively.

60 International Financing Review June 5 2021

LOANS ASIA-PACIFIC

!SûATû$ECEMBERû û û3OFT"ANKû'ROUPû CHINA RENAISSANCE DOUBLES Original lenders are Mizuho Bank, Mega
had a 25.02% stake in Alibaba, according to International Commercial Bank, Hua Nan
3OFT"ANK SûlNANCIALûREPORTûFORûTHEûYEARû (ONGû+ONG
LISTEDûlNANCIALûSERVICESûlRMû Commercial Bank, Chang Hwa Commercial Bank,
ENDEDû-ARCHû û CHINA RENAISSANCE HOLDINGS has doubled its Land Bank of Taiwan, Taiwan Cooperative Bank,
DEBUTûOFFSHOREûTHREE
YEARûLOANûTOû53 M û First Commercial Bank, Bank of Taiwan, E. Sun
JC LEASING SEEKS US$150m after attracting 10 banks in syndication. Commercial Bank, Taiwan Business Bank, Export-
Import Bank of the Republic of China and Bank of
JC INTERNATIONAL FINANCE & LEASING, a unit of Bank of Communications Hong Kong branch Kaohsiung.
Hong Kong-listed investment group Legend was the sole mandated lead arranger and
Holdings, has launched a US$150m three- BOOKRUNNERûOFûTHEûlNANCING ûWHICHûOFFEREDû Other Chailease group entities currently
year loan, returning to the market following a top-level all-in pricing of 250bp via an in the Asian loan market include units in
what appears to be an unsuccessful attempt interest margin of 200bp over Libor. Malaysia, Taiwan and Vietnam.
last year.
Lead arrangers are China Citic Bank and HONG KONG
Deutsche Bank and Natixis are the mandated International and China Merchants Bank.
lead arrangers and bookrunners of the Arrangers are Hua Xia Bank, Bank of China, AGILE WRAPS UP REFI
transaction, which offers an interest margin Nanyang Commercial Bank and Luso International
of 180bp over Libor and has an average life Bank. Senior managers are Bank SinoPac and Hong Kong-listed property developer AGILE
of 2.9 years. Tai Fung Bank. Managers are Chiyu Banking Corp GROUP HOLDINGS has increased a three-year
and Shanghai Pudong Development Bank. loan to US$706m-equivalent after attracting
"ANKSûJOININGûASû-,!SûWITHû53 MûORû four lenders in general syndication.
more receive a top-level all-in pricing of Proceeds are for working capital.
215bp via a 101.5bp fee, while lead #HINAû2ENAISSANCEûPROVIDESûlNANCIALû Bank of East Asia, Chong Hing Bank, Hang Seng
arrangers coming in for US$15m–$29m earn services including private placement Bank, HSBC and Standard Chartered Bank were
an all-in of 210bp via a 87bp fee. advisory, M&A advisory, direct investment, the mandated lead arrangers and
equity underwriting, sales, trading and bookrunners of the latest transaction, which
Legend Holdings will provide an brokerage, research, structured products, COMPRISESûAû(+ BNû 53 M ûTRANCHEû
unconditional and irrevocable guarantee for asset management and wealth management. and a US$28.5m portion.
the facility. !SûOFû$ECEMBERû û û#HINAû
Renaissance’s private equity funds had Mandated lead arranger is Shanghai Pudong
JC Leasing launched its debut offshore assets under management of approximately Development Bank. Lead arranger is Luso
US$200m loan in May last year and was Rmb57bn (US$8.95bn) in new economy International Bank. Arrangers are China
FORCEDûTOûmEXûPRICINGûBYûAROUNDû BPûAFTERû investments, according to its website. Minsheng Banking Corp and Macau Development
failing to attract banks despite syndication Bank.
lasting four months. CHAILEASE UNITS CLOSE LOANS
Lenders were offered top-level all-in
The three-year loan had originally offered Taiwanese leasing giant Chailease Holding’s pricing of 460bp via an interest margin of
a top-level all-in pricing of 175bp via a Chinese and Singaporean units have BPûOVERû,IBOR (IBORûWHENûTHEûDEALûWASû
margin of 150bp over Libor. It is not clear if completed loans totalling US$289m- launched at a US$600m-equivalent size in
JC Leasing was able to close the deal. equivalent. mid-April.
Deutsche was the sole MLAB.
CHAILEASE INTERNATIONAL FINANCE, the &UNDSûAREûFORûRElNANCINGûANDûGENERALû
SHUI ON LAND UPS LOAN #HINESEûUNIT ûHASûCOMPLETEDûAûc BNû corporate purposes.
53 M û
YEARû3AMURAIûLOANûFORû
Hong Kong-listed property developer Shui RElNANCING ûWHILEûCHAILEASE INTERNATIONAL Agile’s previous visit to the market was in
On Land has increased a two-year FINANCIAL SERVICES (SINGAPORE) has closed a November last year for a HK$4.2bn-
RElNANCINGûTOû53 MûFROMû53 Mû US$168m three-year borrowing. equivalent three-year loan that paid a
after attracting nine banks in general TOP
LEVELûALL
INûOFû BPûVIAûAûMARGINûOFû
syndication. Mizuho, the mandated lead arranger of the BPûOVERû(IBOR ,IBOR û
Samurai loan, ended up with ¥10bn, while
Standard Chartered (Hong Kong) was sole four regional banks and a leasing company – It is rated Ba2/BB (Moody’s/S&P).
mandated lead arranger, bookrunner and all from Japan – joined with total
underwriter of the facility, which offered a COMMITMENTSûOFûc BN GREENTOWN SEEKS INCREASE
top-level all-in pricing of 420bp via an
INTERESTûMARGINûOFû BPûOVERû,IBORûANDûANû The new loan, which was slightly Property developer GREENTOWN CHINA HOLDINGS
average life of 1.75 years. INCREASEDûFROMûTHEûORIGINALûTARGETûOFûc BN û is looking to further increase its dual-
pays an interest margin of 105bp over yen currency three-year club loan through an
Lenders are Standard Chartered, Bank of Libor. accession agreement, after closing the initial
East Asia, China Everbright Bank, Nanyang deal at approximately US$566m-equivalent
Commercial Bank, Tai Fung Bank, Chong Hing 4HEûDEALûRElNANCESûANûc BNû
YEARû with 14 banks.
Bank, CMB Wing Lung Bank, Fubon Bank (Hong Samurai loan which was completed in
Kong), Cathay United and East West Bank. February last year. Mizuho was also the MLA. HSBCûISûTHEûCOORDINATORûOFûTHEûlNANCING û
which was launched in April at a US$640m-
The borrower is SHUI ON DEVELOPMENT Separately, Chailease International equivalent target.
(HOLDING), while Shui On Land is the Financial Service (Singapore) increased its
guarantor. loan to US$168m from US$140m after The loan offers a top-level all-in pricing of
attracting 11 banks in general syndication. 298bp, based on an interest margin of 251bp
The borrower last tapped the loan over Libor/Hibor and an average life of 2.7
market in December 2019 for a reduced Mizuho was the MLAB of the borrowing, years.
53 MûTWO
YEARûRElNANCING û3TAN#HARTû which offers a top-level all-in pricing of
was also the sole MLAB of that facility, BPûBASEDûONûAûMARGINûOFû BPûOVERû Bank of East Asia, China Construction Bank
which offered a top-level all-in pricing of Libor. The borrower will pay any excess Asia, Chong Hing Bank, Hang Seng Bank, HSBC
BPûBASEDûONûAûMARGINûOFû BPûOVERû INTERESTûRATEûBEYONDûAû BPûDIFFERENCEû and Hua Xia Bank participated as mandated
Hibor/Libor. between TAIFX and Libor. lead arrangers and bookrunners.

International Financing Review June 5 2021 61

Freeport’s US$750m loan Pricing on the deal is around 75bp over
launched into senior Libor.

„ INDONESIA Borrower pays richer pricing than on parent’s larger deal Wipro said in March that it would buy
Capco for US$1.45bn to boost its offerings
Mining company FREEPORT INDONESIA has owned mining company MINING INDUSTRY FORûTHEûlNANCIALûSERVICESûINDUSTRY û
launched a US$750m five-year senior unsecured INDONESIA (MIND ID) and the Papuan
borrowing into senior syndication, paying richer government, while Freeport-McMoran holds the The acquisition is expected to close in the
pricing than a larger borrowing for its parent. remaining 48.8%. QUARTERûENDINGû*UNEû

Citigroup, HSBC and SMBC are the mandated Freeport Indonesia’s launch of the loan into 7IPRO SûLASTûLOANûWASûINû-ARCHû ûWHENû
lead arrangers, bookrunners and underwriters of senior syndication comes as MIND ID itself is raising ITûRAISEDûAû53 MûlVE
YEARûCLUBûDEAL
the borrowing, which has a greenshoe option of a dual-tranche borrowing of up to US$1.5bn that
up to US$250m. was launched into general syndication in April. In 2008, the IT giant obtained a US$400m
lVE
YEARûBULLETûCLUBûDEALûTHATûPAIDûAûMARGINû
The financing comprises a US$500m five-year Typically, a “clear-market” clause would OFû BPûOVERû,IBOR û
term loan (Facility A) and a US$250m five-year apply in such situations where borrowers
revolving credit facility (Facility B). from the same group are tapping the market IOC SENDS OUT RFP
simultaneously. The clause would require the
The deal pays interest margins of 212.5bp first borrower’s deal to close before the second State-owned INDIAN OIL CORP has sent out a
(onshore) and 187.5bp over Libor (offshore) and borrower’s financing was launched. REQUESTûFORûPROPOSALSûFORûAû53 MûlVE

has a weighted average life of 4.67 years across year loan.
the two facilities. However, the clear-market clause will not
apply to Freeport Indonesia’s borrowing as it will The deadline for responses is the end of
Banks have been invited to join as MLABs with not be launched into general syndication. June.
commitments of US$150m and above for all-in
pricing of 229.63bp (onshore) and 204.63bp MIND ID’s loan comprises a five-year term The deal follows a mandate IOC awarded
(offshore) via an 80bp fee. loan Tranche A of up to US$750m and a three- to State Bank of India in March to arrange
year revolver Tranche B of up to US$750m. It )NDIA SûlRSTûEXTERNALûCOMMERCIALûBORROWINGû
MLAs committing US$100m–$149m will earn pays top-level blended all-in pricing of 175.17bp linked to the secured overnight funding
all-ins of 226.42bp (onshore) and 201.42bp (onshore) and 165.17bp (offshore) based on a rate.
(offshore) with a 65bp fee. blended average life of 3.75 years.
4HEû53 MûlVE
YEARûTRANSACTIONûISûPARTû
Freeport Indonesia will use the proceeds The deal has already received a couple of OFûTHEûBROADERûlNANCIALûINDUSTRY SûMOVEû
for general corporate purposes and funding commitments, while several other lenders are away from the London interbank offered
the expansion of a copper smelter and refinery processing approvals. rate, which is expected to be phased out at
owned by Smelting, a joint venture between the end of 2021.
the company and Japanese firms including Bank Mandiri, BNP Paribas, DBS Bank, HSBC,
Mitsubishi Materials. Maybank, MUFG, Standard Chartered and SMBC IOC’s previous visit to the loan market
are the MLABs. was in February last year when it closed a
The facilities will also fund the construction of # Mû 53 M ûlVE
YEARûLOANûWITHûONEû
an electro-refinery, an acid plant and a precious Freeport Indonesia owns and operates the bank joining in general syndication.
metal refinery at the Java Integrated Industrial Grasberg minerals district in Papua, which
and Port Estate in Gresik, East Java. includes the largest gold mine and second- IOC’s wholly owned subsidiary, IndOil
largest copper mine in the world. Montney, is the borrower.
The Indonesian government has a 51.2% Prakash Chakravarti, Mirzaan Jamwal
equity interest in Freeport Indonesia via state- Bank of Baroda, State Bank of India,
Scotiabank and SMBC were the mandated
Bank of Communications OBU, Dah Sing Bank, 'REENTOWNû#HINAûISûRATEDû"A ""¦û lead arrangers and bookrunners of the deal,
Nanyang Commercial Bank, Ping An Bank and Tai (Moody’s/S&P). which offered a top-level all-in pricing of
Fung Bank joined as MLAs, while Bank of 115bp and an interest margin of 89bp over
Shanghai, China Citic Bank International and INDIA CDOR.
Mizuho came in as lead arrangers.
WIPRO GETS BRIDGE FOR UK BUY IOC’s previous Libor-linked loan was a
Several other banks are working on credit 53 MûTHREE
YEARûLOANûINû û"ANKûOFû
approvals to participate via the accession option. WIPRO has closed a US$1.05bn club loan with Baroda was said to have won the mandate
six banks for its acquisition of British on the deal with a bid of 107bp all-in pricing.
Proceeds of the loan will be used for technology consultancy Capco.
RElNANCINGûANDûGENERALûCORPORATEûPURPOSES Earlier that year, in February, IOC raised a
ANZ, BNP Paribas, Citigroup, HSBC, MUFG and MAMMOTHû53 BNûlVE
YEARûFACILITY ûITSû
Hong Kong-listed Greentown’s previous Standard Chartered are the lenders on the largest offshore loan on record, thanks to a
visit to the market was in January 2020 for a one-year bridge that consists of two facilities. BIG
TICKETûlNALûHOLDûFROMû-,!"û3") û7ESTPACû
53 M
EQUIVALENTûTHREE
YEARûCLUBûLOANû Citigroup was the coordinating bank. Banking Corp was the other MLAB on the
from eight lenders, including HSBC as the deal, which attracted 17 more banks in
coordinator. A UK subsidiary of the India- general syndication.
headquartered IT services company is the
That deal pays a margin of 248bp over Libor. borrower on a US$760m facility, while a US That loan paid a top-level all-in pricing of
State-owned China Communications subsidiary is the borrower on another 114bp based on an interest margin of 100bp
Construction Group and Hong Kong’s Wharf US$290m piece. over Libor and an average life of 4.75 years.
Holdings are strategic investors in
Greentown China, holding approximately JAPAN
29% and 25% stakes, respectively.
EPS RAISES MBO LOAN

Tokyo-listed pharmaceuticals company EPS
HOLDINGSûISûRAISINGûAûc BNû 53 M ûLOANû
to back its planned management buyout.

62 International Financing Review June 5 2021

LOANS EMEA

MUFG is the sole lender of the borrowing, Commercial Bank have come in as MLAs. US$185m syndicated loan from the
which is split into four tranches, according MLAB Standard Chartered Bank is the International Finance Corp and
to Shinyou, a special purpose company international banks in November 2017.
owned by EPS Holdings’ chairman, Hao Yan. coordinator of the senior unsecured bullet
loan, which has a greenshoe option of up to 4HATûlVE
YEARûlNANCINGûPACKAGEû
The deal comprises a ¥22bn seven-year US$200m. comprised a US$100m portion from the IFC
AMORTISINGûTERMûLOAN ûAûc BNûSEVEN
YEARû and a US$85m piece from Cathay United
bullet term loan, a ¥8bn four-month bridge 4HEûlNANCINGûCOMPRISESûAû53 Mû Bank, Industrial and Commercial Bank of
loan A, and a ¥2bn four-month bridge THREE
YEARûTRANCHEûANDûAû53 MûlVE
YEARû China Hong Kong and Kiatnakin Bank.
loan B. PORTION ûOFFERINGûINTERESTûMARGINSûOFû BPû
and 162bp over Libor, respectively. EUROPE/MIDDLE
Shinyou launched a ¥1,800 per share offer EAST/AFRICA
on May 28. The offer ends on July 8. The deal pays a blended margin of
142.90bp based on a pro-rata participation FINLAND
Aichi-based peer Suzuken is providing across both facilities, with a blended
¥2.869bn through a 7.5-year bond sale and REMAININGûTENORûOFû ûYEARS SUOMINEN EXTENDS SLL
c BNûINûEQUITY ûWHILEûPRIVATEûEQUITYû
fund MBK Partners is investing ¥4bn in Lead arrangers with commitments of SUOMINEN, which produces nonwovens for
equity to back the MBO. 53 MûANDûABOVEûEARNûTOP
LEVELûALL
INû hygiene wipes, has extended the maturity of
PRICINGûOFû BPûFROMûAûBLENDEDû BPû a €100m sustainability-linked loan it agreed
EPS Holdings will be delisted once the fee. in July 2020 by a further year to July 2024.
MBO is completed.
Arrangers participating with US$20m– 4HEûEXTENSIONûISûTHEûEXERCISEûOFûTHEûlRSTûOFû
THAILAND MûWILLûRECEIVEûANûALL
INûOFû BPûVIAûAû two one-year extension options on the facility.
BPûFEE ûWHILEûLEADûMANAGERSûTAKINGû
CAL-COMP TO MANDATE US$10m–$20m receive 152.78bp all-in with 4HEûFACILITYûISûUNDRAWNûASûOFû-AYû û
Aû BPûFEE 4HEûlNANCINGûHADûANûINITIALûTHREE
YEARû
CAL-COMP ELECTRONICS (THAILAND) is expected to maturity with two additional one-year
award a sole mandate to E.Sun Commercial In senior syndication the deal offered a extension options.
BankûFORûAû53 MûSUSTAINABILITY
LINKEDû blended all-in margin of 165bp. The margin increases or decreases
loan. depending on Suominen meeting two
The Vietnamese private-sector bank will sustainability key performance indicators:
General syndication for the three-year use the proceeds from the new-money loan an increase in the sales of sustainable
loan is expected to be launched in July at the for general corporate purposes. products and a reduction of greenhouse gas
earliest. emissions.
Techcombank made its offshore loan Danske Bank and Nordea are lenders on the
The SLL may carry a two-year extension market debut last year, raising US$500m lNANCING ûWHICHûINCLUDESûLEVERAGEûANDû
option. from a three-year facility that was the GEARINGûlNANCIALûCOVENANTS
LARGESTûFORûAûlRST
TIMEû6IETNAMESEûBANKû
&UNDSûAREûFORûRElNANCINGûANDûWORKINGû borrower. FRANCE
capital purposes.
4HEûLOANûOFFEREDûAûTOP
LEVELûALL
INûOFû BPû FAURECIA SWITCHES TO SLL
The company had sent a request for based on an interest margin of 150bp over
PROPOSALSûINû&EBRUARYûFORûAû53 MûLOAN Libor. Auto parts maker FAURECIA has amended and
extended its existing syndicated credit line,
In December 2019, Cal-Comp Electronics The deal size was increased from a increasing the facility to €1.5bn from €1.2bn
(Thailand) and its special purpose vehicle, 53 MûTARGETûAFTERûATTRACTINGû ûBANKSûINû ANDûCONVERTINGûTHEûlNANCINGûINTOûAû
Logistar International Holding, completed syndication. sustainability-linked loan.
an amendment and extension of a US$216m
three-year loan signed in 2017. 4ECHCOMBANKûISûRATEDû"A ""¦û -OODY S 4HEûMATURITYûOFûTHEûlNANCINGûHASûBEENû
S&P). EXTENDEDûTOû-AYû ûFROMû*UNEû ûWITHû
That loan pays an interest margin of two additional one-year extension options.
105bp over Libor. The borrowers will pay VIB WRAPS US$260m LOAN
any excess interest rate beyond a 40bp Terms and conditions have also been
difference between TAIFX and Libor. VIETNAM INTERNATIONAL COMMERCIAL JOINT STOCK improved. Interest on the facility is now
linked to the achievement of a reduction of
Cal-Comp Electronics is a subsidiary of BANK has increased its three-year loan to Faurecia’s CO2 emissions between 2019 and
New Kinpo Group, a Taiwan-based company US$260m after attracting nine lenders. 2025, with the company aiming at being
engaged in electronic manufacturing CO2-neutral for its Scope 1 and 2 emissions.
services and original design manufacturing. The Asian Development Bank and United
Overseas Bank were the mandated lead Faurecia’s roadmap to CO2 neutrality,
VIETNAM arrangers and bookrunners on the deal, which was approved by the Science Based
which comprises a B loan that was increased Targets initiative in November 2020, is
TECHCOMBANK HITS GENERAL to US$160m from an initial US$100m. consistent with the reduction required to
keep global warming to 1.5°C, the goal of
TECHCOMBANK has launched its US$500m dual- Mandated lead arrangers are Bank of the Paris Agreement.
tranche loan into general syndication after Communications, ICBC and State Bank of India.
attracting half a dozen banks at the top. Lead arrangers are Banque Internationale de
Commerce, Kiatnakin Phatra Bank and
Cathay United Bank, Maybank, State Bank of Kasikornbank. Arrangers are First Commercial
India, and Taishin International Bank have Bank, Hua Nan Commercial Bank and Taiwan
joined in senior syndication as the Cooperative Bank.
mandated lead arrangers and bookrunners,
while Industrial and Commercial Bank of China 4HEûlNANCINGûALSOûINCLUDESûAû53 Mû
Hong Kong branch and Mega International senior unsecured A loan from the ADB.

The new-money bullet loan offered a top-
level all-in of 226.67bp based on an interest
margin of 210bp over Libor.

The borrower, also known as VIETNAM
INTERNATIONAL BANK, previously raised a

International Financing Review June 5 2021 63

Natixis acted as environmental, social and Citigroup coordinated the facilities, while The facility agent is mBank while Bank
governance coordinator and global Rabobank was sustainability coordinator, Polska Kasa Opieki is security agent together
COORDINATORûONûTHEûlNANCING together with ING as facility agent and Royal with Bank Handlowy w Warszawie, Bank
Bank of Canada as active bookrunners and Millennium, BNP Paribas, PKO Bank and
4HEûlNANCINGûWASûORIGINALLYûAGREEDûINû mandated lead arrangers. Santander Bank as lenders.
December 2014 and amended in June 2016
and June 2018. Viterra signed a US$2.955bn one-year RCF SLOVENIA
in May 2020, replacing an existing
BNP Paribas, Commerzbank, Credit US$2.94bn facility from May 2019. TELCO SIGNS €130m LOAN
Agricole COB, CM-CIC, HSBC, Natixis and
Societe Generale were bookrunners and The company also extended the maturity TELEKOM SLOVENIAûHASûSIGNEDûAûõ MûSEVEN

MANDATEDûLEADûARRANGERSûONûTHEûlNANCING of US$540m of an existing US$600m three- year syndicated loan, provided by a group of
year RCF arranged in May 2019 by an banks comprising Nova Ljubljana as
IRELAND additional year. coordinator, Intesa Sanpaolo, SKB and UniCredit.

KINGSPAN COMPLETES SLL The RCFs paid margins of 75bp and 60bp The facility comprises three tranches: a
over Libor, respectively. €50m tranche A which will be paid in
Insulation company KINGSPAN has completed equal semi-annual instalments, a €50m
Aûõ MûlVE
YEARûSUSTAINABILITY
LINKEDû WATERLAND INKS ESG BRIDGE tranche B which will be repaid in one
revolving credit facility. LUMPûSUMûANDûAûõ MûTRANCHEû#ûTHATûHASûAû
0RIVATEûEQUITYûlRMûWATERLAND has agreed a combination of semi-annual and lump
4HEûlNANCINGûHASûAûlVE
YEARûMATURITYû €500m equity bridge facility linked to sum repayments.
with two additional one-year extension environmental, social and governance
options and replaces an existing €451m RCF targets for its latest fund, Waterland Private The loan will be used to repay €100m of
ANDûõ MûOFûACQUISITIONûFACILITIES Equity Fund VIII. bonds due this month with a portion also
earmarked for investments.
Pricing on the facility is linked to the The facility is the latest private equity
achievement of Kingspan’s commitments to SUBSCRIPTIONûlNANCINGûDEALûTOûLINKûMARGINSû SPAIN
its 10-year Planet Passionate sustainability to ESG targets as sustainability rapidly
programme, which was set up in 2020 becomes a core focus for investors and ATRESMEDIA GOES SUSTAINABLE
aiming to tackle global issues around banks.
climate change, circularity and protection Audio visual media group ATRESMEDIA has
of the natural world. 4HEûlNANCINGûPROVIDESû70%&û6))) ûWHICHû COMPLETEDûTHEûRElNANCINGûOFûITSûõ Mû
closed with €2.5bn of commitments, with syndicated corporate loan, covering it into a
4HEûlNANCINGûWASûAGREEDûWITHûAûGROUPûOFû THEûmEXIBILITYûTOûMANAGEûITSûINVESTMENTSû SUSTAINABLEûlNANCING
10 international banks. while matching investors’ capital calls
frequency, ensuring sound management of 4HEûLOANûISûTHEûlRSTûSUSTAINABLEûlNANCINGû
NETHERLANDS working capital and liquidity. closed by a media company in Spain and one
OFûTHEûlRSTûINûTHEûSECTORûINû%UROPE
VITERRA SIGNS US$4bn SLLS Margins are tied to a set of ESG key
performance indicators, one tied to the Costs are lined to the company’s
!GRICULTURALûCOMMODITIESûlRMûVITERRA, MANAGEMENTûCOMPANYûANDûOTHERSûREmECTINGû performance on two social key performance
previously Glencore Agriculture, has signed Waterland’s strategy to have portfolio indicators and one environmental KPI.
two separate senior unsecured companies making a positive impact on ESG.
sustainability-linked revolving credit The three KPIs, which will be revised
facilities totalling US$4.085bn. 4HEûlNANCINGûISûBEINGûPROVIDEDûBYûNatixis, annually, comprise advertising space
ABN AMRO and Rabobank. PROVIDEDûFREEûOFûCHARGEûTOûNON
PROlTû
The facilities, which were raised through organisations; television content
subsidiary Viterra Finance BV, were “We are rapidly moving towards a world accessibility via subtitles; and Atresmedia’s
launched on March 26 for a total of WHEREINûALLûlNANCEûISûLINKEDûTOû score in the climate change report issued by
53 BN ûGARNERINGûSTRONGûINTERESTûFROMû sustainability in one way or another,” the Carbon Disclosure Project.
Viterra’s relationship banks and closing Maarten Biermans, head of sustainable
more than 25% oversubscribed. The facilities capital markets at Rabobank said. CaixaBank, BBVA and Santander acted as
were subsequently increased to US$4.085bn joint sustainability coordinators, with
with lender commitments scaled back. “When it comes to the integration of ESG CaixaBank acting as agent.
in private equity most are unaware that
4HEûlNANCINGûCOMPRISESûAû
MONTHû2#&û many players in this sector have already External consultant EY has provided an
credit facility with a one-year extension option actively been involved in precisely doing assurance report over the selected KPIs,
and a one-year term-out option; and a three- that for some time.” CONlRMINGûTHATûTHEûTRANSACTIONûISûALIGNEDû
year RCF with two one-year extension options. with the Sustainability Linked Loan
POLAND Principles 2019.
Margins on the facilities are linked to Viterra’s
sustainability targets, including a reduction of CCC AGREES Z886m LOAN TURKEY
greenhouse gas emissions, a reduction of water
and fossil energy consumption, increased Footwear maker and retail company CCC has DENIZBANK SIGNS US$410m LOAN
traceable-to-origin soy sourced in South agreed terms on a Z886m (US$240m) loan as
America, and achieving safety targets. ITûLOOKSûTOûRElNANCEûITSûDEBTûANDûPUTûAûLONG
DENIZBANK has signed a US$410m-equivalent
TERMûlNANCINGûSTRUCTUREûINûPLACE syndicated loan with a group of 16 banks
If Viterra meets these targets, it will from 12 countries.
reinvest its interest savings from these 4HEûlNANCINGûCOMPRISESûAû: MûFOUR

credit facilities into additional sustainability year term loan and a Z448.4m three-year
initiatives within the company. revolving working capital facility. An
optional third facility may be granted by
lenders under certain conditions.

64 International Financing Review June 5 2021

LOANS EMEA

4HEûLOANûCOMPRISESûAûõ Mû
DAYû 4HEûlNANCING ûWHICHûWASûAGREEDûWITHûAû credit for investments. Drawings on the
TRANCHE ûAû53 Mû
DAYûTRANCHEûANDûAû group of the company’s relationship banks, facility will be repaid through equity

DAYû2MB MûTRANCHE includes two one-year extension options and fundraisings.
replaces two existing facilities: a £225m
4HEûLOANûWILLûBEûUSEDûTOûlNANCEû facility maturing in March 2022 and a 4HEûlVE
YEARû2#&ûPAYSû BPûOVERûTHEû
DenizBank’s customers’ foreign trade £550m facility, the majority of which relevant reference rate and includes an
transactions, particularly in tourism, MATURESûINû!UGUSTû additional uncommitted £70m incremental
shipping, export-oriented industry and accordion tranche giving the company
agriculture. +INGlSHERûWILLûBENElTûFROMûLOWERûINTERESTû INCREASEDûmEXIBILITYûFORûLARGERûTRANSACTIONS û.Oû
RATESûONûTHEûFACILITYûIFûITûDELIVERSûSPECIlCûTARGETSû commitment fee is payable on the accordion.
The bank was last in the market in aligned to its Responsible Business plan.
&EBRUARY ûWHENûITûSIGNEDûAû53 M
ING Bank, DZ Bank, KfW IPEX-Bank and
equivalent multi-tranche syndicated loan The company’s Responsible Business SMBCûAREûPROVIDINGûTHEûlNANCING
WITHûAûGROUPûOFû ûBANKS commitments, linked to the credit facility’s
targets around tackling climate change, The previous facility was provided by ING,
That facility was coordinated by Credit include creating more forests than it uses DZ Bank, and KfW IPEX-Bank in January 2018.
Suisse and Emirates NBD Capital, with the ANDûlXINGûBADûHOUSING
International Finance Corporation providing 4HATûFOUR
YEARûlNANCINGûPAIDû BPûOVERû
US$150m and the European Bank for The facility targets include a reduction of Libor and also included a £70m accordion
Reconstruction and Development providing Scope 1 and 2 emissions in line with the tranche.
US$100m. company’s target to deliver a 1.5°C science-
based carbon reduction target by full-year MONDI BAGS €750m SLL
The loan, which was provided in dollars 2025–26, a more ambitious target than a
and euros, has maturities of up to seven previous target aimed at actions to keep London-listed packaging and paper
YEARSûANDûPAYS ûONûAVERAGE û BPûOVERû global warming to 2°C. company MONDI has signed a €750m
Libor. revolving credit facility with a margin
The credit facility also targets 100% linked to the company’s sustainability
UK sustainable wood and paper for all the performance.
COMPANY SûPRODUCTSûBYû n û+INGlSHERû
GROSVENOR INKS £1.1bn SLL has a current level of 80.7%. 4HEûSELF
ARRANGEDûlNANCING ûWHICHûHASûAû
lVE
YEARûMATURITYûWITHûTWOûONE
YEARû
Privately owned international property +INGlSHERûISûALSOûCOMMITTEDûTOûHELPûMOREû EXTENSIONûOPTIONS ûRElNANCESûTHEûCOMPANY Sû
company GROSVENOR has signed a £1.1bn than 2 million people whose housing needs existing €750m RCF that was due to mature
syndicated revolving credit facility with a are greatest in the community, double its in July 2022.
margin linked to sustainability previous commitment.
performance. The facility incorporates core
The target is measured by the number of sustainability targets linked to Mondi’s
The dual-tranche multi-currency PEOPLEûWHOûDIRECTLYûBENElTûFROMû !CTIONû0LANûTOûMEETûITSû ûSUSTAINABILITYû
lNANCING ûWHICHûREPLACESûANDûCENTRALISESû +INGlSHER SûCOMMUNITYûCONTRIBUTIONSûSINCEû goals, which are focused on three action
existing undrawn bilateral loan facilities, full-year 2016–17. Over 790,000 people have areas: circular-driven packaging and paper
will be used for general corporate purposes, SOûFARûBENElTEDûFROMûTHEûCOMPANY Sû solutions, created by empowered people,
providing medium-term back-up liquidity. donations since 2016/17. and taking action on climate.

The RCF incorporates sustainability ICBC LONDON CLOSES TL The areas are aligned with the UN
mechanics, including the minimising the Sustainable Development goals.
GROUP SûENVIRONMENTALûFOOTPRINT û3PECIlCû ICBC (LONDON) and ICBC LONDON BRANCH,
metrics and targets will be developed and subsidiaries of Industrial and Commercial Margins on the facility will be adjusted
incorporated within the next 12 months. Bank of China, have signed a US$948m- according to Mondi’s performance against
equivalent dual-currency term loan. SPECIlEDûSUSTAINABILITYûTARGETS
Grosvenor has previously committed to
achieving net-zero carbon operational 4HEûSELF
ARRANGEDûMULTI
TRANCHEûlNANCINGû A group of 10 banks is providing the
emissions from all its directly managed COMPRISESû53 MûANDûa MûWITHû lNANCING ûBarclays, BBVA, Bank of America, BNP
BUILDINGSûGLOBALLYûBYû ûANDûTOûWORKû maturities of two and three years for each Paribas, Commerzbank, Deutsche Bank, Erste
towards all buildings, directly and indirectly currency. Group, Raiffeisen Bank International, SEB and
managed, being embodied and UniCredit.
operationally net-zero across its portfolio by 4HEûlNANCINGûLAUNCHEDûTOûAûTARGETEDû
2050. group of ICBC’s relationship banks and EMEA LOANS BOOKRUNNERS – FULLY
CLOSEDûSIGNIlCANTLYûOVERSUBSCRIBEDûWITHû
NatWest, Santander and SMBC are lenders scaled back. SYNDICATED VOLUME
coordinators and bookrunners on the BOOKRUNNERS: 1/1/2021 TO DATE
lNANCING Commitments were received from a total
of 15 banks, including HSBC as facility agent Managing No of Total Share
Bank of China, Bank of East Asia, Bank of Nova and Wells Fargo as documentation agent. bank or group issues US$(m) (%)
Scotia, BNP Paribas, Capital One, Credit Dentons acted as legal counsel to ICBC.
Industriel et Commercial, DBS Bank and Societe 1 BNP Paribas 82 19,698.39 8.3
Generale are mandated lead arrangers. BBGI AGREES £230m REFI 2 Credit Agricole 67 15,773.67 6.7
3 Barclays 26 12,983.22 5.5
KINGFISHER AGREES SLL London-listed project portfolio investment 4 JP Morgan 40 11,423.70 4.8
company BBGI GLOBAL INFRASTRUCTURE has 5 Goldman Sachs 32 11,077.50 4.7
Home improvement retailer KINGFISHER has SECUREDûAûa MûMULTI
CURRENCYûREVOLVINGû 6 Deutsche Bank 38 10,333.91 4.4
signed a £550m three-year revolving credit credit facility to replace its existing £180m 7 UniCredit 47 9,903.54 4.2
facility linked to sustainability and RCF that was due to mature in January 2022. 8 Santander 51 9,782.68 4.1
community-based targets. 9 HSBC 41 9,653.15 4.1
4HEûlNANCINGûWILLûBEûPRIMARILYûUSEDûTOû 10 SG 42 9,652.59 4.1
fund acquisitions and provide letters of 248 236,657.60
Total

Proportional credit SDC code: R17
Source: Refinitiv

International Financing Review June 5 2021 65

NORTH AMERICA Diversity among the company’s US-based TRITON BAGS US$1.2bn TL
executives is targeted to increase by
UNITED STATES BETWEENû ûANDû ûDURINGûlSCALûYEARû û Freight container leasing company TRITON
rising to between 5% and 6% for 2025. INTERNATIONAL has signed a secured US$1.2bn
HP TIES LOAN TO EXEC DIVERSITY lVE
YEARûTERMûLOAN
4HEûTERMINATEDû53 BNûDUEû ûREVOLVER Sû
Electronics company HP has signed a margin over Libor ranged from 87.5bp to Subsidiary company Triton Container
sustainability-linked US$5bn-equivalent 162.5bp, and its commitment fee was between International is the borrowing entity of the loan.
lVE
YEARûREVOLVINGûCREDITûFACILITYûWITHû 7bp and 25bp, based on HP’s credit rating,
PRICINGûINmUENCEDûBYûTHEûINCREASINGû when it was signed in March 2018. The facility, which may be increased by
diversity of the company’s US-based US$200m, replaces the company’s US$1bn
executives and its reduction of greenhouse Financial covenants restrict HP’s total TERMûLOANûDATEDû.OVEMBERû û û4HATûDEALû
gas emissions. leverage ratio to a maximum of 4 times, and was repaid in full and terminated on May 27.
its consolidated Ebitda to consolidated net
The facility may be increased by up to INTERESTûEXPENSEûTOûATûLEASTû ûTIMES The amortising loan pays a margin over
US$1bn and extended by two one-year Libor of between 125bp and 162.5bp based
periods. It is also available to be drawn in JP Morgan is the administrative agent and on the borrower’s senior secured debt rating
euros and sterling. BNP Paribas was the sustainability from S&P.
structuring agent. The other lenders are
(0ûHASûTERMINATEDûITSû53 BNû
DAYû Bank of America, Goldman Sachs, HSBC, Wells Financial covenants restrict the borrower’s
revolver dated May 29 2020, and its Fargo, Citigroup, Morgan Stanley, MUFG, Banco funded debt ratio to a maximum of 4 times,
53 BNûlVE
YEARûREVOLVERûDUEûTOûMATUREûINû Santander, US Bank, Standard Chartered, Societe its consolidated tangible net worth to at least
Generale, ING, Bank of China, Credit Agricole CIB 53 M ûANDûITSûMINIMUMûlXEDûCHARGEû
and Credit Suisse. coverage ratio to 1.25 times.
Pricing is initially based on the
COMPANY SûDEBTûRATING û&ORû! !n !nûORû HP is rated Baa2 by Moody’s, BBB by S&P 4HEûLOANûISûSECUREDûBYûAûlRSTûPRIORITYûLIENû
higher the commitment fee is 9bp with a and BBB+ by Fitch. on Triton Container’s assets.
MARGINûOFû BPûOVERû,IBORûANDû BPû
over Sonia. For Baa1/BBB+/BBB+ it is 10bp, PEPSICO SIGNS RCFS PNC Bank is the administrative agent.
112.5bp and 115.76bp; for Baa2/BBB/BBB it Triton Container’s senior secured debt is
ISû BP û BPûANDû BP ûFORû"AA Beverage company PEPSICO has signed two rated BBB– by S&P. Triton International’s
"""n """nûITûISû BP û BPûANDû unsecured revolving credit facilities corporate rating is BBB–.
140.76bp; for Ba1/BB+/BB+ or lower it is totalling US$7.5bn.
22.5bp, 162.5bp and 165.76bp. FMC AMENDS RCF
4HEûFACILITIESûCOMPRISEûAû53 BNû
DAYû
The RCF’s margin may be increased or REVOLVERûANDûAû53 BNûlVE
YEARûREVOLVER Agricultural sciences company FMC has
decreased by 2.5bp depending on HP’s amended and restated an unsecured
achievement of targets linked to increased 0EPSI#OûHASûTERMINATEDûITSû53 BNû 53 BNûlVE
YEARûREVOLVINGûCREDITûFACILITY
representation of Black and African
DAYûREVOLVERûDATEDû*UNEû û ûANDûITSû
Americans among its US-based executives, 53 BNûlVE
YEARûREVOLVERûDATEDû*UNEû û The facility, for general corporate
and by a further 2.5bp if goals related to 2019. Neither of the terminated facilities purposes, can be increased to US$2.25bn
greenhouse gas emission reductions are featured any outstanding borrowings. and may be extended by one year. On the
met. same date, the company also amended
4HEûNEWû
DAYûREVOLVER SûSIZEûCANûBEû lNANCIALûCOVENANTSûAPPLICABLEûTOûITSûTERMû
The commitment fee may be similarly increased up to US$4.5bn and its maturity loan dated May 2 2017.
altered by 0.5bp for each metric, delivering MAYûBEûEXTENDEDûBYûANûADDITIONALû ûDAYS
a maximum pricing change of 5bp for the Pricing of the revolver is based on the
margin and 1bp for the commitment fee. 4HEûlVE
YEARûREVOLVER SûSIZEûMAYûALSOûBEû borrower’s debt rating. For A2/A or higher
increased up to US$4.5bn and, once a year, the facility fee is 7bp with a margin of
AMERICAS LOANS BOOKRUNNERS – FULLY the company may request a one-year BPûOVERû,IBOR ûFORû! !nûITûISû BPûANDû
extension period. 91bp; for Baa1/BBB+ it is 11bp and 101.5bp;
SYNDICATED VOLUME for Baa2/BBB it is 12.5bp and 112.5bp; for
BOOKRUNNERS: 1/1/2021 TO DATE Both facilities pay a margin of 62.5bp and "AA """nûITûISû BPûANDû BP ûANDûFORû
are for general corporate purposes. Ba1/BB+ or lower it is 25bp and 150bp.
Managing No of Total Share #OMMITMENTûFEESûAREû BPûFORû ûDAYSû
bank or group issues US$(m) (%) ANDû BPûFORûlVEûYEARS The opening facility fee is 12.5bp.
Pricing is unchanged from FMC’s
1 Bank of America 547 167,217.09 13.7 4HEûMARGINûFORûTHEûREPLACEDû
DAYû 53 BNûlVE
YEARûREVOLVERûTHATûWASû
2 JP Morgan 481 145,834.66 11.9 revolver was 75bp over Libor, and the drawn amended and restated in May 2019.
3 Citigroup 248 91,262.55 7.5 COSTûOFûTHEûREPLACEDûlVE
YEARûFACILITYûWASû Additional borrowers are FMC Finance BV
4 Wells Fargo 340 88,510.71 7.2 BASEDûONûTHEûCOMPANY SûONEûANDûlVE
YEARû and FMC Chemicals Netherlands BV, both
5 Goldman Sachs 189 54,765.20 4.5 #$3ûWITHûAûmOORûOFû BPûANDûAûCAPûOFû BP Netherlands-based subsidiaries of FMC.
6 Barclays 218 52,197.39 4.3 Covenants restrict FMC’s maximum
7 Credit Suisse 176 40,137.46 3.3 Commitment fees are unchanged from LEVERAGEûRATIOûTOû ûTIMESûUNTILûTHEûQUARTERû
8 Morgan Stanley 108 40,080.53 3.3 the terminated agreements. ENDINGû3EPTEMBERû ûANDûTOû ûTIMESûFORûTHEû
9 RBC 185 38,668.99 3.2 QUARTERûENDINGû$ECEMBERû ûANDûONWARDS û
10 Deutsche Bank 154 34,237.77 2.8 4HEû
DAYûREVOLVERûMAYûBEûCONVERTEDûTOû The company’s minimum interest coverage
1,618 1,224,509.79 a term loan, subject to a 50bp fee. RATIOûMUSTûALSOûBEûATûLEASTû ûTIMES
Total Citigroup is the administrative agent.
Citigroup is the administrative agent for Additional lenders are Bank of America, BNP
Proportional credit SDC code: R7 both deals. Paribas, CoBank, JP Morgan, SMBC, TD Bank,
Source: Refinitiv Banco Santander, Truist Bank, US Bank, Bank of
Additional lenders to both facilities are Bank China, Citizens Bank, Rabobank, Mizuho Bank,
of America, JP Morgan, BNP Paribas, Deutsche Bank, PNC Bank and Wells Fargo.
Goldman Sachs, HSBC, Mizuho Bank, Morgan
Stanley, BBVA, Barclays, TD Bank, ANZ, Bank of
China, ING, Northern Trust, PNC Bank, RBC, Societe
Generale CIB, UBS and US Bank.

PepsiCo is rated A1 by Moody’s and A+ by S&P.

66 International Financing Review June 5 2021

LOANS NORTH AMERICA

The amended term loan shares the same Covenants of the Pinnacle West facility Mandated lead arrangers committing
leverage ratio and interest coverage require the company to maintain a certain US$50m will receive an upfront fee of 40bp
restrictions as the revolver. percentage ownership of APS and restrict its and arrangers committing US$25m will
debt-to-capitalisation ratio. The APS facilities RECEIVEûANûUPFRONTûFEEûOFû BP
FMC is rated Baa2 by Moody’s and BBB– by also contain covenants relating to APS’ debt
S&P. to capitalisation ratio. There are four mandated lead arranger
POSITIONSûAVAILABLE ûOFFEREDûONûAûlRSTûCOMEû
TE CONNECTIVITY EXTENDS RCF 0INNACLEû7ESTûISûRATEDû! ûBYû-OODY SûANDû lRSTûSERVEDûBASIS
A- by S&P. Its senior unsecured debt is rated
Electronics company TE CONNECTIVITY has BBB+ by S&P. BBVA, Bank of America and Scotiabank are
amended and extended its US$1.5bn joint lead arrangers and bookrunners. Bank
revolving credit facility. APS is rated A2 by Moody’s and A– by S&P. of America is the administrative agent.
S&P also rates APS’s senior unsecured debt A–.
The facility will now mature on June 1 Comercial Chedraui subsidiary Bodega
ûEXTENDEDûFROMû.OVEMBERû û û BOOZ ALLEN SEEKS AMENDMENT Latina Corp is the borrowing entity,
and it includes provisions related to the guaranteed by Comercial Chedraui, Tiendas
replacement of Libor as a reference rate. IT consulting company BOOZ ALLEN HAMILTON is Chedraui, and Inmobiliaria Kira.
SOFR or another alternative reference rate INûTHEûMARKETûWITHûAûRElNANCINGûOFûITSûCREDITû
will replace Libor. facilities, led by Bank of America. &UNDSûWILLûALSOûBEûUSEDûTOûRElNANCEûDEBTû
of Smart & Final.
At signing in November 2018, the deal’s The company intends to extend the
facility fee ranged from 5bp–12.5bp and its maturities of the facilities and increase its Financial covenants restrict the
margin over Libor from between 57.5bp and US$500m revolver to US$1bn. The maximum leverage ratio to 2.5 times and
100bp, based on the borrower’s debt rating. US$1.29bn size of the term loan is the same the minimum consolidated interest
as its existing size. Both facilities will feature coverage ratio to 4.5 times.
Subsidiary company Tyco Electronics lVE
YEARûTENORS ûEXTENDINGûTHEIRûMATURITIESû
Group is the borrower, guaranteed by by around three years. The term loan is Smart & Final is being bought for
parent company TE Connectivity. CURRENTLYûDUEûTOûMATUREûINû*ULYû approximately US$620m from funds
MANAGEDûBYûAFlLIATESûOFû!POLLOû'LOBALû
Bank of America is the administrative agent. Opening drawn pricing is 150bp over Management.
Credit Suisse is a new lender to the facility, Libor and undrawn it is 25bp, unchanged.
and three banks, MUFG Bank, Wells Fargo Bank LEVERAGED LOANS
and Morgan Stanley have exited the The term loan’s 5% per year amortisation
agreement. is also unchanged. UNITED STATES

Revised allocations are as follows on The deal features an accordion option of the PROOFPOINT MARKETS LBO LOANS
lender commitments: Bank of America, greater of either US$878m or 100% of the
Deutsche Bank, JP Morgan, BNP Paribas, company’s consolidated Ebitda. The accordion Cyber security provider PROOFPOINT
Citigroup and Goldman Sachs with US$154m may be further increased but is limited to a LAUNCHEDûAû53 BNûINûLOANSûTHATûWILLû
each; Bank of China, Barclays Bank, ICBC and NETûSENIORûSECUREDûLEVERAGEûRATIOûOFû ûTIMES support its acquisition by private equity
Bank of Nova Scotia with US$78m each; and lRMû4HOMAû"RAVO
Commerzbank, Credit Suisse, HSBC Bank, Intesa There is also a US$500m cap on cash
Sanpaolo, SMBC and Northern Trust with netting. 4HEûlNANCINGûCOMPRISESûAû53 BNû
US$44m each. lRST
LIENûTERMûLOANû"ûANDûAû53 Mû
4HEû,IBORûmOORûISûUNCHANGEDûATû privately placed second-lien term loan.
Tyco Electronics Group is rated Baa1 by Financial covenants restrict the maximum
Moody’s and its senior unsecured debt is consolidated net-total-leverage ratio to 4 The seven-year term loan B is offered at
rated A– by S&P. times, and the minimum consolidated net BPn BPûOVERû,IBORûWITHûAû ûmOORû
INTERESTûCOVERAGEûRATIOûTOû ûTIMES and an OID of 99.
PINNACLE WEST NETS RCFS The maximum permitted total leverage
ratio may step up by 0.5 times for 12 months It comes with 101 soft call protection for
Utility company PINNACLE WEST CAPITAL CORP following an acquisition. six months and amortises at 1% per annum.
and its subsidiary ARIZONA PUBLIC SERVICE CO Booz Allen Hamilton is rated Ba1 by
have signed facilities totalling US$1.2bn. Moody’s and BB+ by S&P. A ticking fee that is 50% of the margin
will kick off on day 61 after the deal closes.
The unsecured facilities comprise a LATIN AMERICA This will increase to 100% of the margin on
53 MûlVE
YEARûREVOLVINGûCREDITûFACILITYû day 91.
borrowed by Pinnacle West, and two MEXICO
53 MûlVE
YEARûREVOLVERSûBORROWEDûBYû Goldman Sachs is the lead bookrunner.
APS. COMERCIAL CHEDRAUI TAPS Macquarie, Bank of America, RBC, Barclays,
HSBC, Jefferies, UBS, Antares Capital, Ares,
Barclays Bank is the administrative Supermarket chain GRUPO COMERCIAL CHEDRAUI BMO, Golub, Mizuho, KKR Capital Markets,
agent for the three new facilities and held has launched a senior unsecured US$620m Stone Point and Thoma Bravo Credit are also
the same role for the terminated deals. lVE
YEARûTERMûLOANûTOûSYNDICATIONûTOûSUPPORTû bookrunners.
its acquisition of warehouse grocery
Pricing for the three revolvers is based on company Smart & Final. The all-cash acquisition values
the borrowers’ senior unsecured debt 0ROOFPOINTûATûAPPROXIMATELYû53 BN
ratings as well as the achievement of The bullet loan pays a margin of 155bp
environmental targets and employee health over Libor, and banks have been invited to Wastewater and storm drainage
and safety objectives. join at two levels. distributor CORE & MAIN is in the market with
a US$1.5bn term loan B that, together with
Barclays and Mizuho Bank are co- cash from balance sheet and proceeds
sustainability structuring agents for the from an IPO, will repay existing debt and
RCFs. Co-documentation agents are Bank of related redemption premiums.
America, BNP Paribas, JP Morgan, MUFG, Truist
Bank and Wells Fargo.

International Financing Review June 5 2021 67





New twist in Libor fallback Citigroup is the lead-left arranger and the
language may complicate administrative agent. Goldman Sachs, Bank of
transition America, RBC, and US Bank are joint lead
arrangers. Blackstone is a co-manager.
„ US Provision allows borrowers to transition to rates outside of SOFR
The loan is guaranteed by the
New loans with language allowing companies Yield Index, for example. As a lender, that’s not borrower’s holding company, in addition
to switch to a credit-sensitive term rate before a a great position to be in because the hardwired to existing and future, direct and indirect,
planned shift to a benchmark recommended by fallback language means you should know what material wholly owned domestic
a Federal Reserve-backed group could pose an the rate is going to be beforehand,” he said. subsidiaries, subject to customary
issue for the US leveraged loan market ahead of exceptions.
a transition away from Libor. The BSBY was made available to the US
loan market on March 8. It can be used as a )TûHASûAûPERFECTEDûlRSTûPRIORITYûSECURITYû
A so-called “other rate early opt-in trigger” standalone rate or as a supplement to term interest in substantially all assets and
has surfaced in a handful of loans in recent SOFR. Like Libor, the index comes in five tenors, capital stock of the borrower and
weeks. The provision allows borrowers to including overnight, one-month, three-month, guarantors, limited to 65% of the capital
transition to rates outside of SOFR, which is six-month, and 12-month. (see Top News.) STOCKûOFûlRST
TIERûFOREIGNûSUBSIDIARIESûANDû
recommended by the Fed’s Alternative Reference subject to other customary and
Rate Committee, according to a report from ARRC recommended loans include a so-called appropriate exceptions. It also has a
credit research firm Covenant Review. hardwired fallback that had a predetermined perfected second priority security interest
transition to a SOFR-based rate once triggered in any asset-based loan priority collateral.
A majority of lenders on a deal have five so that there would be a less manual adjustment
business days to object to the amendment when it came time to move to a new rate. But the There is a mandatory prepayment clause
implementing the new non-SOFR rate. This loan market has been hesitant to move since the THATûINCLUDESû ûEXCESSûCASHmOWûPROCEEDSû
means that borrowers could transition to a 2017 announcement that Libor was going away subject to leverage-based stepdowns, 100%
rate of their choice if not enough lenders raise because there was no term SOFR similar to the of net cash proceeds from non-ordinary
objections to the decision. one-month and three-month Libor rates now course asset sales, subject to leveraged-
used. Most borrowers choose an amendment based stepdowns, and customary
The US leveraged loan market is grappling option that would allow loans to be amended to reinvestment rights, and 100% of debt
with the impending demise of Libor. Regulators a selected rate at the time of the transition. issue proceeds, other than debt permitted.
offered US markets a reprieve pushing the
transition to June 30 2023, for existing loans But there has been some recent progress as )NTERIORû,OGICûISSUEDûAû53 MûlRST
LIENû
but said no new loan should be pegged to the the transition deadline ticks closer, with more TERMûLOANû"ûTOûlNANCEûITSûACQUISITIONûBYû
benchmark starting in 2022. than 60% of loans arranged in the first quarter private equity sponsor Blackstone in March.
containing hardwired fallback language, up from
“The issue is that as a lender, you have no 30% in the last three months of 2020, according The company is rated B2/B and the
guarantee as to what your rate is going to be, to data by Covenant Review. facility is rated B1/B.
and it could happen before Libor stops or even
if the market is moving towards SOFR,” said Ian This makes the new language even more Healthcare products retailer PRESTIGE
Walker, head of legal innovation at Covenant concerning, Walker said. BRANDS launched a US$600m term loan
Review. THATûWILLûlNANCEûANûACQUISITIONûANDû
“Majority lenders have only five business days RElNANCEûANûEXISTINGûSENIORûSECUREDûTERMû
“The way the trigger works is that if new deals to evaluate and object to the new rate, and it also loan B.
are being done on a rate that’s different from Libor means hoping that other lenders pay attention to
then the agent can pull the trigger and select a the loan documents,” he said. The seven-year loan is offered at 225bp–
new rate, like the Bloomberg Short-Term Bank Sasha Padbidri BPûOVERû,IBORûWITHûAû ûmOORûANDûANû
OID of 99–99.5.
The seven-year loan is offered at 275bp It comes with 101 soft call protection for
OVERû,IBOR ûWITHûAû ûmOORûANDûANû/)$ûOFû six months. It comes with 101 soft call protection for
99.5–99.75. six months.
Jefferies, KKR Capital Markets, TD Bank, BMO
It comes with 101 soft call protection for and Macquarie are bookrunners. The loan also has a covenant where the
six months. company must maintain a total leverage
INTERIOR LOGIC DETAILS ADD-ON ratio below 6.50 times and a minimum
JP Morgan is the lead bank and the consolidated cash interest coverage ratio
administrative agent. $ESIGNûlRMûINTERIOR LOGIC released guidance of more than 2.25 times.
FORûAû53 MûADD
ONûlRST
LIENûTERMûLOANû"
The company is rated B2/B and the facility Barclays is the lead bookrunner. The
is rated B1/B. The loan, which matures on April 1 2028, is company is rated B1/B+ and the facility is
OFFEREDûATû BPûOVERû,IBORûWITHûAû ûmOOR û rated Ba2/BB.
Dental services provider HEARTLAND DENTAL INûLINEûWITHûANûEXISTINGûlRST
LIENûTERMûLOANû" û)Tû
revealed guidance for a US$660m is also offered with an OID of 98–98.5. Payment technology platform NUVEI
INCREMENTALûlRST
LIENûTERMûLOANûTHATûWILLû TECHNOLOGIES is in the market with a
fund the acquisition of peer American It comes with 101 soft call protection REPRICINGûOFûANûEXISTINGû53 MûlRST
LIENû
Dental Partners. until October 1 and amortises at 1% per term loan and a US$200m fungible add-on
annum to be paid quarterly with the loan that will be used for acquisitions and
4HEûLOAN ûWHICHûMATURESûONû!PRILû û remainder due at maturity. general corporate purposes.
2025, is offered at 400bp over Libor with a
ûmOORûANDûANû/)$ûOFû The loans, which are due in 2025, are
offered at 250bp–275bp over Libor with a 0.5%
mOOR û4HEûADD
ONûLOANûISûOFFEREDûWITHûANû/)$ûOFû
99.5 while the repriced loan is offered at par.

The debt comes with 101 soft call
protection for six months.

BMO is the sole lead arranger.
4HEûCOMPANYûANDûTHEûlRST
LIENûDEBTûAREû
RATEDû"A "

68 International Financing Review June 5 2021

LEVERAGED LOANS

OSMOSE SEEKS US$1bn !û53 BNûTERMûLOANû"ûPRICEDûATû 4HEûCOMPANYûISûRATEDû" "ûANDûTHEûFACILITYû
BPûOVERû,IBOR ûWITHûAû ûmOORûATû û is rated B2/B.
Utilities and telecoms maintenance /)$ûFROMû BPn BPûWITHûAû ûmOORû
company OSMOSE UTILITIES SERVICES launched at 99 OID. CULLIGAN PREPS TAKEOVER LOANS
53 BNûOFûLOANSûTHATûWILLûRElNANCEûITSû
existing capital structure and fund a A €1.2bn TLB priced at 400bp over Water treatment company CULLIGAN has
distribution to shareholders. %URIBORûWITHûAû ûmOORûATû û/)$ ûFROMû scheduled a lender call for Monday to
BPn BPûWITHûAû ûmOORûATû û/)$ûATû discuss US$2.475bn of loans that will
4HEûlNANCINGûINCLUDESûAû53 MûlRST
LAUNCH ûWHILEûAûa Mû4,"ûlNALISEDûATû lNANCEûTHEûACQUISITIONûOFûAûMAJORITYûINTERESTû
lien term loan and a privately placed BPûOVERû3ONIA ûWITHûAû ûmOORûATû û INûTHEûCOMPANYûBYûINVESTMENTûlRMû"$4û
US$270m second-lien term loan. /)$ ûFROMû BPûWITHûAû ûmOORûATû û Capital Partners.
originally.
4HEûSEVEN
YEARûlRST
LIENûLOANûISûOFFEREDûATû Existing private equity sponsor Advent
BPn BPûOVERû,IBORûWITHûAû BPû All three tranches include 101 soft call International will retain a minority stake.
STEPDOWNûWHENûTHEûCLOSINGûDATEûNETûlRST
protection for six months and a 25bp
lien secured leverage decreases by 0.5 times. margin ratchet if leverage drops below 4.5 4HEûlNANCINGûCOMPRISESûAû53 Mû
The loan will be sold at a discount of 99. times. They all amortise at 1% per annum. REVOLVINGûCREDITûFACILITY ûAû53 BNûlRST
LIENû
term loan B and a US$250m delayed draw
It comes with 101 soft call protection for Goldman Sachs was lead-left arranger and term loan.
six months and amortises at 1% per sole physical bookrunner on the dollar
annum. tranche, while JP Morgan took the same Morgan Stanley is leading.
role for the euro and sterling tranches. Defence equipment services provider
Goldman Sachs is the lead-left arranger. Goldman Sachs is admin agent. FAIRBANKS MORSE DEFENSE unveiled guidance
RBC, UBS and Societe Generale are also FORû53 MûOFûLOANSûTHATûWILLûRElNANCEû
arrangers. Barclays, BNP Paribas, Citi, Deutsche Bank, existing debt and fund a shareholder
Guggenheim, HSBC, Nomura, Macquarie, distribution.
The company was acquired by private Jefferies and KKR were joint lead arrangers 4HEûlNANCINGûCOMPRISESûAû53 MûlVE
YEARû
EQUITYûlRMû%14û)NFRASTRUCTUREûINû*ANUARYû and joint bookrunners on all three revolving credit facility, a US$510m seven-year
2019. tranches. SENIORûSECUREDûlRST
LIENûTERMûLOANûANDûAû
US$155m eight-year second-lien term loan.
4HEûCOMPANYûISûRATEDû" "ûANDûTHEûlRST
#ORPORATEûRATINGSûAREû" "n ûWHILEûlRST
4HEûlRST
LIENûLOANûISûOFFEREDûATû BPûOVERû
lien tranche is rated B2/B. lien tranche ratings are B2/B–. ,IBORûWITHûAû ûmOORûANDûANû/)$ûOFû û)Tû
comes with 101 soft call protection for six
!IRûlLTERûMANUFACTURERûMADISON IAQ is in In 2018, Solera repriced its cross-border months.
THEûMARKETûWITHûAû53 BNûlRST
LIENû CREDITûFACILITYûMATURINGûINû-ARCHû û The second-lien loan is offered at 825bp
term loan. when a US$1.771bn TLB was guided at OVERû,IBORûWITHûAû ûmOORûANDûANû/)$ûOFû
BPûOVERû,IBORûWITHûAû ûmOOR ûAûõ Mû 98.5. Hard call protection on the second-lien
The seven-year loan, together with 4,"ûWASûGUIDEDûATû BPûOVERû%URIBORûWITHû loan kicks off at 102 before decreasing to 101.
US$600m of secured debt and US$885m of AûSTEPDOWNûTOû BPûOVERû%URIBORûWHENû Jefferies, BMO and UBS are arranging the
unsecured debt, will be used alongside total net leverage was 6.75 times, and 0% transaction.
equity to fund the acquisition of peer mOOR Hand protection product maker PROTECTIVE
.ORTEKûANDûRElNANCEûEXISTINGûDEBT INDUSTRIAL PRODUCTS was scheduled to close
Solera is a provider or risk and asset ONû&RIDAYûAû53 MûINCREMENTALûTERMûLOANû
4HEûLOANûISûOFFEREDûATû BPn BPûOVERû management software services to the B that will fund an acquisition.
,IBORûWITHûAû ûmOORûANDûANû/)$ûOFû automotive and property industries. The loan, which is fungible with an
EXISTINGû53 MûlRST
LIENûTERMûLOAN ûWASû
It comes with 101 soft call protection for The company was taken private by Vista offered at 400bp over Libor with a 0.75%
six months and amortises at 1% per Equity Partners in 2016 for US$6.5bn and mOOR û4HEû/)$ûWASûREVISEDûTOû ûFROMû
annum. has made a number of add-on acquisitions 99.5–99.75.
since then.
Goldman Sachs is the lead-left arranger. EMEA SPONSORED LOAN BOOKRUNNERS
Citigroup, CIBC, Barclays, Bank of America, Consumer packaged goods retailer SOVOS BY VOLUME: 1/1/2021 TO DATE
HSBC, MUFG, Capital One, Golub and Stifel are BRANDS revised terms for a US$580m
also arrangers. COVENANT
LITEûlRST
LIENûTERMûLOANûTHATûWILLû Europe, Middle East, Africa
repay existing debt and fund a shareholder
The company is rated B2/B and the distribution. Managing No of Total Share
secured tranche is rated B1/B. The bank or group issues US$(m) (%)
unsecured tranche is rated Caa1/CCC+. The transaction also includes a US$200m
privately placed second-lien term loan. 1 JP Morgan 20 5,078.71 9.0
UBS and Jefferies will provide debt 2 BNP Paribas 25 4,786.72 8.5
lNANCINGûTOûBACKûTHEûACQUISITIONûOFû 4HEûSEVEN
YEARûlRST
LIENûLOANûPRICEDûATû 3 Barclays 14 3,656.62 6.5
technology company FIREEYE by an investor 425bp over Libor, tighter than previous 4 Deutsche Bank 22 3,586.44 6.4
consortium led by software-focused private guidance of 475bp. The OID was revised to 5 Goldman Sachs 23 3,524.02 6.2
EQUITYûlRMû3YMPHONYû4ECHNOLOGYû'ROUP 99.75 from 99–99.5. 6 Credit Suisse 17 3,179.17 5.6
7 Credit Agricole 20 2,948.67 5.2
STG will combine the FireEye products )TûHASûAû BPûSTEPDOWNûWHENûTHEûlRST
8 Bank of America 13 2,462.85 4.4
business with cyber security company LIENûNETûLEVERAGEûHITSû ûTIMESûANDûAû BPû 9 Natixis 10 2,245.16 4.0
McAfee Enterprise. STEPDOWNûWHENûTHEûCOMPANYûlLESûFORûANû 10 UniCredit 12 2,074.34 3.7
IPO. 56 56,459.16
McAfee issued US$2.825bn of loans in Total
-AYûTOûlNANCEûITSûBUYOUTûBYû34' 4HEû ûmOORûREMAINSûUNCHANGED û)Tû
comes with 101 soft call protection for six Excluding project finance. SDC code: P13
SOLERA LOAN PRICED months. Source: Refinitiv

0RICINGûTIGHTENEDûONûAû53 BNûSEVEN
Credit Suisse led the transaction.
year multi-currency loan for US software The company previously issued a
company SOLERA that will be used to US$100m incremental loan in October to
RElNANCEûEXISTINGûDEBTûANDûFORûGENERALû lNANCEûTHEûACQUISITIONûOFûPANCAKEûANDû
corporate purposes including funding WAFmEûMIXûMAKERû"IRCHû"ENDERS
acquisitions.

International Financing Review June 5 2021 69

Soft call protection will be reset at 101 for Shanghai Pudong Development Bank and stepped up to fund the full amount when
SIXûMONTHSûONûTHEûENTIREû53 MûlRST
LIENû China Minsheng Bank Corp are global that deal was pulled a month later, sources
tranche. mandated lead arrangers. said.

Antares Capital was leading the transaction. Dutch healthcare equipment maker )NFRONT Sûõ MûlVE
YEARûTERMûLOANûWASû
4HEûEXISTINGûlRST
LIENûLOANûWASûISSUEDûINû Philips announced the sale on March 25, LAUNCHEDûONû!PRILû ûTOûRElNANCEûEXISTINGû
*ANUARYûTOûlNANCEûTHEûCOMPANY SûBUYOUTûBYû following a protracted sale process that debt and was richly priced, guided to pay
PRIVATEûEQUITYûlRMû/DYSSEYû)NVESTMENTû started last year. BPn BPûOVERû%URIBOR ûWITHûAû ûmOORû
Partners. at 98.5 OID. It included 101 soft call for six
The issuing entity, Gloves Buyer, is rated Philips said last year it intended to sell months.
" "n the division, which makes coffee machines
and vacuum cleaners, as a legacy from its Commitments were due by April 29 but
EUROPE/MIDDLE EAST/ long-ago days as a consumer products and the loan was withdrawn in May, becoming
AFRICA electronics conglomerate and no longer in THEûlRSTûlNANCINGûTOûBEûPULLEDûFROMû
line with its core business. Europe’s syndicated leveraged loan market
UDG EYES JUMBO LOAN this year. While increased supply has
The appliances division had sales of allowed investors to become more picky,
Clayton, Dubilier & Rice’s £2.6bn buyout of €2.2bn in 2020. leading to an increase in pricing or
London-listed UDG HEALTHCARE is being backed softening of documentation, no deal had
WITHûa BN
EQUIVALENTûOFûLOANS PAYSAFE SEEKS REFI previously failed.

4HEûSENIORûSECUREDûlNANCINGûCOMPRISESûAû Payment processor PAYSAFE has launched a Infront agreed a €450m three-year loan
a BNûTERMûLOANûANDûAû53 MûREVOLVINGû US$1.026bn dual-currency leveraged loan in 2018 via coordinating banks UBS and
credit facility. which together with US$1.026bn of other 5NI#REDIT ûCOMPRISINGûAûõ MûTERMûLOANû
SENIORûSECUREDûDEBTûWILLûRElNANCEû and a €100m revolving credit facility.
The term loan is split between a £510m US$2.065m of existing credit facilities.
tranche available to draw in euros and a The term loan, which had two one-year
£1.55bn tranche available to draw in US The US$1.026bn loan will be split extension options, paid a margin of
DOLLARS û4HEûINTERIMûFACILITIESûHAVEûAûlNALû between dollars and euros and is guided to BPn BPûOVERû%URIBOR ûDEPENDINGûONû
MATURITYûOFû ûDAYSûAFTERûTHEûlRSTû PAYû BPn BPûOVERû,IBOR %URIBOR ûATû leverage.
drawdown. 99.5 OID. The dollar tranche is offered with
Aû ûmOORûANDûTHEûEUROûTRANCHEûAû û There were options to increase the term
Citigroup, Deutsche Bank and JP Morgan mOOR ûBOTHûHAVEû ûSOFTûCALLûPROTECTIONûFORû loan by up to €100m and the RCF by up to
PROVIDEûTHEûINTERIMûlNANCING ûWHICHûISû six months. €50m, with an overall cap of €100m across
EXPECTEDûTOûBEûRElNANCEDûBEFOREûORûSHORTLYû the facilities.
after the buyout completes. There is a 25bp stepdown on both
TRANCHESûATû ûTIMESûNETûLEVERAGEûBASEDûONû Infront increased the term loan to
More banks are due to join the arranger 0.5 times of deleveraging on both tranches. €402.5m in September 2019.
list shortly, given the size of the undrawn
facilities and then the loan is expected to Existing corporate and facility ratings Infront is part of Chinese global sports
launch for syndication to investors in July, AREû" " ûWITHûAûRECOVERYûRATINGûOFû events, media and marketing unit Wanda
sources said. Sports Group.
JP Morgan is sole physical arranger on
The buyout is expected to be declared both tranches, alongside arranger Credit MFG PRICES REFI, RECAP
effective during the third quarter of 2021, Suisse. JP Morgan is also admin agent.
subject to shareholder and regulatory Clayton, Dubilier & Rice-owned UK forecourt
approvals. !ûBLANKûCHEQUEûACQUISITIONûlRMûBACKEDû operator MOTOR FUEL GROUP has priced a
by veteran investor Bill Foley merged with RElNANCINGûANDûRECAPûLOANûPACKAGE
UDG, which has its headquarters in Paysafe, valuing the payments company at
Dublin, specialises in healthcare advisory, around US$9bn, including debt. Paysafe’s 4HEûCOVENANT
LITEûlNANCINGûINCLUDESûANû
communications, commercial, clinical and merger with Foley Trasimene Acquisition existing £700m term loan B, priced in line
packaging services and has two divisions, Corp resulted in the London-based with guidance at 475bp over Sonia plus a
!SHlELDûANDû3HARP ûEMPLOYINGûABOUTû û company listing in New York at the end of CREDITûADJUSTMENTûSPREAD ûWITHûAû ûmOOR ûUPû
people in 29 countries. March. from the previous margin of 450bp over
Libor.
INFRONT NETS DEBT FROM CARLYLE
There is also an existing circa €787m TLB,
PDA LAUNCHES LBO LOAN The Carlyle Group has provided €400m in PRICEDûATû BPûOVERû%URIBORûWITHûAû ûmOOR û
DEBTûlNANCINGûTOû3WISSûSPORTSûMARKETINGû UPûFROMû BPûONûTHEûORIGINALûLOAN
Banks have launched an €850m seven-year lRMûINFRONT SPORTS & MEDIA after the
term loan B backing China’s Hillhouse borrower was forced to turn to the private Maturities of June 2025 are unchanged.
#APITAL Sûõ BNûACQUISITIONûOFû0HILIPS û DEBTûMARKETûHAVINGûPULLEDûAûõ MûLOANû Lenders were offered a 25bp waiver fee on
domestic appliance division. RElNANCINGûVIAûJP Morgan in May following the existing loans.
a lack of institutional investor support in There is also a £65m add-on TLB, fungible
Proceeds, alongside equity and other secured Europe’s syndicated leveraged loan with the existing sterling TLB, priced at
debt, will be used to fund the acquisition. market. 475bp over Sonia plus a credit adjustment
SPREAD ûWITHûAû ûmOOR ûANDûAûNEWûõ Mû
4HEû4,"ûISûGUIDEDûTOûPAYû BPûOVERû 4HEûõ MûDEBTûlNANCING ûWHICHûWASû NON
FUNGIBLEû4,"ûTHATûPRICEDûATû BPûOVERû
%URIBOR ûWITHûAû ûmOORûATû û/)$ û)TûISû provided by Carlyle’s Credit Opportunities %URIBORûWITHûAû ûmOOR
offered with 101 soft call protection for six Fund, part of Carlyle’s US$59bn Global Both new money loans also mature in
months. Credit segment, was announced on June 1. *UNEû ûANDûlNALISEDûWITHûAû û/)$
4HEûCOVENANT
LITEûlNANCINGûISûOFFEREDû
JP Morgan, HSBC and Deutsche Bank are joint Carlyle was set to provide junior capital with 101 soft call for six months.
physical bookrunners with Bank of America to Infront as part of its overall loan BNP Paribas, Deutsche Bank and Royal Bank
and ING as joint bookrunners. Deutsche RElNANCINGûTHATûWASûLAUNCHEDûINû!PRILûBUTû of Canada were joint global coordinators
Bank is admin agent.

70 International Financing Review June 5 2021

RESTRUCTURING

and physical bookrunners on the The latest move is I-Med’s second RESTRUCTURING
lNANCING û".0û0ARIBASûISûFACILITYûAGENT INCREASEûTOûTHEûORIGINALû! MûlVE
YEARû
LBO loan that closed in May 2018 to an EUROPE/MIDDLE EAST/
Corporate ratings are B2/B and overwhelming response. AFRICA
instrument ratings are B1/B.
The May 2018 borrowing backed PROSAFE GETS LENDER SUPPORT
BME INCREASES ADD-ON LOAN Permira’s purchase of I-Med.
Norwegian semi-submersible
Netherlands-based building materials The 2018 deal comprises an A$95m accommodation vessel operator PROSAFE has
distributor BME GROUP increased its senior amortising term loan (tranche A), an received support from 79% of its bank lenders
SECUREDûlRST
LIENûFUNGIBLEûTERMûLOANû"ûTOû A$495m bullet term loan (tranche B), an for a debt for equity restructuring plan.
€250m from €200m. A$75m bullet term loan for capital
expenditure (tranche C), and an A$25m The deal will result in a US$1.1bn debt
The deal, which is the borrower’s third revolving credit facility for working capital REDUCTIONûACROSSûTHEûCOMPANY Sû53 BNû
add-on loan since October 2020, will (tranche D). loan from 2015 facility and US$144m
mature in October 2026, the same as the outstanding from a US$288m loan from
existing facility. 4HEûOPENINGûMARGINSûWEREû BPûANDû 2014, equivalent to 75% of the group’s debt.
BPûOVERû""39ûFORûTHEûAMORTISINGûANDû In return, lenders will take a 92% stake in
The TLB priced at 400bp over Euribor, in bullet term loan tranches, respectively. the company.
LINEûWITHûEXISTING ûWITHûAû ûmOORûATûPAR û The opening leverage was around 4.5x.
revised from 99.5 at launch. Under the terms of the restructuring,
Twenty-eight lenders joined the deal in 53 MûOFûTHEû53 BNûLOANûANDû53 Mû
Sole physical bookrunner was Goldman GENERALûSYNDICATIONûDESPITEûAûREVERSEûmEX û of the US$144m facility will be reinstated.
Sachs, while joint MLAs were BNP Paribas, which cut the margin by 25bp. The reinstated facilities will mature in
Bank of America, Credit Suisse, MUFG, SMBC December 2025 and pay 250bp over Libor.
and NatWest. In September 2019, I-Med closed an
A$150m add-on to the 2018 loan. ,ENDERSûUNDERûTHEû53 BNûFACILITYûWILLû
Proceeds will be used for general take a 89% stake in the company while
corporate purposes including bolt-on ARNOTT’S PRICES ADD-ON lenders under the US$144m facility will take
acquisitions. The upsize will be used for Aû ûSTAKE
the partial repayment of the borrower’s ARNOTT’SûHASûPRICEDûANDûALLOCATEDûAû! Mû
term loan A. 53 M ûINCREMENTALûlRST
LIENûTERMûLOANû This will result in a US$9m reduction in
B following a strong response from lenders. ANNUALûDEBTûREPAYMENTS ûWITHûNOûlXEDû
#ORPORATEûANDûTRANCHEûRATINGSûAREû" " amortisation on the reinstated debt
)Nû-ARCHû"-%ûRAISEDûAûõ MûADD
ONû Jefferies and KKR Capital Markets were the facilities. All principal repayments prior to
loan and repriced a €920m loan. Both joint lead arrangers and bookrunners for maturity will be made via a new group cash
priced at 400bp over Euribor with a 0% THEûTRANSACTION ûWHICHûRElNANCESûAû! Mû sweep mechanism.
mOORûATûPAR eight-year second-lien TLB that was part of a
In October last year, it agreed a €220m 53 BN
EQUIVALENTû,"/ûlNANCINGûCLOSEDû More lenders are expected to sign up to
add-on that repaid a more expensive in 2019. the deal by mid-June 2021, but if Prosafe
second-lien loan. That deal priced at 500bp does not receive unanimous support for the
OVERû%URIBOR ûWITHûAû ûmOORûANDûALLOCATEDû The new TLB matures in 2026, aligning restructuring from all stakeholders it aims
with a 98.5 OID. with the maturities of existing seven-year to implement the deal using a Singapore
BME, formerly called Clay HoldCo, was lRST
LIENûLOANSûFROMûTHEû û,"/ûlNANCING Scheme of Arrangement.
acquired by Blackstone from CRH in
.OVEMBERû ûFORûõ BN û4HEûlRMû The interest margin and OID on the new The deal also requires approval from the
GENERATEDûõ BNûINûREVENUESûANDûõ Mû TLB are also in line with the existing company’s shareholders in an extraordinary
of management-adjusted Ebitda in 2019. Australian dollar term loan tranches at general meeting, the date of which has not
450bp over BBSY and 99 respectively. YETûBEENûCONlRMED
ASIA-PACIFIC
The new TLB has a lower interest rate 4HEû53 BNûFACILITYûWASûORIGINALLYû
I-MED SEEKS A&E mOORûOFû ûCOMPAREDûWITHû ûONûTHEû agreed in February 2015 via mandated lead
existing Aussie dollar tranches. arrangers Danske Bank, DNB Bank, Nordea
Permira Advisors-backed radiology "ANKûANDû3%" û4HEûlNANCINGûCOMPRISEDû
business I-MED is seeking to amend, extend 4HEûLATESTûRElNANCINGûWILLûHELPû!RNOTT Sû term loans of US$800m and US$200m; and a
and once again increase a leveraged LOWERûITSûBORROWINGûCOSTSûSIGNIlCANTLYûASûTHEû 53 MûREVOLVINGûCREDITûFACILITY
buyout loan from 2018 to A$1.01bn original second-lien TLB paid higher pricing.
(US$784m). The US$288m facility was agreed in May
Other tranches in the US$1.075bn- 2014 via Export-Import Bank of the Republic
Credit Agricole CIB, HSBC, ING Bank, Morgan equivalent LBO loan are two seven-year of China, ABN AMRO, Danske Bank, DNB
Stanley, MUFG Bank and Natixis are the lRST
LIENûTERMûLOANSûOFû53 MûANDû Bank, Nordea Bank, SEB and Swedbank.
mandated lead arrangers, bookrunners A$450m, a A$90m seven-year delayed draw
ANDûUNDERWRITERSûOFûTHEûlVE
YEARûLOAN û lRST
LIENûTERMûLOANûANDûAû! MûlVE
YEARû The loans were restructured in September
which is split into four tranches. revolving credit facility. 2016, reducing the amortisation on the bank
facilities for four years between 2017 and 2020.
The six leads and Commonwealth Bank of The US$400m seven-year piece priced at a
Australia, DNB, National Australia Bank and MARGINûOFû BPûOVERû,IBORûWITHûAû ûmOORûANDû The group’s convertible bonds will be
SMBC are pre-approved banks, which have ANû/)$ûOFû ûWHILEûTHEû! MûlVE
YEARû converted into shares and convertible
committed about 45% of the borrowing. revolver pays a margin of 425bp over BBSY. bondholders and existing shareholders
together will hold 1% of the company’s
The pricing is unchanged and the The 2019 buyout of Campbell Soup’s equity, with other liability holders holding
CURRENTûMARGINSûREmECTûTHEûNETûLEVERAGEû snacks unit Arnott’s saw private equity giant around 7%.
position. KKR acquiring businesses that sell soup,
stock, juice and ready meals in Australia,
Hong Kong, Indonesia, Japan, Malaysia, New
Zealand and Singapore, and manufacturing
operations in Australia, Indonesia and
Malaysia.

International Financing Review June 5 2021 71

IFR’s
ESG Financing Briefing

IFR’s ESG Financing Briefing is a subscription
service offering daily news, data and analysis
on green and ESG financing from across the
Refinitiv Capital Markets Insight Team.

To subscribe or learn more, e-mail
ifr.clientsupport@refinitiv.com

EQUITIES

China Hong Kong Japan South Korea France Germany Italy Russia 80

Spain 80 UK 81 United States 82 Canada Uruguay Structured Equity 88

„ FRONT STORY IPO

Marqeta leads wave of high-growth IPOs

Card-issuing platform seeks US$1.1bn after its revenue doubled in first quarter

MARQETA heads a wave of ultra-high-growth “There is a lot of stuff pushed from the -ARQETA SûREVENUEûSURGEDû ûTOû
technology companies expected to go public spring to the summer that will probably go US$108m in Q1, though it reported a net
on US exchanges in the coming weeks as AHEAD vûONEûSYNDICATEûBANKERûSAID LOSSûOFû53 MûANDûPOSITIVEûADJUSTEDû
ECM bankers seek to reignite the new issue %BITDAûOFûJUSTû53 M û-OREûTHANû ûOFûITSû
MARKETûFOLLOWINGûRECENTûMISlRES Strong debuts in recent weeks from SALESûINûTHEûLATESTûQUARTERûCAMEûFROMûONEû
COMPANIESûSUCHûASûD,OCAL û&LYWIRE û0AYMENTUSû CUSTOMER ûPAYMENTSûlRMû3QUARE
The card-issuing platform early on Tuesday ANDû/ATLYûHAVEûHELPEDûTOûRESTOREûCONlDENCEûINû
LAUNCHEDûANûUPûTOû53 BNû.ASDAQû)0/ûFORû THEûNEWûISSUEûMARKETûAFTERû/SCARû(EALTHûINû -ARQUETAûALSOûCOUNTSûBUYûNOW ûPAYûLATERûlRMSû
pricing this coming Tuesday June 8, marking March and Compass and AppLovin in April +LARNAûANDû!FlRMûANDûGIGûECONOMYûLEADERSû5BERû
the latest in a string of hotly sought payments- saddled investors with early losses amid a Technologies and DoorDash as customers,
RELATEDû)0/SûINûRECENTûWEEKS BROADERûSELL
OFFûINûGROWTHûSTOCKS ensuring it is also exposed to the fastest growing
TRENDSûINûTHEûPAYMENTSûBUSINESS
A syndicate led by Goldman Sachs and JP (YBRIDûAUCTIONû"ANKERSûCONlRMEDû
MorganûISûOFFERINGûTHEû MûPRIMARYûSHARES û -ARQETAûISûEMPLOYINGûAûSO
CALLEDûhHYBRIDû h/URûPLATFORMûISûBUILTûWITHûOPENû!0)Sû
or less than 9% of expanded shares auction” instead of a traditional bookbuild (application programming interfaces) that
OUTSTANDING ûATû53 n ûEACH TOûHELPûPRICEûANDûALLOCATEûSHARESûINûITSû)0/ ûAû place the control of card payment transactions
process typically reserved for deals (starting into the hands of businesses, enabling them to
The range is surprisingly wide considering with Unity Software in September last year) develop modern, frictionless payment
THEû)0/ûLOOKSûSHORTûODDSûTOûPRICEûATûTHEûTOPûORû in which banks expect a high level of EXPERIENCES vû#%/ûANDûFOUNDERû*ASONû'ARDNERû
ABOVEûTHEûMARKETINGûRANGE INVESTORûDEMAND SAIDûINûTHEûONLINEûROADSHOW

-ARQETAûISûONEûOFûSEVERALûTECHûCOMPANIESû (YBRIDûAUCTIONSûREQUIREûINVESTORSûTOûNAMEû “They can do this without needing to
growing revenue at a rapid pace expected to AûSPECIlCûPRICEûRATHERûTHANûSUBMITûORDERSû integrate with banks and credit card networks
DEBUTûINû*UNEûORû*ULY with price limits, giving the issuer greater ANDûTHEûPLATFORMûTAKESûCAREûOFûTHATûFORûTHEM v
transparency into demand at different price
/THERSûINCLUDEûWORKûSOFTWAREûlRMû-ONDAY points and potentially putting upward -ARQETAûCOLLECTSûMOSTûOFûITSûREVENUEûFROMû
com and digital outsourcer TaskUs (also pricing PRESSUREûONûTHEûPRICE net interchange fees set by the card
INûTHEûCOMINGûWEEK ûANDûCYBERSECURITYûlRMû NETWORKSûANDûPAIDûBYûCARDûACQUIRERSûTOûCARDû
3ENTINEL/NEû WHICHûlLEDûONû4HURSDAY !TûTHEûTOPûOFûTHEûRANGE ûTHEû)0/ûTERMSû ISSUERS û)NûITSûCASE ûTHEûLITTLE
KNOWNû3UTTONû
ATTRIBUTEû-ARQETAûAûMARKETûCAPITALISATIONûOFû "ANKû OFû/HIO ûACTSûASûTHEûISSUINGûBANKûBUTû
Meanwhile, bankers also expect this window 53 BNûORûMOREûTHANû ûTIMESûITSûCURRENTû PROVIDESûALLûTHEûINTERCHANGEûTOû-ARQETAûINû
to bring some deals delayed from last month run-rate annual revenue of US$432m, based RETURNûFORûAûFEE
and are prepping investors for some potential ONûITSûlRST
QUARTERûRESULT
LARGEû)0/SûFROMûTRADINGûAPPû2OBINHOOD û%6û Anthony Hughes
MAKERû2IVIANûANDûPAYMENTSûCOMPANYû3TRIPE

Pexa to list after rejecting bid ! Mû)0/ûPRICEDûATû! ûAûSHARE
!USTRALIANû#LINICALû,ABS û++2
BACKEDûNON

Recent Aussie IPOs have fared poorly
BANKûLENDERû0EPPERû-ONEYûANDûCONSUMERû
PEXA GROUPûPLANSûTOûRAISEû! BNû Link and another existing shareholder, lNANCEûCOMPANYû,ATITUDEû&INANCIALûAREûALSOû
53 M ûFROMû!USTRALIA SûBIGGESTû)0/ûINû #OMMONWEALTHû"ANKûOFû!USTRALIA ûAREû TRADINGûBELOWûTHEIRû)0/ûPRICES
nearly three years after its parent company buying shares to back the deal, with the
REJECTEDûAûTAKEOVERûOFFERûFROMû++2 û FORMER SûSHAREHOLDINGûINû0EXAûTOûINCREASEûTOû The weak performance has led to some
undeterred by a string of pulled listings and ûAFTERûTHEûmOATûFROMûTHEûCURRENTû DEALSûBEINGûPULLED ûINCLUDINGû)0/SûFROMû
DISAPPOINTINGûDEBUTSûONû!38 !URORAû(EALTHCAREûANDûPUBûOPERATORû
4HEû)0/ûWASûLAUNCHEDûONû-AYû ûAûDAYû !USTRALIANû6ENUEû#O û
,INKû!DMINISTRATIONû(OLDINGS ûTHEûMAJORû AFTERû,INKûDISCLOSEDûTHATûAû++2
LEDû
shareholder of the online property CONSORTIUMûHADûOFFEREDûTOûFULLYûACQUIREû0EXAû Australian copper miner 29METALS began a
settlement business, said on Monday that it FORû! BNûINCLUDINGûDEBT ROADSHOWûFORûITSûUPûTOû! Mû)0/ûONû
EXPECTSû0EXAûTOûGOûPUBLICûTOWARDSûTHEûENDûOFû -ONDAY ûSEEKINGûTOûBENElTûFROMûCOPPERû
*UNE ûAFTERûCOMPLETINGûAûCORNERSTONEûPROCESS Link said that it had signed an PRICESûTHATûHITûALL
TIMEûHIGHSûLASTûMONTH
UNDERWRITINGûAGREEMENTûFORûTHEû)0/ûATûANû
4HEûPROSPECTUSûISûSETûTOûBEûlLEDûONû*UNEû û IMPLIEDûENTERPRISEûVALUATIONûATû! BN 4HEû -ETALSû)0/ûCOMPRISESû! MûOFû
FORûTHEûCOUNTRY SûLARGESTûmOATûSINCEû6IVAû PRIMARYûANDû! Mn MûOFû
%NERGY Sû! BNû)0/ûINû ûWITHûTHEû Barrenjoey Advisory, Macquarie Capital, Morgan secondary shares for an implied market
SHARESûTOûSTARTûTRADINGûONû*ULYû Stanley and UBSûAREûTHEûLEADûMANAGERS CAPITALISATIONûOFû! Mn BN û

Although ASX indices hit record highs last The latest sub-par listing was that of )TSûSHARESûAREûEXPECTEDûTOûSTARTûTRADINGûONû
week, the prospects for the deal are KEYPATH EDUCATION, whose shares tumbled as *UNEû
UNCERTAIN MUCHûASû ûTOû! ûONûTHEIRûDEBUTûONû
Wednesday, after the company completed a Macquarie Capital is the global coordinator,
and lead manager with Credit Suisse and Morgan
Stanley ûCanaccord GenuityûISûAûCO
LEADûMANAGER

Candy Chan

International Financing Review June 5 2021 73

ASIA-PACIFIC COMBINEDû53 Mn MûTHISûYEAR ûONEûOFû ZHANGMEN CUTS US IPO SIZE
WHICHûORIGINALLYûPLANNEDûAû3TARû)0/ û4ELE

CHINA medicine company NEUSOFT XIKANG and 3OFT"ANK
BACKEDûZHANGMEN EDUCATION has
medical imaging provider NEUSOFT MEDICAL LAUNCHEDûAûSMALLER
THAN
EXPECTEDû.93%û)0/û
HK DRAWS FRUSTRATED IPO ASPIRANTS SYSTEMSûBOTHûlLEDûLISTINGûAPPLICATIONSûONû OFûUPûTOû53 MûAMIDûAûCRACKDOWNûONû
Monday with CICC and Goldman SachsûASûJOINTû #HINA SûONLINEûEDUCATIONûSECTOR
#HINA SûTIGHTENINGûGRIPûONûTECHNOLOGYû SPONSORS û%ACHûISûLOOKINGûTOûRAISEû53 Mn
LISTINGSûISûDRIVINGûSOMEû!
SHAREû)0/û M The online education company is selling
CANDIDATESûTOûSEEKûLISTINGSûINû(ONGû+ONGû MûPRIMARYû!MERICANûDEPOSITARYûSHARESû
lRST ûWITHûMICROPORT MEDBOT THEûLATESTûTOûJOINû KANZHUN BRAVES US MARKET ATû53 n ûEACHûTOûRAISEû53 Mn M
THEûTRENDûWITHûAûPLANNEDû53 Mn BNû
(ONGû+ONGû)0/ûTHISûYEAR 4ENCENT
BACKEDû#HINESEûONLINEûJOBûLISTINGû 3OFT"ANKû6ISIONû&UNDûANDû'ENESISû#APITALû
site KANZHUNûPLANSûTOûlLEûTERMSûFORûANû have indicated a combined interest of up to
The manufacturer of robots used in 53 Mn Mû.ASDAQû)0/ûASûEARLYûASû 53 M
surgical procedures started a pre-listing Friday, even as other Chinese issuers put
tutorial with CICC in December for a THEIRû)0/SûONûHOLDûFORûAûBETTERûMARKETû 4HEûCOMPANYûHADûlLEDûFORûAû53 Mû
3HANGHAIû3TARû)0/ ûBEFOREûELIGIBILITYûRULESû window, said people with knowledge of the PLACEHOLDERûAMOUNTûEARLIER
FORûTHEû.ASDAQ
STYLEûBOARDûWEREûTIGHTENEDûINû MATTER
!PRIL ûSLOWINGûDOWNûTHEûPACEûOFûLISTINGS )Nû-ARCH û#HINESEû0RESIDENTû8Iû*INPINGû
4HEû)0/ûISûEXPECTEDûTOûVALUEûTHEûCOMPANYû described the K–12 after-school tutorial
Some companies that were looking to list at US$8bn–$9bn and the deal could raise up market as a social problem that puts
ONûTHEû3TARûORû3HENZHENû#HI.EXTûBOARDSûAREû TOû53 BNûPOST
GREENSHOE IMMENSEûPRESSUREûONûCHILDRENûANDûPARENTS û
NOWûPLANNINGûTOûLISTûINû(ONGû+ONGûORûTHEû53û Authorities have since stepped up oversight
INSTEAD 4HEûmOATûHASûGENERATEDûSTRONGûEARLYû of the industry and are preparing to
interest from investors as they like the INTRODUCEûSTRICTERûRULES
“Many of those companies are evaluating COMPANY SûHIGHûGROWTH ûSAIDûTHEûPEOPLE
an offshore listing right now and will try to 3HANGHAI
BASEDû:HANGMENûPROVIDESû
COMPLETEûANûOVERSEASûLISTINGûlRSTûBEFOREû 4HEûCOMPANY SûCOREûPRODUCT û"OSSû:HIPIN û personalised online courses to students aged
returning to the A-share market,” said an is a mobile app that allows direct chats BETWEENûTHREEûANDû û)TSûCOREûCOURSEû
%#-ûBANKER ûh(OWEVER ûNOTûALLûOFûTHEMûAREû BETWEENûJOBûSEEKERSûANDûENTERPRISEûCLIENTS û offerings encompass one-on-one and small-
QUALIlEDûFORûANûOFFSHOREûLISTING û3OMEû Founded in 2014, Kanzhun posted revenue class after-school tutoring services covering
COMPANIESûAREûACTUALLYûEVENûQUITEûMARGINALû OFû2MB Mû 53 M ûFORûTHEûlRSTûTHREEû ALLûCOREû+
ûACADEMICûSUBJECTS
INûMEETINGûTHEûDOMESTICûLISTINGûCRITERIA vû MONTHSûOFû ûUPû ûOVERûTHEûSAMEû
PERIODûOFû û)TSûNETûLOSSûWASû2MB M û )TûPOSTEDûAûNETûLOSSûOFû2MB Mû 53 M û
#)## ûTOGETHERûWITHûJP Morgan, is leading COMPAREDûTOûAûLOSSûOFû2MB M FORûTHEûTHREEûMONTHSûENDEDû-ARCHû û)TûHADû
-ED"OT Sû(ONGû+ONGû)0/ ûWHICHûCOULDûCOMEû ANûANNUALûLOSSûOFû2MB BNûINû
ASûEARLYûASû3EPTEMBERûORû/CTOBER "OSSû:HIPINûHADû ûMILLIONûAVERAGEû
MONTHLYûACTIVEûUSERSûFORûTHEûlRSTûTHREEû 4HEûDEALûWILLûPRICEûONû*UNEû
,ASTûYEAR ûAûCONSORTIUMûLEDûBYû(ILLHOUSEû MONTHSûOFû ûUPû ûYEARûONûYEAR Morgan Stanley and Credit Suisse are leading
#APITALûINVESTEDû2MB BNûINû-ED"OTûATûAû THEûmOATûWITHûCitigroup, CICC and Macquarie
2MB BNû 53 BN ûVALUATION Lacklustre interest in fast-growing
Chinese companies and recent SF HOLDINGS TO SPIN OFF DELIVERY UNIT
-EDICALûDEVICESûMAKERû-ICRO0ORTû disappointing debuts have made investors
3CIENTIlCûHASûALREADYûLISTEDûSOMEûOFûITSûOTHERû MOREûCAUTIOUSûONû#HINA
TO
53ûLISTINGS û"IKE
Shenzhen-listed SF HOLDINGSûISûVISITINGû(ONGû
BUSINESSESûINûTHEûPASTûYEAR SHARINGûPLATFORMû(ELLOûANDûCLOUDû +ONGûAGAINûWITHûAûPLANûFORûAûSPIN
OFFûANDû)0/û
COMPUTINGûlRMû1INIUûHAVEûlNISHEDûPRE
of its express delivery unit, after listing
)Nû&EBRUARY û-ICRO0ORTû#ARDIO&LOWû MARKETINGûTHEIRû)0/SûANDûAREûNOWûWAITINGû SOMEûLOGISTICSûASSETSûINûTHEûCITYûLASTûMONTH
Medtech, which develops devices used in for a market window to launch the
the treatment of heart disease, raised TRANSACTIONS The Chinese delivery giant plans to offer
(+ BNû 53 M ûFROMûAû(ONGû+ONGû)0/ û ûOFûTHEûENLARGEDûCAPITALûINûTHEû(
SHAREû
4HEûSTOCKûCLOSEDûATû(+ ûONû7EDNESDAY û 4ENCENTû(OLDINGSûOWNSû ûOFû+ANZHUN LISTING ûASûWELLûASûAû ûGREENSHOE
UPû ûFROMûTHEû)0/ûPRICEûOFû(+ Goldman Sachs, Morgan Stanley, UBS and
China Renaissance are leading the transaction The unit posted a 2020 net loss of
)Nû*ULYû û-ICRO0ORTû3CIENTIlCûSPUNûOFFû 2MB Mû 53 M ûONûREVENUEûOFû
ANOTHERûSUBSIDIARY û3HANGHAIû-ICRO0ORTû 2MB BN û)TûPOSTEDûAûNETûLOSSûOFû2MB Mû
Endovascular MedTech, on the Shanghai FORû1 û
TECHûBOARDûINûAû2MB Mû)0/
ASIA-PACIFIC EQUITIES ASIA-PACIFIC EQUITIES (EX-JAPAN)
HUITONGDA NETWORK, a Chinese e-commerce BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE
company serving rural areas, on May 30
APPLIEDûTOûTHEû#HINAû3ECURITIESû2EGULATORYû Managing No of Total Share Managing No of Total Share
#OMMISSIONûFORûANûOVERSEASûLISTING bank or group issues US$(m) (%) bank or group issues US$(m) (%)

The Alibaba-backed company in January 1 Morgan Stanley 52 17,205.94 9.0 1 Morgan Stanley 43 16,161.55 8.8
KICKEDûOFFûANû)0/ûTUTORIALûWITHû(UAXINGû 2 Goldman Sachs 42 16,087.10 8.4
3ECURITIESûFORûAû#HI.EXTûLISTING ûBUTûITûISûNOWû 3 Citic 57 14,831.21 7.8 2 Goldman Sachs 41 16,029.27 8.7
working with China Renaissance, CICC and 4 Citigroup 36 11,946.31 6.3
Citigroup FORûAû(ONGû+ONGû)0/ûOFûABOUTû 5 UBS 38 8,695.58 4.6 3 Citic 57 14,831.21 8.1
53 BNûANDûPLANSûTOûlLEûAûLISTINGûAPPLICATIONû 6 CICC 42 7,960.46 4.2
ASûEARLYûASûTHISûMONTH 7 Bank of America 28 3.8 4 Citigroup 36 11,946.31 6.5
8 Haitong Secs 48 7,161.22 3.4
3HANGHAI
LISTEDû.EUSOFTûISûALSOûLISTINGûTWOû 9 Huatai Securities 32 6,423.66 2.9 5 UBS 35 8,521.45 4.6
MEDICALûUNITSûINû(ONGû+ONGûTOûRAISEûAû 10 JP Morgan 32 5,511.82 2.9
1,355 5,457.76 6 CICC 42 7,960.46 4.3
Total 190,640.16
7 Bank of America 25 6,932.66 3.8

8 Haitong Secs 48 6,423.66 3.5

9 Huatai Securities 32 5,511.82 3.0

10 JP Morgan 32 5,457.76 3.0

Total 1,285 183,587.52

Including all domestic and international deals and rights issues Including all domestic and international deals and rights issues

Source: Refinitiv SDC code: C4a1 Source: Refinitiv SDC code: C4a2

74 International Financing Review June 5 2021

EQUITIES ASIA-PACIFIC

Archi’s gold IPO loses its lustre

„ INDONESIA Miner turns to friends and family to complete smaller listing

Gold miner ARCHI INDONESIA is banking on friends connected parties points to a lack of interest The outlook for the gold sector is also
and family to buy a smaller than expected from external investors. uncertain. Some analysts expect gold to suffer
Rp2.98trn (US$209m) IPO after a weak when central banks begin to raise interest rates,
response from institutional investors took the Archi is looking to list a 15% stake through while others see it as a hedge against rising
shine off the long-planned listing. an IPO comprising up to 3.73bn shares (33.4% inflation.
primary, 66.6% secondary) at Rp750–Rp800
In an unusual disclosure, the company said each. The price range implies a 2021 EV/Ebitda Although gold prices have moved up
selling shareholder Rajawali Corpora’s business multiple of 5.5–5.8 and a P/E multiple of 8.3– to US$1,868 per ounce from 2021’s low of
associates, directors, employees, friends and 8.8, both big discounts to listed peers. In March US$1,681, they remain below the all-time high of
other contacts are expected to take up a Archi was targeting a P/E of around 14. US$2,067 touched in August 2020.
“substantial majority” of the IPO shares, and the
number of shares available for sale to the public Jakarta-listed gold miner Aneka Tambang “The management is hoping that a positive
will be reduced accordingly. trades at a 2021 EV/Ebitda of 13.6 and P/E of listing will help it sell more shares in the future,”
27. It is up 30% this year and 354% over the a Jakarta-based investor said.
Institutional books close on June 9 and the past 12 months. Merdeka Copper Gold is also up
retail offer runs from June 22 to 24. The shares 26% since the start of this year, at a forward EV/ Archi is not the first large Indonesian IPO this
are due to begin trading on the Indonesia Stock Ebitda of 22 and P/E of 52.3. Australian gold year to face challenges. In March nutritional
Exchange on June 28. miners trade in the 12x–40x P/E range. supplements maker SANGHIANG PERKASA put
on hold a US$500m domestic IPO because of
Archi pre-marketed a US$500m float in Rajawali is a major player in the controversial palm muted demand and concerns over valuation.
March but did not open books immediately oil industry and its founder, Peter Sondakh, is known
afterwards, with gold testing 11-month lows to have close ties to disgraced former Malaysian Archi will use the funds from the primary
at US$1,681 an ounce. It previously attempted prime minister Najib Razak. A dispute over the sale issuance to repay debt.
a Rp4.6trn (then US$380m) IPO in 2014 but of a 37% stake in Rajawali’s Eagle High Plantations
shelved it following a weak response. to Malaysia’s Federal Land Development Authority There is a six-month lock-up on the company
(Felda), agreed under Najib’s administration in 2017, and the selling shareholder.
The latest filing suggests the deal will get remains under arbitration in Singapore.
done, but the smaller size and reliance on Citigroup, Credit Suisse, BNI Securities, Mandiri
and UOB Kay Hian are the underwriters.
S Anuradha

3&ûHOLDSûAûCOMBINEDû ûSTAKEûINûTHEû -ARCHû ûAGAINSTûAûLOSSûOFû2MB MûAûYEARû BOOKS COVERED FOR ANGELALIGN IPO
proposed spin-off, which completed a new EARLIER û)TûHADûANûANNUALûLOSSûOFû2MB MûINû
PRIVATEûROUNDûINû&EBRUARYûTOûBRINGûINû ûNEWû "OOKSûWEREûCOVEREDûFORûANGELALIGN
INVESTORS TECHNOLOGY Sû(ONGû+ONGû)0/ûOFûUPûTOû
Goldman Sachs, Bank of America, China (+ BNû 53 M ûANûHOURûAFTERû
SF listed three of its logistics centres in Renaissance, GTJA, CLSA and Tiger Brokers are BOOKBUILDINGûSTARTEDûONû4HURSDAY
#HINAûANDû(ONGû+ONGûINûTHEûCITYûONû-AYû û WORKINGûONûTHEûDEAL û
THROUGHûAû2%)4 The teeth straightening provider is selling
NAYUKI WINS APPROVAL IN PRINCIPLE MûPRIMARYûSHARES û ûOFûTHEûENLARGEDû
AIHUISHOU FILES FOR NYSE IPO FOR HK IPO share capital, in an indicative range of
(+ n ûPERûSHARE
Second-hand goods marketplace AIHUISHOU Teahouse chain NAYUKI HOLDINGS has won in
INTERNATIONALûHASûlLEDûTOûTHEû3%#ûFORûAû.93%û principle listing approval from the Stock 4HEûRANGEûREPRESENTSûAû ûPRE
SHOEû0 %û
)0/ûWITHûAûPLACEHOLDERûSIZEûOFû53 M %XCHANGEûOFû(ONGû+ONGûFORûAû53 Mû OFû n û4HEûDEALûISûSCHEDULEDûTOûPRICEû
mOAT ûSAIDûPEOPLEûWITHûKNOWLEDGEûOFûTHEû on June 8 and the shares will start trading
Aihuishou recycles mobile phones, MATTER ONû*UNEû ûCICC and Goldman Sachs are the
computers, laptops, cameras and other SPONSORSûANDûBOOKRUNNERS
electronics products from individuals and The company is answering some
corporations and resells them on its ADDITIONALûQUESTIONSûFROMûTHEûEXCHANGEûANDû !NGELALIGNûPOSTEDûANûADJUSTEDûNETûPROlTû
WEBSITEûANDûTHROUGHû ûOFmINEûSTORESû pre-marketing will start as early as this week OFû2MB Mû 53 M ûFORû ûUPû û
ACROSSû#HINA IFûTHOSEûQUESTIONSûAREûADDRESSEDûINûTHEûNEXTû FROMûAûYEARûEARLIER
FEWûDAYS
*$ COM ûTHEûLARGESTûSHAREHOLDERûINûTHEû As of September 30, the company offered
COMPANYûWITHûAû ûSTAKE ûLEDûAû53 Mû CMB International, Huatai International and SERVICESûTOûABOUTû ûDENTALû
funding round in June 2019 that led to the JP MorganûAREûTHEûJOINTûSPONSORS PROFESSIONALS
MERGERûOFûTHEûONLINEûRETAILûGIANT SûOWNû
SECOND
HANDûGOODSûMARKETPLACEû0AIPAIûWITHû 3INCEûOPENINGûITSûlRSTûTEAHOUSEûINû The controlling shareholder of Angelalign
!IHUISHOU û)TSûOTHERûMAJORûSHAREHOLDERSû 3HENZHENûINû û.AYUKIûHADûEXPANDEDûTOû ISû#ARE#APITALû/RTHOTECH ûWHICHûISûBACKEDû
INCLUDEû-ORNINGSIDEû6ENTUREû#APITALûANDû ûTEAHOUSESûINû ûCITIESûINû#HINAûASûOFû BYû(ILLHOUSEû#APITAL
4IANTUû#APITAL 3EPTEMBERûLASTûYEAR û.AYUKIûALSOûRUNSûTHEû
4AIû'AIûBRAND ûWHICHûHASû ûTEAHOUSESûINû RAZER MANAGEMENT SELLS SHARES
0ROCEEDSûWILLûBEûUSEDûTOûIMPROVEû EIGHTûCITIESûINû#HINA
technology, diversify offerings, expand its Two RAZER SHAREHOLDERS ûINCLUDINGûTHEû#%/ û
store network and new sales channels and )TûPOSTEDûAûLOSSûOFû2MB Mû 53 M û HAVEûRAISEDû(+ Mû 53 M ûFROMûAûSELL

FORûGENERALûCORPORATEûPURPOSES for the nine months ended September 30 down in the gaming hardware and software
ûUPû ûFROMû2MB MûTHEûYEARû DEVELOPER
)TûPOSTEDûAûNETûLOSSûOFû2MB Mû BEFORE û)TûHADûANûANNUALûLOSSûOFû2MB MûINû
53 M ûFORûTHEûTHREEûMONTHSûENDEDû 4HEûSALEûOFû MûSHARES ûREPRESENTINGû
ûOFûTHEûCOMPANY ûWASûPRICEDûATûTHEû

International Financing Review June 5 2021 75

BOTTOMûOFûTHEû(+ n ûMARKETEDû (+ ûEACH ûANû ûDISCOUNTûTOû-ONDAY Sû TWO LINE UP IPO FILINGS
RANGEûORûATûAû ûDISCOUNTûTOû7EDNESDAY Sû CLOSEûOFû(+
CLOSEûOFû(+ )NDIANûONLINEûBEAUTYûANDûPERSONALûCAREû
4HEûSHARESûWEREûMARKETEDûINûAû(+ n product retailer NYKAAûPLANSûTOûlLEûINû*ULYûFORû
The selling shareholders were co-founder ûPRICEûRANGE ANû)0/ûOFûAROUNDû53 MûTOûBEûLAUNCHEDû
ANDû#%/û-IN
,IANGû4ANûANDûFOUNDINGû TOWARDSûTHEûENDûOFûTHEûYEAR
INVESTORû,IMû+ALINGûANDûTHEIRûAFlLIATEDû The books were multiple times
ENTITIES SUBSCRIBEDûWITHûCLOSEûTOû ûINVESTORSû Bank of America, Citigroup, ICICI Securities,
PARTICIPATING û4HEREûWASûSTRONGûSUPPORTû Kotak and Morgan Stanley are working on the
The books were multiple times covered from global long-only investors and TRANSACTION
WITHûABOUTû ûINVESTORSûPARTICIPATING û4HEREû EXISTINGûSHAREHOLDERS û,ONG
ONLYûINVESTORSû
was a good mix of hedge funds and long- took around half of the deal and the top 10 #%/û&ALGUNIû.AYARûISûTHEûFOUNDERûOFûTHEû
ONLYûINVESTORS INVESTORSûTOOKûABOUTû company and other investors include Fidelity,
,IGHTHOUSEû!DVISORSûANDû40'û#APITAL
4HEREûISûAû
DAYûLOCK
UP 4HEREûISûAû
DAYûLOCK
UPûPERIOD
Goldman SachsûWASûTHEûBOOKRUNNER --'ûOPERATESûANDûDEVELOPSûCOPPER ûZINCû POPULAR VEHICLES & SERVICESûALSOûPLANSûTOûlLEûFORû
ANDûOTHERûBASEûMETALSûPROJECTSûACROSSû ANû)0/ûINû*ULYûOFûUPûTOû2S BNû 53 M ûFORû
WARBURG PINCUS SELLS HYGEIA SHARES !USTRALIA û0ERUûANDû,AOS launch towards the end of the year, a person
0ROCEEDSûWILLûBEûUSEDûFORûPOTENTIALû WITHûKNOWLEDGEûOFûTHEûTRANSACTIONûSAID
7ARBURGû0INCUSûHASûRAISEDû(+ BNû FUTUREûACQUISITIONS ûSTRATEGICûINVESTMENTS û
(US$213m) from a sell-down in HYGEIA working capital and general corporate "OTHûPRIMARYûANDûSECONDARYûSHARESûAREû
HEALTHCARE, a Chinese hospital operator and PURPOSES LIKELYûTOûBEûSOLD
RADIOTHERAPYûEQUIPMENTûMAKER CLSA and Credit Suisse WEREûJOINTûGLOBALû
COORDINATORS ûANDûJOINTûBOOKRUNNERSûWITH The company, part of the Kuttukaran
The deal, comprising 20m secondary BOC International 'ROUP ûISûTHEûTHIRD
LARGESTûDEALERûFORû-ARUTIû
SHARES û ûOFûTHEûSHAREûCAPITAL ûWASûSOLDûATû 3UZUKIûVEHICLESûINû)NDIA û0OPULARû6EHICLESû
(+ ûPERûSHAREûFROMûTHEû(+ n GOGOX PLANS PRE-IPO ROUND has 11 showrooms and 40 service centres
ûRANGE û4HEûlNALûPRICEûREPRESENTSûAû across the southern states of Kerala and
DISCOUNTûOFû ûTOû4HURSDAY SûCLOSEûOFû (ONGû+ONG
BASEDûLOGISTICSûCOMPANYûGOGOX is 4AMILû.ADU
(+ RAISINGûUPûTOû53 MûFROMûAûPRE
)0/ûROUNDû
AHEADûOFûAû(ONGû+ONGû)0/ûASûEARLYûASûTHISû Axis and DAM CapitalûAREûWORKINGûONûTHEû)0/ û
4HEREûISûAû
DAYûLOCK
UPûONûTHEûVENDOR year, said people with knowledge of the
JP Morgan and Morgan Stanley were the MATTER JAPAN
BOOKRUNNERS
(YGEIA SûSHARESûFELLû ûONû4HURSDAYûBUTû The round, being arranged by CICC and PAYROLL SETS PRICE RANGE FOR IPO
AREûUPû ûTHISûYEAR UBS, is expected to value the company
AROUNDû53 BNn BN (UMANûRESOURCESûSERVICEûPROVIDERûPAYROLL
CTGR’S IPO OVERSUBSCRIBED has set an indicative price range of
'OGO8ûISûPLANNINGûTOûlLEûAûLISTINGû ¥1,280–¥1,380 per share for its up to
CHINA THREE GORGES RENEWABLES (GROUP) has APPLICATIONûTOûTHEû3TOCKû%XCHANGEûOFû(ONGû c BNû 53 M û43%û)0/
WRAPPEDûUPûAû2MB BNû 53 BN û Kong after the funding round and is looking
3HANGHAIû)0/ û#HINA SûBIGGESTûmOATûSOûFARû to raise about US$400m–$500m from the 4HEûBASEûDEALûCONSISTSûOFû MûSHARES û!Tû
this year, that saw the retail tranche nearly mOAT the top of the price range the potential
ûTIMESûSUBSCRIBED MARKETûCAPITALISATIONûISûc BN û4HEREûISûAû
!û'OGO8ûSPOKESPERSONûDECLINEDûTOû ûGREENSHOE
The oversubscription led to a clawback of COMMENT
BNûSHARESûFROMûTHEûINSTITUTIONALûTOûTHEû )NCLUDINGûTHEûGREENSHOE ûTHEREûAREû
RETAILûTRANCHE û4HEûCOMPANYûEVENTUALLYûSOLDû 'OGO8ûISûANûAPP
BASEDûLOGISTICSûPLATFORMû ûNEWûSHARESûANDû MûEXISTINGû
BNû!
SHARES û ûOFûTHEûENLARGEDûCAPITAL û INû!SIA û4HEûCOMPANYûHASûEXPANDEDûFROMû SHARESûONûOFFER
ATû2MB ûEACHûTOûINSTITUTIONALûANDûRETAILû (ONGû+ONGûTOû3INGAPORE û4AIWAN û3OUTHû
INVESTORSûWITHûAû ûSPLIT û +OREA û)NDIA û6IETNAMûANDûMAINLANDû#HINA û "OOKSûWILLûCLOSEûONû*UNEû ûFORûINTERNATIONALû
with a presence in over 300 cities and more INVESTORSûANDû*UNEû ûFORûDOMESTICûINVESTORS û
The wind and solar power generation THANûEIGHTûMILLIONûREGISTEREDûDRIVERS 0RICINGûWILLûBEûONû*UNEû
company, owned by state-owned China
4HREEû'ORGESû#ORP ûWILLûUSEûTHEûPROCEEDSûTOû INDIA 3HARESûAREûSLATEDûTOûBEûLISTEDûONû*UNEû
FUNDûSEVENûOFFSHOREûWINDûFARMûPROJECTSûANDû Nomura is the sole bookrunner and lead
REPLENISHûWORKINGûCAPITAL CANARA BANK PLANS Rs25bn QIP MANAGER
5PûTOû ûSHARESûWILLûBEûALLOCATEDûTOûANû
Citic Securities was the sole sponsor and CANARA BANK SûBOARDûHASûAPPROVEDûRAISINGûUPû EMPLOYEEûSHAREHOLDERûORGANISATION
JOINTûBOOKRUNNERûWITHûHuatai United TOû2S BNû 53 M ûTHROUGHûAûQUALIlEDû 4HEûSELLINGûSHAREHOLDERSûAREû0ACIlCû
Securities, Shenwan Hongyuan Financing Service institutional placement in the current 'ROWTHû)NVESTMENT û0ACIlCû))û)NVESTMENTû
and Everbright Securities lNANCIALûYEARûENDINGû-ARCHû ANDû2ISAû#ORPORATEû3OLUTIONSû&UNDû)6û
)NVESTMENT
HONG KONG The state-owned bank said it also planned 4HEREûISûAû
DAYûLOCK
UP
TOûSELLû4IERû ûBONDSûFORûUPûTOû2S BNûANDû4IERû
MMG BUILDS WAR CHEST ûBONDSûFORû2S BN SINGAPORE

Metals miner MMGûHASûRAISEDû(+ BNû )Nû$ECEMBER û#ANARAû"ANKûRAISEDû2S BNû CITY DEV FILES FOR REIT IPO
(US$302m) from an upsized primary FROMûAû1)0ûPRICEDûATû2S û4HEûBANKû
PLACEMENT SHARESûHAVEûRISENû ûSOûFARûTHISûYEAR û!XIS û CITY DEVELOPMENTSûHASûlLEDûFORûAû2%)4û)0/ûOFû
)#)#)û3ECURITIES û)$")û#APITAL û*-û&INANCIALû UPûTOû3 BNû 53 M ûONûTHEû3INGAPOREû
The sale of 400m shares at launch was ANDû3")û#APITALû-ARKETSûWEREûTHEûBANKSûONû Exchange and is targeting the launch in
UPSIZEDûTOû MûSHARESûANDûPRICEDûATû THEûTRANSACTION 3EPTEMBER

76 International Financing Review June 5 2021

EQUITIES EMEA

4HEû2%)4ûWILLûSTARTûSCOUTINGûFORû LOTTE RENTAL FILES FOR IPO 4HEREûAREûCURRENTLYûAROUNDû û)0/SûLIVEûINû
cornerstone investors towards the end of Europe, and this competition means some
THISûMONTH û)TSûASSETSûWILLûBEûCOMMERCIALû LOTTE RENTAL û,OTTEû'ROUP SûCARûRENTALûSERVICE û DEALSûSTRUGGLEûTOûCAPTUREûINVESTORûATTENTION
PROPERTIESûINûTHEû5+ has submitted a preliminary application to
THEû+OREAû%XCHANGEûFORûANû)0/ûTHATûCOULDû 0(%ûWASûSEEKINGûTOûRAISEûõ MûINûFRESHû
DBS and OCBC AREûJOINTûGLOBALûCOORDINATORSû COMEûINûTHEûSECONDûHALFûOFûTHISûYEAR CASH ûWITHû"AINû#APITALûPROVIDINGûAû û
with Credit Suisse. Morgan Stanley is a SECONDARYûGREENSHOE
BOOKRUNNER û 2EPORTSûSAIDûTHEûDEALûCOULDûRAISEûABOUTû
7 BNû 53 M ûATûAûVALUATIONûOFûAROUNDû All the primary proceeds were to be used
The deal, if it goes through, will be the 7 TRN to repay debt
lRSTû2%)4û)0/ûOFûTHEûYEARûONû3'8 û)Nû!PRIL û
#OREû)NCOMEû'LOBALû2%)4ûSHELVEDûITSû3 Mû 4HEûCOMPANYûPLANSûTOûUSEû+28 SûFAST
TRACKû h7EûALWAYSûKNEWû0(%ûWOULDûBEûAûSLOW

)0/ûBECAUSEûOFûWEAKûDEMANDûANDûVOLATILEû scheme, which allow reviews to be done in BUILDINGûBOOK vûSAIDûTHEûBANKER ûh4HEûFACTû
MARKETûCONDITIONS 20 working days instead of the usual 45 THATûITûWOULDûSTILLûBEû0%ûOWNEDûALSOû
DAYS ûAûPERSONûINVOLVEDûSAID potentially weighed on investor sentiment,
#ITYû$EVELOPMENTSûLASTûLISTEDûAû2%)4ûINû IT SûALWAYSûDIFlCULTûFORûTHEMûTOûPAYûTHEûPRICEû
4HEûRENTALûSERVICEûWASûACQUIREDûBYû,OTTEû WITHûSUCHûANûOVERHANG v
from telecoms company KT in 2015 for
FKS FOOD PLANS SGX IPO 7 TRN û,OTTEû(OTELûISû,OTTEû2ENTAL SûLARGESTû That seemed to have been acknowledged
SHAREHOLDERûWITHûAû ûSTAKE when the price range was set offering a large
FKS FOOD & AGRI is planning a Singapore DISCOUNTûTOûTHEûPEERûGROUP û
%XCHANGEû)0/ûOFûUPûTOû53 MûLATERûTHISû NH Investment and Securities and Korea
YEAR Investment and SecuritiesûAREûTHEûJOINTû 4HEûPRICEûRANGEûREPRESENTEDû n ûTIMESû
BOOKRUNNERS %6 %BITDAûFORû ûONûCONSENSUSûFORûAû
&+3û&OODûISûPARTûOFû)NDONESIA
BASEDû&+3û DISCOUNTûOFûABOUTû ûATûTHEûTOPûTOû.ASDAQ

'ROUPûANDûTRADESûAGRICULTURALûCOMMODITIESû OASIS MARKET HIRES BANKS FOR IPO listed peer US car parts distributor LKQ,
such as soybeans, soybean meal, wheat, WHICHûTRADESûAROUNDû ûTIMES
CORNûANDûSUGARûINû3OUTH
%ASTû!SIA OASIS MARKET, a South Korean online grocery
delivery service, has mandated Korea 0(%ûNOWûHASûTWOûFAILEDûATTEMPTSûTOûLISTû
)Nû û*APAN Sû-ITSUIû û#OûANDûTHEû Investment & Securities and NH Investment & UNDERûITSûBELT ûHAVINGûlRSTûTRIEDûTOûmOATûINû
$EVELOPMENTû"ANKûOFû*APANûJOINTLYûACQUIREDû SecuritiesûTOûWORKûONûAûPROPOSEDû+28û)0/ -AYû û
ANû ûSTAKEûINû&+3û&OODûFORû53 M
)Nû!PRILûLASTûYEAR ûTHEûCOMPANYûRAISEDû 3HARESûWEREûONûOFFERûATûõ nõ ûEACH û
Credit Suisse and OCBC are working on 7 BNû 53 M ûFROMûVENTUREûCAPITALû VALUINGû0(%ûATûõ Mnõ MûPRE
MONEYû
THEû)0/ lRMû+OREAû)NVESTMENTû0ARTNERSûATûAû ANDûõ BNnõ BNûPOST
MONEY
VALUATIONûOFû7 BN
SOUTH KOREA Barclays, BNP Paribas and Goldman Sachs
/ASISû-ARKETûISû ûOWNEDûBYû+28
LISTEDû WEREûJOINTûGLOBALûCOORDINATORS ûANDûJOINTû
LG ENERGY SOLUTION TO FILE IPO WIRELESSûINTERNETûCOMPANYû'AEA3OFT bookrunners with Citigroup, Credit Agricole,
HSBC and Societe Generale.
Electric vehicle battery maker LG ENERGY The company was founded in 2011 by
SOLUTION may submit a preliminary members of a consumer cooperative and ACCOR SPAC FINDS LONG-ONLY INTEREST
application to the Korea Exchange this OPERATEDûMAINLYûINûPHYSICALûSTORES û)Tû
MONTHûFORûPOTENTIALLYûTHEûCOUNTRY SûLARGESTû expanded its delivery service in 2018, 4HEûlRSTûCORPORATE
SPONSOREDû30!#ûINû
)0/ûEVER COMPETINGûAGAINSTûTHEûLIKESûOFû-ARKETû+URLY Europe, by hotel group ACCOR, attracted
WIDERûINTERESTûTHANûSOMEûBLANKûCHEQUEû
The deal could raise about US$10bn– Market Kurly has also disclosed plans to COMPANIESûHAVEûFOUND û3OMEûOFûTHATûINTERESTû
BN ûSAIDûONEûPERSONûCLOSEûTOûTHEûDEAL û)TûISû go public this year will only manifest later with certain long-
TARGETINGûTHEûLAUNCHûINû*ULYûORû!UGUST only investors keen to participate in a
EUROPE/MIDDLE FUNDRAISINGûATûTHEûTIMEûOFûANûACQUISITIONû
)&2ûREPORTEDûEARLIERûTHATûTHEûCOMPANYûHADû EAST/AFRICA RATHERûTHANûTHEû)0/
mandated KB Securities and Morgan Stanley to
LEADûTHEûPROPOSEDûDEAL ûBank of America, FRANCE 4HEû)0/ûOFûACCOR ACQUISITION COMPANY raised
Citigroup, Daishin, Goldman Sachs and Shinhan õ M ûPLUSûõ MûLIKELYûFROMûTHEûGREENSHOE û
BankûWEREûALSOûMANDATEDûASûBOOKRUNNERS PARTS HOLDING EUROPE SCRAPS ATûTHEûUSUALûõ ûPERûUNITûOFûONEûSHAREûANDûONE

SECOND IPO ATTEMPT THIRDûWARRANT û)TûCAMEûJUSTûAûFEWûDAYSûAFTERû
2EPORTSûSUGGESTûTHEûCOMPANYûCOULDûBEû CONSUMERûGOODSûCOMPANYû0OSTû(OLDINGSû
valued at W50trn–W100trn (US$45bn– Car parts distributor PARTS HOLDING EUROPE has RAISEDû53 MûFORûITSûlRSTû30!#ûINûTHEû53
BN CANCELLEDûITSû)0/ûCITINGûADVERSEûMARKETû
CONDITIONSûFORû)0/SûINûTHEû53ûANDû%UROPE !ûMAJORûPARTûOFûINVESTINGûINûAû30!#ûATû)0/û
3OUTHû+OREA SûEXISTINGû)0/ûRECORDûWASûSETû is paying management to source an
INû ûWHENû3AMSUNGû,IFEû)NSURANCEûRAISEDû "OOKSûCLOSEDûFORûTHEûõ Mû)0/ûATû PMû ACQUISITION ûSOûTHEREûISûLOGICûINûBACKINGûAû
7 TRN û last Wednesday with no covered message, CORPORATEûTOûlNDûAûTARGETûINûAûRELATEDû
HAVINGûOPENEDûONû-AYû BUSINESS û)NûTHEûCASEûOFû!CCOR ûITûISûLOOKINGûATû
,'û%NERGYû3OLUTIONûPOSTEDûREVENUEûOFû food and drinks, events and travel
7 TRNûANDûANûOPERATINGûPROlTûOFû A banker involved in the deal said there technology, all complementary to its
7 BNûFORûTHEûlRSTûQUARTER was hope right until the end, but that HOSPITALITYûOPERATIONS
ULTIMATELYûAûBUSYû)0/ûMARKETûMADEûITû
4HEû%6ûBATTERYûUNITûSUPPLIESû4ESLAûANDû DIFlCULTûFORûTHEûDEALûTOûSTANDûOUT ûTHATûSIZINGû 4HEûBOOKûWASûSIMILARûTOûOTHERû30!#S ûWITHû
'ENERALû-OTORS was an issue as well as the fact that it is coverage from indications at launch
PRIVATEûEQUITYûOWNED û building to oversubscription following two
,'û%NERGYû3OLUTIONûDISCLOSEDûAûPLANûINû DAYSûOFûBOOKBUILDINGûANDû30!#ûSPECIALISTû
-ARCHûTOûINVESTûMOREûTHANû53 BNûINûTHEû hedge funds in the UK and US providing the
US battery production business, including at BULKûOFûDEMAND û!ROUNDû ûINVESTORSû
LEASTûTWOûNEWûPLANTS ûASû53û0RESIDENTû*OEû participated, with long-only interest out of
"IDENûHASûMADEûBOOSTINGû%6SûANDû53ûBATTERYû &RANCEûAûDIFFERENTIATOR
PRODUCTIONûAûTOPûPRIORITY

International Financing Review June 5 2021 77

There was further long-only interest with ONLYûANDûEXISTINGûSHAREHOLDERS û4HEREûWEREû GERMANY
some investors expressing an interest in about 130 lines in the book and the top 10
potentially participating in the private RECEIVEDûABOUTûHALFûOFûTHEûDEAL û4HEûTOPû û PRE-IPO SHAREHOLDERS SELL €400m
PLACEMENTû 0)0% ûTHATûWOULDûACCOMPANYûAû ORDERSûTOOKûABOUTû OF AUTO1
MERGER û4HOSEûMAKINGûUPûTHEûNEWûWAVEûOFû
%UROPEANû30!#SûHAVEûYETûTOûCONSUMMATEûANû The previous sale was in March when it A cohort of long-term investors in AUTO1
ACQUISITION ûBUTûTHEûEXPECTATIONûISûTHATûTHEYû SOLDû ûATûõ ûAûSHARE GROUPûWEREûRELEASEDûFROMûTHEûPOST
)0/û
will follow the US model of completing a LOCK
UPûTOûSELLû ûOFûTHEû'ERMANûONLINEû
0)0%ûTOûAûHANDFULûOFûINSTITUTIONSûATûTHEûTIMEû VALLOUREC SETS TERMS FOR RESCUE USEDûCARûRETAILERûLASTû4UESDAYûEVENING
TOûRAISEûADDITIONALûFUNDS û!CCORûINVESTEDû RIGHTS ISSUE
õ MûINûTHEû30!#ûATû)0/ûANDûWILLûCHIPûINû 3ELLERSû06û'LOBAL û$.û#APITAL û$34 û36& û0ITON û
õ MûATûACQUISITION Steel pipe maker VALLOUREC has set the terms "RIGHTGIANTûANDû6ENTURAûWEREûFOURûMONTHSûINTOû
FORûITSûLONG
AWAITEDûõ MûRESCUEûRIGHTSû AûSIX
MONTHûLOCK
UPûENTEREDûINTOûAFTERû!UTO Sû
!CCORû!CQUISITIONûUNITSûBEGANûTRADINGûONû ISSUEûAIMEDûATûSLASHINGûDEBT õ BNû&RANKFURTû)0/ûINû&EBRUARY û4HEûSELLERSû
%URONEXTû0ARISûONû4UESDAYûANDûWEREûSOFTû AREûNOWûLOCKEDûUPûFORû ûDAYS û
DURINGûTHEûDAYûBEFOREûCLOSINGûATûõ ûANDûBYû A total of 53m new shares will be issued
&RIDAYûMORNINGûWEREûATûõ ONûAûHEFTYû
FOR
ûBASIS û0RICINGûISûõ ûPERû 4OGETHERûTHEYûSOLDû MûSHARESûATûõ û
SHARE ûREPRESENTINGûAû ûDISCOUNTûTOû4%20û EACH ûREPRESENTINGûANû ûDISCOUNTûTOûLASTû
Goldman Sachs was global coordinator, and BASEDûONûTHEûCLOSEûOFûõ ûONû*UNEû 4UESDAY Sûõ ûCLOSE ûTOûRAISEûõ M
JOINTûBOOKRUNNERûWITHûBNP Paribas
Last month the company got approval Shares traded down in response to the
BOUYGUES NEARS THE EXIT WITH FROMûTHEûCOMMERCIALûCOURTûOFû.ANTERREû transaction and closed last Wednesday at
ALSTOM ABB TOûGOûAHEADûWITHûITSûlNANCIALû õ ûTHOUGHûTHEû67!0ûFORûTHEûDAYûWASû
RESTRUCTURING ABOVEûISSUEûATûNEARLYûõ û
"OUYGUESûCOMPLETEDûITSûlNALûMAJORûSALEûOFû
shares in rail company ALSTOM last Tuesday The deal is fully backstopped by certain /NEûBANKERûATTRIBUTEDûTHEûFAIRLYûWIDEû
EVENING ûTAKINGûHOMEûõ M CREDITORSûUNDERûTHEûCOMPANY SûREVOLVINGû discount to the fact that Auto1 shares had traded
CREDITûFACILITYûANDûBONDS û4HEûRESTRUCTURINGû UPû ûINûTHEûPRECEDINGûSIXûTRADINGûDAYS û
The seller has been trimming its stake OFûITSûDEBTûINCLUDESûAûõ BNûDEBT
TO
EQUITYû 4UESDAY SûPLACINGûWASûALSOûSUBSTANTIALûATûOVERû
through accelerated bookbuilds in recent SWAP ûDAYS ûTRADING ûTHOUGHûPARTûOFûTHEûPROMPTûFORû
YEARSûANDûISûLEFTûWITHûJUSTû ûSHARES û THEûTRADEûWASûREVERSEûENQUIRYûFROMûINVESTORSû
REPRESENTINGûABOUTû ûOFû!LSTOM û BNP Paribas and Natixis Oddo BHFûAREûJOINTû LOOKINGûFORûMOREûLIQUIDITYûINûTHEûSTOCK
GLOBALûCOORDINATORS ûANDûJOINTûBOOKRUNNERSû
.OûWALL
CROSSINGûWASûREQUIREDûFORûWHATû with CIC Market Solutions. A wall-crossing meant the deal was
one banker described as “one of the most COVEREDûATûLAUNCH
EXPECTEDûNAMESûOUTûTHEREv û"OOKSûWEREû .IPPONû3TEELû#ORPORATIONûOWNSû ûOFû
COVEREDûINûABOUTû ûMINUTES 6ALLOURECûANDû ûOFûITSûVOTINGûRIGHTS ûANDû 4HEûlNALûBOOKûWASûABOUTû ûLINESûANDûTHEû
WILLûPOURûõ MûINTOûTHEûRIGHTSûISSUE û TOPû ûTOOKûABOUTûTWO
THIRDS û4HEûTOPû û
!ûTOTALûOFû MûSHARESûWEREûSOLDûINûTHEû!""û TOOKûOVERû û4HEûTOPûALLOCATIONSûWEREû
ATûõ ûEACH û4HISûREPRESENTSûAûTIGHTû û "PIFRANCEû0ARTICIPATIONSûALSOûOWNSû û skewed to long-only shareholders and wall-
DISCOUNTûTOûLASTû4UESDAY Sûõ ûCLOSE û OFû6ALLOURECûANDûHOLDSû ûOFûVOTINGû CROSSEDûACCOUNTS û/VERûHALFûWASûTAKENûBYû
RIGHTS û"PIFRANCEûWILLûCONTRIBUTEûõ MûINû LONG
ONLYûNAMES û
Shares in Alstom were robust last THEûTRANSACTION û
7EDNESDAYûANDûCLOSEDûATûõ ûUPû û 4HEûTRANSACTIONûISûNOTûTHEûlRSTû!""ûINûTHEû
FORûTHEûDAY û #HAIRMANûOFûTHEû6ALLOURECûMANAGEMENTû NAMEûASûFOUNDERSûSOLDû ûOFûTHEûCOMPANYû
BOARDû%DOUARDû'UINOTTEûANDû#%/ û#&/ûANDû in April that was outside the lock-up to cover
BNP Paribas and JP MorganûWEREûJOINTû GENERALûCOUNSELû/LIVIERû-ALLETûHAVEû TAXûLIABILITIES û3HARESûWEREûTHENûSOLDûATû
BOOKRUNNERS indicated their intention to participate in õ ûAPIECE û
the rights issue at least to the amount of
The deal was multiple times subscribed SHARESûTHEYûCURRENTLYûOWN û BNP Paribas, Citigroup, Deutsche Bank and
and allocations were skewed towards long- Goldman SachsûWEREûJOINTûBOOKRUNNERSûONû
6ALLOURECûISûLOCKED
UPûFORû ûDAYS 4UESDAY SûSELL
DOWN û4HEûFOURûBANKSûWEREû
EMEA COMMON STOCK ISSUER LEGAL ADVISERS 3HARESûGOûEX
RIGHTSûONû*UNEû û!û TOPûLINEûONûTHEû)0/ ûWHICHûPRICEDûATûõ ûAû
1/1/2021 TO 31/5/2021 subscription period runs from June 8 until SHARE û
*UNEû û!ûRESULTûWILLûFOLLOWûONû*UNEû
No of Total Share
Legal adviser issues US$(m) (%) EMEA COMMON STOCK MANAGER LEGAL ADVISERS
1/1/2021 TO 31/5/2021
1 Freshfields 7 9,264.6 7.9
Bruckhaus Deringer
8 7,478.9 6.3 Legal adviser No of Total Share EMEA EQUITIES
2 Davis Polk & 1 Linklaters issues US$(m) (%) BOOKRUNNERS: 1/1/2021 TO DATE
Wardwell 1 2 Latham & Watkins 13,849.2 11.7
10 6,131.8 5.2 3 Clifford Chance 15 8,089.9 6.9 Managing No of Total Share
3 Uria Menendez 5 5,503.5 4.7 4 White & Case 11 5,964.1 5.1 bank or group issues US$(m) (%)
5,124.7 4.3 5 Davis Polk & 4 4,501.0 3.8
4 Latham & Watkins 2 10 4,096.9 3.5 1 Morgan Stanley 45 12,022.07 10.0
2 4,156.5 3.5 Wardwell 12 2 Goldman Sachs 51 10,531.13 8.7
5 Herbert Smith 4,057.4 3.4 6 Freshfields 4,071.3 3.5 3 JP Morgan 55 9,302.12 7.7
Freehills 4 4 4 Citigroup 41 7,279.26 6.0
3 3,999.6 3.4 Bruckhaus Deringer 3,676.6 3.1 5 Bank of America 34 6,613.11 5.5
6 Stibbe 1 3,973.3 3.4 7 Bruun & Hjejle I/S 1 2,749.6 2.3 6 Barclays 31 5,783.88 4.8
3,915.5 3.3 8 Hengeler Mueller 1 2,035.9 1.7 7 Jefferies 48 5,264.59 4.4
7 CMS Cameron 549 9 Cooley 7 1,977.2 1.7 8 BNP Paribas 29 4,598.74 3.8
McKenna Nabarro 10 Baker Mckenzie 19 117,993.0 9 Danske Bank 21 3,265.86 2.7
Olswang 117,993.0 549 10 Credit Suisse 16 3,258.64 2.7
Total 557 120,405.75
8 Sullivan & Cromwell Total

9 Plesner

10 Weil Gotshal &
Manges

Total

Full deal credit is given to all legal advisers Full deal credit is given to all legal advisers Including all domestic and international deals and rights issues
Source: Refinitiv
Source: Refinitiv SDC code: AX3 SDC code: AX4 Source: Refinitiv SDC code: C4cr

78 International Financing Review June 5 2021

EQUITIES EMEA

ISRAEL :IMûISûBENElTINGûFROMûSURGINGûDAYû 4HEûlNALûBOOKûWASûMULTIPLEûTIMESû
CHARTERûRATESûFORûCONTAINERSHIPS û,ASTûMONTH û subscribed at the offer price with strong
MONDAY.COM GETS TO WORK ON ITûANNOUNCEDûPLANSûTOûPAYûAûSPECIALû53 û support from international and local
US$500m-PLUS IPO one-time dividend to holders of record on INVESTORSûANDûVARIOUSûFAMILYûOFlCES
3EPTEMBERû û:IMûALSOûPLANSûTOûPAYûOUTû
&AST
GROWINGûhLOW
CODE NO
CODEvûWORKû n ûOFû ûEARNINGS Allocations were heavily skewed towards
SOFTWAREûlRMûMONDAY.COM revealed alongside LONG
ONLYûNAMESûANDûHIGHLYûCONCENTRATED û
THEûLAUNCHûOFûITSû M
PLUSû.ASDAQû)0/ûONû Analysts at Clarksons Platou ûAûJOINTû Several investors were zeroed and the top 15
Tuesday that it had secured separate BOOKRUNNERûONûTHEû)0/ ûAREûFORECASTINGûAû ORDERSûTOOKûUPWARDSûOFû ûOFûTHEûOFFER
INVESTMENTSûOFû53 MûEACHûFROMûSECTORû ûYEAR
ENDûPAYOUTûOFû53 n ûPERû
HEAVYWEIGHTSû3ALESFORCE COMûANDû:OOMû SHAREûBASEDûONûESTIMATEDûEARNINGSûOFû53 Berenberg and Intermonte SIMûWEREûJOINTû
6IDEOû#OMMUNICATIONS BOOKRUNNERS
Aided by its dividend-paying potential,
4HEû)0/ûWILLûSEEû-ONDAY COMûSELLû Mû :IMûALSOûHASûREPAIDû53 MûOFûDEBTûFROMû 4RADINGûWILLûBEGINûONû*UNEû û
SHARES ûJUSTû ûOFûOUTSTANDING ûATû53 n EXCESSûCASHûGENERATEDûSINCEûTHEû)0/
$140 each for pricing post-close this LITHUANIA
7EDNESDAY û*UNEû A strategic relationship with Maersk and
-3#ûALLOWSû:IMûTOûCONTROLûTHEûNUMBERûOFû BALTIC CLASSIFIED OPTS FOR
Goldman Sachs, JP Morgan, Allen and Jefferies ships it operates and focus on high-demand LONDON LISTING
LEADûAû
lRMûUNDERWRITINGûSYNDICATE !SIAn53ûROUTESûANDûROUTESûWITHINû!SIA û:IM Sû
mEETûSTOODûATû ûSHIPSûASûOFû-ARCHû BALTIC CLASSIFIED, an operator of online
The combined US$150m investment from AUTOMOTIVE ûJOBSûANDûREALûESTATEûCLASSIlEDSû
3ALESFORCEûANDû:OOMûISûVIAûAûSEPARATEûPRIVATEû h7EûMIGHTûlNISHûTHEûYEARûATû ûORûATû portals in Lithuania, Estonia and Latvia, has
placement and in addition to the proceeds vûSAIDû:IMû#&/û8AVIERû$ESTRIAU ûh4HISû OPTEDûTOûmOATûITSûSHARESûINû,ONDON û
RAISEDûFROMûTHEû)0/ WILLûBEûDRIVENûBYûOURûANALYSISûOFûPROlTABILITYû
OFûEACHûOFûTHEû;ROUTES=ûWEûOPERATE v 4HEû)0/ûWILLûCOMPRISEûBOTHûNEWûANDû
-ONDAY COMûHASûCREATEDûWHATûITûARGUESûISû existing shares, with the latter to be sold by
AûNEWûSOFTWAREûCATEGORYûCALLEDûh7ORKû/3v û (IGHûDEMANDûSAWû:IMûLIFTûSHIPPINGûRATESû PRIVATEûEQUITYûOWNERû!PAXû0ARTNERS û
7ORKû/3 ûACCORDINGûTOûITSû)0/ûROADSHOW û PERûTONûSHIPPEDûBYû ûTOû53 ûINûTHEû
provides building blocks to enable its lRSTûQUARTER 0RE
MARKETINGûISûSETûTOûBEGINûONû*UNEû û
customers to create their own enterprise ACCORDINGûTOûAûBANKERûINVOLVED û
SOFTWARE :IMûHASûALSOûUPPEDûITSûFORECASTû%BITDAûFORû
ûTOû53 BNn BN ûFROMûITSûPREVIOUSû "ALTICû#LASSIlEDûDREWû MûVISITSûONû
!SûOFûTHEûENDûOFûTHEûlRSTûQUARTER û-ONDAY FORECASTûOFû53 BNn BN AVERAGEûPERûMONTHûINûTHEûlNANCIALûYEARû
com had annualised “run-rate” revenues of ENDEDû!PRILû û ûTHEûEQUIVALENTûTOû û
53 M ûUPû ûINûTHEûPASTûYEAR ITALY VISITSûPERûMONTHûFORûEACHû"ALTICûCITIZEN û
ACCORDINGûTOûTHEûCOMPANY
Though the offering is all-primary, a ITALIAN SEA GROUP IPO RAISES €82m
tiered lock-up release schedule begins 90 WITH MID-POINT PRICING 2EVENUEûWASûõ MûINûTHEûYEARûENDEDû
DAYSûAFTERûTHEû)0/ !PRILû û ûANDûADJUSTEDû%BITDAûWASû
The ITALIAN SEA GROUP HASûWRAPPEDûUPûAûõ Mû õ M û
ZIM INSIDERS SELL US$279m OF STOCK -ILANû)0/ ûPRICINGûSHARESûINûTHEûMIDDLEûOFû
THEûPRICEûRANGE û Bank of America and BNP ParibasûAREûJOINTû
(AVINGûOVERCOMEûINVESTORûSCEPTICISMû BOOKRUNNERS
when it went public early this year to &INALûPRICINGûWASûõ ûPERûSHARE ûTHEûMID

SINCEûBECOMEû SûBESTûPERFORMINGû53û POINTûOFûTHEûINITIALûõ nõ ûRANGE ûANDû NETHERLANDS
)0/ û.93%
LISTEDû)SRAELIûCONTAINERûSHIPPERû the top of narrowed price guidance of
ZIM INTEGRATED SHIPPING SERVICES returned õ nõ NX FILTRATION LAUNCHES ALL-PRIMARY
WITHûANûUPSIZEDû53 MûALL
SECONDARYû IPO WITH CORNERSTONES ON BOARD
stock sale inside the six-month As announced at the beginning of pre-
ANNIVERSARYûOFûITSû)0/ MARKETING û)TALIANûFASHIONûHOUSEû'IORGIOû NX FILTRATION ûAûMAKERûOFûWATERûlLTRATIONû
!RMANIûANDû"ELGIANûBILLIONAIREû-ARCû MEMBRANES ûISûTARGETINGûõ Mnõ Mû
After three days of marketing, Citigroup, #OUCKE SûFAMILYûINVESTMENTûCOMPANYûWEREû from a Euronext Amsterdam listing, with at
Goldman Sachs and Barclays late on Thursday allocated their cornerstone orders of 5% and least a third already covered by two new
PRICEDûTHEûSALEûOFû Mû:IMûSHARESûATû53 ûAû ûRESPECTIVELY ûOFûTHEûYACHTûMAKER SûPOST
CORNERSTONEûINVESTORS û
ûlLE
TO
OFFERûDISCOUNT MONEYûOUTSTANDINGûSHARES
- 'û)NVESTMENTSûANDû4ESLINû#APITALû
The offering was increased in size from 4HISûAMOUNTEDûTOûõ MûFROMû#OUCKEûANDû -ANAGEMENTûWILLûINVESTûõ MûEACHûASû
MûSHARESûATûLAUNCHûANDûCAMEûWELLûABOVEû õ MûFROMû!RMANI CORNERSTONES û.8û&ILTRATION SûCURRENTûMAJORû
THEû53 ûPRICEûOFû:IM SûALL
PRIMARYû SHAREHOLDERû)NFESTOSûHASûALSOûCOMMITTEDûTOûAû
53 Mû)0/ûINû*ANUARY A total of 18m shares were placed in the õ MûCORNERSTONEûORDER
BASEûDEAL û4HEûCOMPANYûSOLDû MûNEWû
%ARLYûINû&RIDAY SûSESSION û:IMûSHARESûWEREû SHARESûFORûAûCASHûRAISEûOFûõ M û Mû 4HEûCOMPANY SûMEMBRANESûENABLEûTHEû
TRADINGûATû53 ûSTILLû ûABOVEûTHEû)0/û existing shares for secondary proceeds of production of drinking water from polluted
and to still rank it the top-performing US õ MûANDû MûSHARESûFROMûANûUPSIZEûOPTIONû rivers, reducing discharge of pollutants into
STOCKûLISTINGûOFû FORûANûEXTRAûõ MûFORûFOUNDERûANDû#%/û the environment and reducing the water
'IOVANNIû#OSTANTINO ûTHEûONLYûSELLER û FOOTPRINTûOFûINDUSTRIALûCUSTOMERS
The stock sale saw King Street Capital
-ANAGEMENT û'REEKûSHIPPERû$ANAOSûANDûANû A 10% greenshoe would see Costantino .8û&ILTRATIONûWASûFOUNDEDûINû û)Tû
AFlLIATEûOFû$EUTSCHEû"ANKûCUTûTHEIRû TAKEûHOMEûANûEXTRAûõ M û(EûISûLOCKEDûUPûFORû entered into the commercialisation phase in
COMBINEDûSTAKEûTOû ûMONTHS ûALONGûWITHûTHEûCOMPANY û ûANDûACHIEVEDûõ MûINûREVENUESûWITHû
ANûASSOCIATEDûGROSSûMARGINûOFû ûINû û
)SRAEL Sû+ENON û:IM SûTOPûSHAREHOLDERû 4HEûmOATûGIVESûTHEûYACHTûMAKERûAûMARKETû
WITHû ûDIDûNOTûSELLûANYûSHARESûINûTHEû CAPITALISATIONûOFûAROUNDûõ MûONû !ûBANKERûINVOLVEDûSAIDûTHEûFACTûTHATû.8û
OFFERING ADMISSION ûANDûAûFREE
mOATûOFû ûIFûTHEû &ILTRATION SûPROCESSûDOESûNOTûUSEûPRE

GREENSHOEûISûEXERCISED û

International Financing Review June 5 2021 79

treatment chemicals is appealing to The pure-play company produces over 1m SPAIN
sustainability-focused investors, but that the OUNCESûOFûGOLDûAûYEAR û)TûRECORDEDûMOREûTHANû
DEALûWILLûAPPEALûTOûGENERALISTSûANDû%3'û 53 BNûOFûADJUSTEDû%BITDAûINû PRIMAFRIO AIMS TO REFRESH SPANISH
SPECIALISTSûALIKE û MARKET WITH €400m IPO
.ORDGOLDûOPERATESûNINEûMINES û
%3'ûRATINGSûAGENCYû#ICEROûHASûGIVENûMOREû COMPRISINGûFOURûINûTHEû2USSIANû&EDERATION û 2EFRIGERATEDûTRANSPORTûCOMPANYûPRIMAFRIO
THANû ûOFûTHEûCOMPANY SûREVENUEûANDû ONEûINû+AZAKHSTAN ûTHREEûINû"URKINAû&ASOû has kicked off pre-marketing for an all-
investments its highest ranking of dark ANDûONEûINû'UINEA SECONDARYû3PANISHû)0/ûTHATûCOULDûRAISEû
GREEN AROUNDûõ M ûACCORDINGûTOûAûBANKERû
Citigroup, JP Morgan and VTB Capital are INVOLVEDûINûTHEûDEAL û
Extensive meetings with investors have JOINTûGLOBALûCOORDINATORS ûANDûJOINTû
already taken place, and the timetable will bookrunners with BMO Capital Markets, )FûITûGOESûAHEADûITûWILLûBEûTHEûBIGGESTû
be slightly condensed from a two-plus-two Credit Suisse, Bank GPB International and 3PANISHûmOATûSINCEû3PANISHûHOMEBUILDERû
PROCESS û Renaissance Securities. Peel Hunt is lead -ETROVACESAûRAISEDûõ MûINû&EBRUARYû û
MANAGER Spanish renewable energy company
ABN AMRO Oddo BHF and Berenberg are /PDENERGYûHADûHOPEDûTOûACHIEVEûTHATûSTATUSû
JOINTûBOOKRUNNERS û!".û!-2/ûISû 2USSIANûBILLIONAIREû!LEXEYû-ORDASHOVûANDû WITHûITSûõ Mû)0/ûLASTûMONTH ûBUTûTHATûWASû
STABILISATIONûMANAGER HISûTWOûSONSûOWNû.ORDGOLD cancelled in the wake of domestic peer
'RUPOû%COENERûTRADINGûDOWNûFOLLOWINGûITSû
There will be a 15% secondary greenshoe &ELLOWû2USSIANûGOLDûMINERûGV GOLD )0/
FROMû)NFESTOS ûANDûTHEûFREE
mOATûWILLûBEûATû CANCELLEDûAû-OSCOWû)0/ûONûTHEûlNALûDAYûOFû
LEASTû bookbuilding in late March, having targeted 0RIMAFRIOûCOULDûBEûVALUEDûATûAROUNDû
2BS BNû 53 M ûCITINGûMARKETû õ BN ûBASEDûONûAûPROJECTEDûMINIMUMûFREE

!BOUTûõ Mnõ MûOFûTHEûFRESHûPROCEEDSû VOLATILITY û)TûHADûPREVIOUSLYûTRIEDûTOûmOATûINû mOATûOFû
WILLûBEûUSEDûFORûTHEûCOMPANY SûCOMMERCIALû û
ROLL
OUT û!ûFURTHERûõ Mnõ MûWILLûBEûUSEDû 0RIMAFRIOûOWNSûAûmEETûOFûTEMPERATURE

FORûCAPACITYûEXPANSIONûANDûõ Mnõ MûFORû HEFTY DISCOUNT ON US$166.5m controlled trucks for the export and import
2 $ û,ESSûTHANûõ MûISûEARMARKEDûFORû HEADHUNTER SALE of products across Europe, mainly fruit and
ACQUISITIONS vegetables and also pharmaceutical
The two biggest shareholders in PRODUCTS û)TSûMAINûMARKETSûAREû'ERMANY û
NORWAY .ASDAQ
LISTEDû2USSIANûONLINEû 3PAINûANDûTHEû5+ û
recruitment platform HEADHUNTER were
ATLANTIC SAPPHIRE RAISES NKr1bn forced to absorb a hefty discount in The sellers are Juan and Jose Esteban
ORDERûTOûOFmOADû53 MûOFûSTOCKûINûAû #ONESA ûTHEûSONSûOFûTHEûCOMPANY SûFOUNDERS û
.ORWEGIANû3ALMONûFARMERûATLANTIC SAPPHIRE one-day marketed offering priced late The duo currently own 100% of the company
RAISEDû.+R BNû 53 M ûONû4HURSDAYû ONû7EDNESDAY and are committed to together remaining
EVENINGûINûANûACCELERATEDûBOOKBUILD THEûMAJORITYûSHAREHOLDERûPOST
)0/ û
Joint bookrunners Goldman Sachs and
!ûTOTALûOFû MûSHARESûWEREûSOLDûATû Morgan Stanley led the all-secondary sale of The fact that the business is family owned
.+R ûmATûTOûTHEû4HURSDAYûCLOSE û Mû(EAD(UNTERû!$3S ûREPRESENTINGû û is appealing to investors, the banker said, as
through bookrunners Arctic Securities, Bank of OFûTHEûCOMPANY û0RICINGûCAMEûATû53 ûPERû WELLûASûITSû%3'
FRIENDLYûAPPROACHûTOû
America and DNB Markets SHARE ûANû ûALL
INûDISCOUNT EFlCIENCY ûTECHNOLOGYûFOCUSEDûONûLOWERINGû
CARBONûEMISSIONSûANDûITSûPROlTABILITYûANDû
4HEûPROCEEDSûWILLûBEûUSEDûFORûlNANCINGû 4HEû!$3SûEARLIERûSLUMPEDû ûTOû53 û PLANNEDûDIVIDEND û
expansion and for general corporate INû7EDNESDAY SûSESSIONûASûTHEûOFFERINGûWASû
PURPOSES PITCHEDûTOûINVESTORS û)Nû4HURSDAY Sû 0RIMAFRIOûRECORDEDûREVENUESûOFûõ MûINû
AFTERMARKET ûTHEû!$3SûCLOSEDûATû53 ûTOû û%BITûWASûõ MûINû ûMOREûTHANû
"OARDûMEMBERû!NDREû3KARBOûBOUGHTû deliver modest gains for buyers of the DOUBLEûTHEûõ MûITûRECORDEDûINû û4HEû
ûSHARESûANDûBOARDûMEMBERû4ONEû OFFERING CASHûCONVERSIONûRATIOûFORû ûWASû û
"JORNOVûBOUGHTû ûSHARES which the company said sustains its mid-
4HEûSTOCKûSALEûENABLEDû(EAD(UNTER SûTWOû TERMûDIVIDENDûPAY
OUTûTARGETûOFûATûLEASTû
Atlantic Sapphire last raised cash in biggest investors, Elbrus Capital and an
3EPTEMBERû ûWHENûITûSOLDû MûSHARESû INVESTMENTûVEHICLEûCONTROLLEDûBYû'OLDMAN û The fruit and veg logistics industry
ATû.+R ûFORû.+R M TOûEACHûSELLû Mû!$3S PRESENTSûHIGHûBARRIERSûTOûENTRY ûREQUIRINGû
EXTENSIVEûmEETSûOFûTRUCKSûWITHûSPECIlCû
RUSSIA %LBRUS ûTHEû2USSIA
FOCUSEDûPRIVATEû temperature controls for transporting the
EQUITYûlRM ûCUTûITSû(EAD(UNTERûSTAKEûTOû FRESHûPRODUCE û0RIMAFRIOûHASûMOREûTHANû
NORDGOLD TO RETURN TO LSE ûFROMû ûPREVIOUSLY û4HEû ûCLIENTS û#LIENTûRETENTIONûISûHIGH ûWITHû
'OLDMANûVEHICLE SûHOLDINGûFELLûTOû û more than 80% of revenues generated from
'OLDûMINERûNORDGOLD is to try its luck FROMû û4HEREûISûAû
DAYûLOCK
UPûONû CLIENTSûWITHûAûMOREûTHANûlVE
YEARû
mOATINGûINû,ONDON ûWHILEûSEEKINGûAû FURTHERûSALES RELATIONSHIPûWITHûTHEûCOMPANY
SECONDARYûLISTINGûINû-OSCOW û
The offering came 11 months after the 4HEREûAREûNOûOBVIOUSûPEERSûFORû0RIMAFRIOû
A registration document was posted last 'OLDMANûVEHICLEûSOLDû Mû(EAD(UNTERû!$3Sû according to the banker, but the main
Thursday for the deal, which will be all ATû53 û%LBRUSûDIDûNOTûSELLûONûTHATû comps are Swiss logistics company Kuehne +
secondary and will give the company a 25% occasion, though both sold shares as part of .AGELûANDû$ENMARK Sû$36
FREE
mOAT û (EAD(UNTER Sû-AYû û)0/ûPRICEDûATû
53 ûPERû!$3 4HEûCOMPANY SûHEADQUARTERSûAREûINû
)TûPREVIOUSLYûHADûAû'$2ûLISTINGûINû,ONDON û -URCIA ûONûTHEûSOUTH
EASTERNûCOASTûOFû3PAIN û
having been spun off from Severstal in (EAD(UNTER ûWHICHûISûINCORPORATEDûINû one of the largest fruit and vegetable
*ANUARYû û)TûDELISTEDûINû ûSAYINGûITSû #YPRUSûBUTûHEADQUARTEREDûINû-OSCOW û PRODUCINGûREGIONSûINû%UROPE
market capitalisation at the time failed to EARLIERûREVEALEDûITSûlRST
QUARTERûREVENUEû
VALUEûITûAPPROPRIATELY û4HEûMINERûISûSEEKINGû SURGEDû ûTOû2BS BNû 53 M ûANDû 0RE
MARKETINGûBEGANûLASTû4UESDAYûANDûWASû
AûPREMIUMûLISTINGûONûITSûRETURNûTOûMARKET forecast 45%–50% top-line growth this SETûTOûLASTûJUSTûOVERûAûWEEK û
YEAR

80 International Financing Review June 5 2021

EQUITIES EMEA

JP Morgan and Morgan StanleyûAREûJOINTû There is a 10% primary greenshoe and the ISSUEûOFû MûSHARESûANDûUPûTOûa MûONûTHEû
GLOBALûCOORDINATORS ûANDûJOINTûBOOKRUNNERSû FREE
mOATûWILLûRISEûFROMû ûTOû ûIFûITûISû basis of Ebitda targets over the three years
with Berenberg, Caixabank, Santander and EXERCISED ONCEûTHEûACQUISITIONûCOMPLETES û
Societe Generale.
SEBûWASûBOOKRUNNER 4HEûCOMPANYûSOLDû MûNEWûSHARESûATû
Alantra, Commerzbank, Kempen, and JB 95p each to raise £55m that will cover the
Capital MarketsûAREûCO
LEADûMANAGERS UK cash portion of the Taylor Maxwell purchase
ANDûFUTUREûBOLT
ONûACQUISITIONS û
SWEDEN MADE.COM INITIATES PRE-MARKETING "RICKABILITY SûMARKETûCAPITALISATIONûWASû
ABOUTûa MûATû4UESDAY SûCLOSE
PERMASCAND SHARES UP 8% ON DEBUT UK online furniture company MADE.COM
started pre-marketing last Tuesday for a Some shareholders took the opportunity
Shares in Swedish electrochemical company ROUGHLYûa Mû,ONDONûmOAT ûAûWEEKûAFTERûITû to sell 40m shares at the same time, raising
PERMASCAND rose 8% on their debut on the POSTEDûAûREGISTRATIONûDOCUMENT a M
.ASDAQû&IRSTû.ORTHû0REMIERû'ROWTHû-ARKET
4HEû)0/ûWILLûVALUEûTHEûCOMPANYûATûa BNn 0RICINGûOFû PûREPRESENTSûANû ûDISCOUNTû
3HARESûCLOSEDûATû3+R ûONû&RIDAY û a BN TOûLASTû4UESDAY SûCLOSEûOFû P
FROMû3+R ûPRICING
0RE
MARKETINGûWILLûLASTûUNTILû*UNEû ûANDûALLû The shares closed last Wednesday at 100p,
The company wrapped up a SKr505m OTHERûDATESûAREûTOûBEûCONlRMED DOWNû
53 M û)0/ûONû4HURSDAYûWITHû Mû
SHARESûATûlXEDûPRICINGûOFû3+R JP Morgan and Morgan Stanley AREûJOINTû "RICKABILITY SûDIRECTORSûANDûMANAGEMENTû
bookrunners, and Liberum is co-lead RETAINûABOUTû ûOFûTHEûCOMPANYûPOST

0ERMASCANDûSAIDûTHEûDEALûATTRACTEDûVERYû MANAGER MONEY ûDOWNûFROMûAPPROXIMATELYû
strong interest from Swedish and
international investors as well as the MAREX KICKS OFF BOOKBUILDING FOR 4HEûPRIMARYûPLACINGûANDûACQUISITIONûAREû
public in Sweden and was heavily LONDON FLOAT conditional on a shareholder vote at a
OVERSUBSCRIBED û GENERALûMEETINGûONû*UNEû
"OOKSûHAVEûOPENEDûFORûCOMMODITIESûBROKER
!ûTOTALûOFû MûNEWûSHARESûWEREûSOLDûFORûAû MAREX SPECTRON GROUP SûALL
SECONDARYû The UK building supplies company carried
primary raise of SKr212m, and a secondary a Mna Mû,ONDONû)0/ û OUTûAûa Mû,ONDONû)0/ûINû!UGUSTû û
COMPONENTûCOMPRISEDû MûSHARESûONûSALEû PRICINGûTHEûSHARESûATû PûEACH
FROMûSHAREHOLDERSûLEDûBYû.ORVESTOR Goldman Sachs and JP Morgan are global
coordinators, and bookrunners with The shares hit an all-time high of 105p on
The deal gave the company a market Barclays. Peel HuntûISûCO
LEADûMANAGER 4UESDAYûAHEADûOFûTHEûPLACING û4HEYûHAVEû
CAPITALISATIONûOFû3+R BNûANDûAûFREE
mOATûOFû BEENûRISINGûSTEADILYûSINCEû/CTOBERû û
û4HISûWILLûRISEûTOû ûIFûAû û !ûTOTALûOFû Mn MûSHARESûAREûONû WHENûTHEYûWEREûAROUNDû PûEACH
SECONDARYûGREENSHOEûFROMû.ORVESTORûISû OFFERûINûTHEûBASEûDEALûATû Pn PûEACH û
EXERCISED û !MPHITRYONûANDû/CEANû2INGû*ERSEYûAREûTHEû 4AYLORû-AXWELLûISû"RICKABILITY Sû THû
selling shareholders and along with Marex ACQUISITIONûSINCEû
As announced at the beginning of pre- WILLûBEûLOCKEDûUPûFORû ûDAYS û$IRECTORSûOFû
marketing on May 18, cornerstones -AREXûWILLûBEûLOCKEDûUPûFORû ûDAYS Cenkos Securities was bookrunner, having
,ANSFORSAKRINGARû&ONDFORVALTNING û2!-û/NEû ALSOûLEDûTHEû)0/.
ANDû3%"û)NVESTMENTû-ANAGEMENTûBOUGHTû A 15% greenshoe could increase proceeds
3+R MûOFûTHEû)0/ û#OLLECTIVELYûTHEIRû TOûa Mna M UK RESIDENTIAL REIT TO FLOAT IN
CORNERSTONEûORDERSûREPRESENTû ûOFû LONDON
0ERMASCANDûPOST
)0/ û 4HEûFREE
mOATûWILLûBEûATûLEASTû ûRISINGûTOû
ûPOST
GREENSHOE UK RESIDENTIAL REIT is targeting £150m in
ABG Sundal Collier and CarnegieûWEREûJOINTû Aû,ONDONûLISTINGûRUNûBYûJOINTû
BOOKRUNNERS )NVESTORSûAREûLOOKINGûATûTHEûBUSINESSûONûAû bookrunners Panmure Gordon and RBC
0 %ûBASISûANDûTHEûBOTTOMûOFûTHEûRANGEû Capital Markets.
MILDEF SLIGHTLY UP IN STOCKHOLM REPRESENTSû ûTIMESû0 %ûFORû û4HEûRANGEû
gives Marex an implied market cap of 4HEû2%)4ûWILLûINVESTûINûAFFORDABLE û
MILDEF GROUP ûAû3WEDISHûSUPPLIERûOFûTACTICALû)4û a Mna M û privately rented residential assets outside of
systems for security and defence customers, ,ONDON
SAWûITSûSHARESûRISEû ûINû3TOCKHOLMûONû&RIDAY û "OOKSûAREûOPENûUNTILû*UNEû ûWITHûPRICING û
ALLOCATIONSûANDûTRADINGûTHEûFOLLOWINGûDAY û 4HEû)0/ûPROCEEDSûWILLûBEûFUNNELEDûINTOû
4HEûCOMPANYûWRAPPEDûUPûAû3+R Mû 0REnMARKETINGûBEGANûONû-AYû a £145m seed portfolio of 28 properties,
53 M û)0/ûOFû MûSHARESûOFFEREDûATûAû COMPRISINGû ûRESIDENTIALûUNITS û
lXEDû3+R ûANDûTHEûSHARESûCLOSEDû&RIDAY Sû )NVESTORSûAREûVALUINGû-AREXûAGAINSTû5+û
DEBUTûATû3+R û4HEYûHADûBEENûTRADINGû shipping brokerage Clarkson, Amsterdam- 4HEû)0/ûCOMPRISESû MûSHARESûATû Pû
ABOUTû ûUPûATûAROUNDû PM û LISTEDû&LOWû4RADERS ûTHEû53 Sû3TONE8 û40û)#!0û each, while 50m shares will be issued for the
INûTHEû5+ûANDû.EWû9ORK
LISTEDû6IRTUû ACQUISITIONûOFûTHEûSEEDûASSETS ûGIVINGûANû
!TûTHEû3+R û)0/ûPRICINGûTHEûCOMPANYû &INANCIAL INITIALûMARKETûCAPITALISATIONûOFûa M û
HASûAûMARKETûCAPITALISATIONûOFû3+R M û
BRICKABILITY PLACING RAISES £93m FOR The seed assets have fared well during the
!ûTOTALûOFû MûSHARESûWEREûSOLDûINûTHEû ACQUISITION AND SHAREHOLDERS Covid-19 downturn, according to UK
offering, of which 11m were new for a 2ESIDENTIALû2%)4 û2ENTûCOLLECTIONûINû ûWASû
CAPITALûRAISEûOFû3+R M ûANDû MûWEREû !)-
LISTEDûBRICKABILITY GROUP raised £55m in ûANDûAVERAGEûOCCUPANCYûINûTHEûLASTûTWOû
SECONDARYûFORûPROCEEDSûOFû3+R M fresh cash last Tuesday evening to fund a YEARSûWASû
PROPOSEDûACQUISITIONûINûAûPLACINGûTHATûALSOû
Cornerstones Svolder, Carnegie Fonder, SAWûSOMEûSHAREHOLDERSûSELLûSHARESûFORûa M û )0/ûPROCEEDSûWILLûALSOûGOûTOWARDSûAûa Mû
'RENSPECIALISTEN û,-+û6ENTUREû0ARTNERSûANDû pipeline of further investment
a consortium of Erik Syren, Martin "RICKABILITYûHASûCONDITIONALLYûACQUIREDû5+û OPPORTUNITIES û
"JARINGER û4EDDEû*EANSSONûANDû#ARLû2OSVALLû timber and cladding supplier Taylor
HADûCOMMITTEDû3+R M Maxwell for a cash payment of £40m, the 4HEû2%)4ûISûAIMINGûTOûDELIVERûAû û
dividend yield from July 1 2022 once fully
invested, and a net total shareholder return
OFû û

The trust will be managed by L1 Capital
5+û0ROPERTYû!DVISORS ûWHOSEûMANAGEMENTû

International Financing Review June 5 2021 81

TEAMûANDûTHEIRûAFlLIATESûWILLûCOLLECTIVELYû of massive trading volumes in its stock and Quarantining and lockdown measures have
own a minimum of £5m in shares in the an extraordinary near-doubling of its share resulted in furloughs and lay-offs,
TRUST û price on Wednesday (the stock is now up dramatically increasing stressors and
more than 2,000% in 2021) to complete a leading to poorer overall mental and
A prospectus will be published in early 53 MûAT
THE
MARKETûORûDRIBBLE
OUTû PHYSICALûHEALTH vû
*UNE û4HEûRESULTSûOFûTHEûISSUEûANDûTRADINGûAREû OFFERINGûWITHINûHOURS
EXPECTEDûINûMID
*ULY û !CADIAû(EALTHCARE ûTHEûOBVIOUSûPUBLICû
!-# SûSALESûAGENTSûB Riley Securities and COMPûWITHûOPERATIONSûINû û53ûSTATES û0UERTOû
AQUILA ENERGY EFFICIENCY TRUST CitigroupûSOLDû MûSHARESûATûANûAVERAGEû 2ICOûANDûTHEû5+ ûHASûSEENûITSûSHARESûSOARû
MAKES LSE DEBUT PRICEûOFû53 ûBYûFARûTHEûLARGESTûINûAû some 30% this year alone on a growing need
series of ATMs it has priced in the past year for mental health services arising from the
Shares in AQUILA ENERGY EFFICIENCY TRUST to improve its balance sheet while it still PANDEMIC
debuted in London last Wednesday, ticking BURNSûCASH
UPû 4HROUGHûAûCOMBINATIONûOFûACQUISITIONSû
AMC, whose thousands of cinemas in the and organic expansion, Lifestance
3HARESûCLOSEDûATû PûEACH ûFROMû)0/û US and Europe have been near emptied by HIGHLIGHTEDûTHATûGROWTHûBYûREPORTINGûlRST

PRICINGûOFû P Covid-19, also said late on Thursday it was QUARTERûADJUSTEDû%BITDAûOFû53 MûASû
seeking shareholder approval to increase its REVENUEûMOREûTHANûDOUBLEDûTOû53 M
4HEûTRUSTûCOMPLETEDûAûa Mû,3%û)0/ûLASTû authorised shares by 25m after heavy stock
week, having initially targeted proceeds of issuance in the past year (a roughly 400% 4HEû)0/ûTARGETSûANûENTERPRISEûVALUEûOFû
UPûTOûa M increase) pushed its share count close to its ROUGHLYû53 BN ûORû
TIMESûREVENUEû
ALLOWEDûLIMIT GENERATEDûOVERûTHEûPASTû ûMONTHS
Peel Hunt WASûBOOKRUNNER
Elsewhere, and in another sign that blank 40' ûWHICHûINVESTEDûINûTHEûBUSINESSûINû
AMERICAS CHEQUEûCOMPANIESûMAYûBEûMOVINGûBACKûINTOû May last year in a deal that saw Summit
THEûSPOTLIGHT ûHEDGEûFUNDûMANAGERû"ILLû 0ARTNERSûANDû3ILVERSMITHû#APITALû0ARTNERSû
UNITED STATES !CKMANûCONlRMEDûTHISûMORNINGûHISû PARTIALLYûCASHûOUT ûISûSELLINGû MûSHARESûTOû
0ERSHINGû3QUAREû4ONTINEû30!#ûWASûINûTALKSû REDUCEûITSûSTAKEûTOû û!FTERûCOLLECTINGû
BUSY WEEK LOOMS FOR US ECM to buy a 10% stake, worth US$4bn, in 53 BNûCASHûONûTHEûACQUISITION û3UMMITû
6IVENDI
OWNEDûRECORDINGûLABELû5NIVERSALû and Silversmith are also selling to reduce
US syndicate desks will step up the pace of -USIC û4HISûCOMESûAHEADûOFû5NIVERSAL Sû THEIRûSTAKESûTOû ûANDû
ECM activity next week ahead of what %URONEXTû!MSTERDAMûLISTINGûLATERûTHISûYEAR
increasingly looks like a hectic June and July $ESPITEûITSû0%ûPEDIGREE û,IFESTANCEûISû
IFûMARKETûCONDITIONSûHOLD LIFESTANCE SEEKS US$680m DOSING conservatively leveraged with debt
FROM IPO REPAYMENTûFROMûTHEû)0/ûREDUCINGûTOTALû
4HOUGHûONLYûONEû53û)0/ûPRICEDûINûTHEûPASTû BORROWINGSûTOû53 M
WEEK ûAû53 Mû.ASDAQûOFFERINGûFROMû Just a year after recapitalising the business
hotly sought after Uruguay-based payments and wasting no time in capitalising on a Lifestance is marketing itself on a large
lRMûDLOCAL, the coming week will see Covid-induced surge in mental illness, a addressable market and its ability to employ
GREATERûACTIVITY 40'
LEDûCONSORTIUMûOFûPRIVATEûEQUITYûlRMSû balance sheet capacity to consolidate a
is looking to take LIFESTANCE HEALTH public via FRAGMENTEDûAREAûOFûHEALTHCARE
Six companies are seeking to raise Aû53 Mû)0/
53 BNûFROMû)0/S ûLEDûBYûhMODERNvûCARD
SCULLEY’S ZETA BRINGS NYSE IPO
ISSUINGûPLATFORMû-ARQETA@Sû53 BNû Morgan Stanley, Goldman Sachs, JP Morgan,
.ASDAQûOFFERINGûANDûMENTALûHEALTHûPROVIDERû Jefferies, TPG Capital, UBS and William Blair on ZETA GLOBAL, a customer intelligence and
,IFE3TANCEû(EALTH@Sû53 Mû.ASDAQû Tuesday launched the sale of 40m shares in MARKETINGûAUTOMATIONûSOFTWAREûlRMûWHOSEû
OFFERING the mental healthcare provider, including co-founder is former APPLE #%/û*OHNû3CULLEY û
MûBYûSELLINGûSHAREHOLDERS ûATû53 n û EXPECTSûTOûPRICEûANûUPûTOû53 Mû.93%û
)NûADDITION ûCOMPANIESûTHATûCOULDûLAUNCHû FORûPRICINGûPOST
CLOSEûONû*UNEû )0/ûPOST
CLOSEûONû7EDNESDAYû*UNEû
)0/SûNEXTûWEEKûINCLUDEû)SRAEL
BASEDûDIGITALû
ADOPTIONûSOFTWAREûlRMû7ALK-E û Alongside the offering, Lifestance is 4HEûOFFERINGûWILLûSEEû:ETAûSELLû Mû
WATERWORKSûANDûlREûPROTECTIONûDISTRIBUTORû ESTABLISHINGûAûNON
PROlTûFOUNDATIONûTOûFOCUSû primary shares and insiders the balance of
#OREû û-AIN ûHEALTHCAREûNETWORKSû#ONVEYû on mental health in youths and minority MûSHARES ûAûCOMBINEDû ûOFû
ANDû"RIGHTû(EALTH ûANDû#HINESEûFREIGHT
AS
A
COMMUNITIES û)TûISûFUNDINGûTHEûFOUNDATIONû OUTSTANDING ûATû53 n
SERVICEûPLATFORMû&OR5û7ORLDWIDE WITHû53 MûCASHûANDû ûSHARES ûWORTHû
53 MûIFûTHEû)0/ûPRICESûATûTHEûMIDPOINT US EQUITIES
Meanwhile, companies continue to line BOOKRUNNERS: 1/1/2021 TO DATE
up for what bankers are expecting to be a Lifestance provides mental health services
very busy June and July for the new issue through a network of 3,300 psychiatrists in Managing No of Total Share
MARKET ûCITIESûACROSSû û53ûSTATESûONûBOTHûANûIN
bank or group issues US$(m) (%)
patient basis at owned facilities and
#YBERSECURITYûlRMûSENTINELONE, digital ad VIRTUALLY û7ITHûAûGROWINGûNEEDûCOMINGûOUTû 1 Goldman Sachs 118 19,782.98 14.7
VERIlCATIONûlRMûINTEGRAL AD SCIENCE and 3-D of Covid-19, the company plans to expand
printer XOMETRYûALLûJOINEDûTHEûPIPELINEûWITHû INTOû ûCITIESûINûTHEûNEARûTERM 2 JP Morgan 118 19,564.78 14.5
PUBLICû)0/ûlLINGS
!SûTHEûlLINGûPOINTSûOUT ûhEXISTINGûTRENDSû 3 Morgan Stanley 104 18,280.70 13.6
4HEûPASTûWEEK Sû%#-ûACTIVITYûWASû in mental healthcare have worsened
somewhat overshadowed by renewed dramatically since the beginning of the 4 Bank of America 103 14,038.45 10.4
VOLATILITYûINûSO
CALLEDûhMEMEûSTOCKSv pandemic – 41% of adults reported at least
one adverse mental health condition, 5 Barclays 63 6,836.66 5.1
The most prominent of them, cinema including symptoms of mental illness or
chain AMC Entertainment, took advantage SUBSTANCEûABUSEûRELATEDûTOûTHEûPANDEMIC û 6 Citigroup 50 6,724.73 5.0

7 Credit Suisse 50 5,101.32 3.8

8 Jefferies 54 4,164.64 3.1

9 RBC 30 3,238.46 2.4

10 Wells Fargo 27 2,337.96 1.7

Total 511 134,867.25

Including all domestic and international deals and rights issues

Source: Refinitiv SDC code: C3r

82 International Financing Review June 5 2021

EQUITIES AMERICAS

Morgan Stanley, Bank of America, Credit Suisse EXPENSIVEûITEMSûONûTHEûSITEûnûITSûlLINGûCITESû probably more after taking into account
and Barclays AREûACTINGûASûJOINTûBOOKRUNNERS !MAZON ûE"AY û%TSY û2ESTORATIONû(ARDWAREûANDû LEVERAGE
7AYFAIR ûANDûAUCTIONûHOUSESû#HRISTIE SûANDû
The terms attribute the company a 3OTHEBY SûAMONGûITSûCOMPETITORS "LACKSTONEûBOUGHTûCONTROLûOFû4ASK5SûINû
MARKETûCAPITALISATIONûOFûUPûTOû53 BNû /CTOBERû ûINûAûDEALûTHATûVALUEDûTHEû
VERSUSûITSû ûREVENUEûOFû53 M )NûTHEûlRSTûQUARTERûOFû ûTHEûCOMPANYû DIGITALûOUTSOURCINGûlRMûATû53 M û4HEû
GREWûITSûGROSSûMERCHANDISEûVALUEûBYû ûTOû )0/ûTARGETSûAûVALUATIONûOFûMOREûTHANû
)NûTHEûlRSTûQUARTERûOFû û:ETAûGREWû 53 MûANDûMADEûAûNETûLOSSûOFû53 M 53 BN
REVENUEû ûTOû53 MûBUTûMADEûAûNETû
LOSSûOFû53 M ST$IBS ûMAJORûSHAREHOLDERûISû"ENCHMARKû 3TILL û"LACKSTONEûHASûHADûTOûWAITûAûLITTLEû
#APITAL ûWHICHûWILLûHOLDû ûOFûTHEû longer than planned since TaskUs was
4HEûlRMûOFFERSûAûDATA
DRIVENûCLOUDû COMPANYûPOST
)0/ ORIGINALLYûTEEDûUPûASû-AYûBUSINESS
platform that provides enterprises with
consumer intelligence and marketing The launch seemed well-timed with news !û
lRMûSYNDICATEûLEDûBYûGoldman Sachs
automation software, helping them to target THATû%TSYûWASûBUYINGûhUNIQUEûFASHIONvû and JP MorganûNOWûEXPECTSûTOûPRICEûAû.ASDAQû
consumers through personalised marketing MARKETPLACEû$EPOPûFORû53 BN û ûTIMESû OFFERINGûOFû Mû4ASK5SûSHARESûATû53 n
across email, social media, web, chat, LASTûYEAR Sû'-6ûOFû53 M ûPOST
CLOSEûONû4HURSDAYû*UNEû
CONNECTEDû46ûANDûVIDEO
!TûTHEûTOPûOFûTHEûRANGE ûTHEû)0/ûTERMSû 4ASK5SûISûSELLINGû MûPRIMARYûSHARES û
1STDIBS LAUNCHES US$120.8m attribute 1stDibs an enterprise value of WHILEû
SOMETHINGûFOUNDERSû"RYCEû
NASDAQ IPO NEARLYû53 MûORûAûMULTIPLEûTOûLASTûYEAR Sû Maddock and Jaspar Weir, as well as
'-6ûOFûNEARLYû X "LACKSTONE ûAREûOFmOADINGûTHEûBALANCEûOFû
1STDIBSûISûSEEKINGûTOûRAISEûUPûTOû53 Mû MûSHARES
FROMûAû.ASDAQûOFFERINGûOFû MûPRIMARYû TASKUS IPO IS SWEET TAKE FOR
SHARESûATû53 n BLACKSTONE "LACKSTONEûWILLûSTILLûOWNûTWO
THIRDSûOFûTHEû
COMPANYûPOST
)0/
Bank of America, Barclays, Allen & Co and 3TEVEû3CHWARZMAN Sû"LACKSTONEûAGAINûLOOKSû
EvercoreûLEADûAûSEVEN
lRMûUNDERWRITINGû poised to mark-to-market and partially TaskUs has hitched its growth to the rise and
syndicate that expects to price the offering crystallise a massive gain on a growth RISEûOFûTHEûDIGITALûDISRUPTOR UNICORNûAND ûUNLIKEû
ONû7EDNESDAY investment it has held for a relatively short MANYûOFûITSûCLIENTS ûITûISûQUITEûPROlTABLE
TIME ûTHISûTIMEûVIAûNEXTûWEEK SûUPûTOû
Founded in 2000 with a vision to bring 53 Mû.ASDAQû)0/ûOFûDIGITALûOUTSOURCERû 4HEûCOMPANYûHIGHLIGHTSû:OOMû6IDEOû
THEû0ARISûmEAûMARKETûONLINE û ST$IBS û TASKUS Communications, Uber Technologies,
e-commerce marketplace has 4,200 seller .ETmIX û/SCARû(EALTHûANDû#OINBASEû'LOBALûASû
ACCOUNTSûLOCATEDûACROSSû ûCOUNTRIESûANDû û (AVINGûALREADYûDELIVEREDûANûASTOUNDINGû customers that use its digital customer
MILLIONûUSERS û RETURNûONûCAPITALûFROMû&EBRUARY Sû)0/ûOFû experience, content security (moderating
DATINGûAPPûCOMPANYû"UMBLEûANDûLASTû HARMFULûCONTENT ûANDû!)ûSERVICESûTOûSOLVEûTHEû
The site brings together buyers and sellers of MONTH SûDEBUTûOFû3WEDISHûOATûMILKûMAKERû operational challenges associated with their
VINTAGE ûANTIQUE ûANDûCONTEMPORARYûFURNITURE û /ATLY û4ASK53 Sû)0/ûTERMSûIMPLYûTHATû RAPIDûGROWTH
HOMEûDECOR ûJEWELLERY ûWATCHES ûARTûANDû "LACKSTONE SûLESSûTHANûTHREE
YEARûINVESTMENTû
FASHION û!LTHOUGHûTHISûGIVESû ST$IBSûSOMETHINGû in TaskUs has risen at least 400% and Facebook and DoorDash are the
of a niche focus – there are some very COMPANY SûTWOûBIGGESTûCLIENTS ûTHEûFORMERû
accounting for more than one-third of
REVENUEûLASTûYEAR

ECM DEALS: WEEK ENDING 4/6/2021

Stock Country Date Amount Price Deal type Bookrunner(s)
01/06/2021 US$500.0m US$69.78
Nuvei Corporation Canada 02/06/2021 US$100.0m US$5.50 Accelerated bookbuild (Secondary) GS, CS, Scotia Capital, National Bank Financial
03/06/2021 HK$942.5m HK$14.50
Westport Fuel Systems Canada 02/06/2021 HK$2.65bn HK$9.80 Follow-on (Primary) RBC CM, JP Morgan
01/06/2021 HK$2.34bn HK$4.15
C&D International Investment China 03/06/2021 HK$2.405 Follow-on (Primary) China Industrial Securities International
01/06/2021 HK$661m €45.35
Evergrande Property Services China €508m Follow-on (Secondary) CMB International, Huatai Securities, UBS
01/06/2021 €41
MMG China 03/06/2021 €398m US$40 Follow-on (Primary) CLSA, Credit Suisse
03/06/2021 US$279.0m €4.90
Razer China 31/05/2021 M$2.79 Follow-on (Secondary) Goldman Sachs
03/06/2021 €82m NKr98.60
Alstom France 02/06/2021 M$237m US$37 Accelerated Bookbuild (Secondary) BNP Paribas, JP Morgan, BofA, Credit Agricole,
03/06/2021 SKr36.50
03/06/2021 NKr1bn SKr34 SG, Rothschild, Perella Weinberg advised
01/06/2021 US$166.5m 95p
Auto1 Group Germany Accelerated Bookbuild (Secondary) BNP Paribas, Citigroup, Deutsche Bank, GS
ZIM Integrated Shipping Services Israel 02/06/2021 SKr572m US$18.75
The Italian Sea Group Italy 02/06/2021 SKr505m US$21 Follow-on (Primary) Citigroup, Goldman Sachs, Barclays
Malayan Cement Malaysia
Atlantic Sapphire Norway 02/06/2021 £98m US$48 IPO (Primary & Secondary) Berenberg, Intermonte SIM
HeadHunter Russia 03/06/2021 US$45.50
MilDef Group Sweden US$187.5m Follow-on (Primary) Maybank
Permascand Sweden 02/06/2021 US$617.6m US$82
Brickability Group UK Accelerated Bookbuild (Primary) Arctic Securities, BofA, DNB Markets
US$96.0m
US$200.2m Follow-on (Secondary) Goldman Sachs, Morgan Stanley

US$889.8m IPO (Primary & Secondary) SEB

IPO (Primary & Secondary) ABG Sundal Collier, Carnegie

Accelerated Bookbuild Cenkos

(Primary & Secondary)

Cushman & Wakefield UK Accelerated bookbuild (Secondary) Goldman Sachs
dLocal Uruguay
IPO (Primary, Secondary) JP Morgan, GS, Citigroup, Morgan Stanley, BofA,

HSBC, UBS

Cambium Networks US Follow-on (Secondary) JP Morgan, Jefferies, Raymond James
Enviva Partners US
Accelerated bookbuild (Primary) Goldman Sachs, JP Morgan, Barclays, BMO CM,

Citigroup, HSBC, RBC CM

Syneos Health US Accelerated bookbuild (Secondary) BofA

International Financing Review June 5 2021 83

Enviva raises ESG credentials with
M&A funding

„ US Wood pellet maker gains feedstock for utilities

ENVIVA PARTNERS landed US$200m from a stock sale Enviva was able to upsize the offering to 4.4m sale, adding to its current 12% Enviva stake.
overnight on Thursday to fund several acquisitions units priced at US$45.50, the mid-point of the John Bumgarner, a former executive at
announced at the same time as the deal launch. range marketed. Williams Companies, also participated for an
undisclosed amount.
Enviva is one of the few remaining master Dedicated MLP funds, long-only
limited partnerships and the only one focused environmental, social and governance investors Ubben and Bumgarner sit on Enviva’s board.
on wood chips as an alternative to coal to feed and energy specialists are all part of the mix. The MLP expects the acquisitions to be
power plants, making it is less of a surprise immediately accretive. Alongside the deal
the financing and related acquisitions were This was not a simple task given tax launch, the MLP expects to distribute US$3.30
marketed confidentially. complexities associated with MLP distributions per unit to shareholders in 2021 and US$3.62
limit the investible universe and the fact there in 2022, compared with the current US$3.14
Goldman Sachs, JP Morgan, Barclays, BMO are not a lot of MLPs left. Most have long since payout.
Capital Markets, Citigroup, HSBC and RBC Capital converted to a traditional tax-paying C-Corp. Enviva is acquiring a wood pellet plant in
Markets launched public marketing on 4m units Mississippi, a related shipping terminal and
at US$45–$46, a discount of as much as 6.4% to Enviva, which went public in 2015 and has not take-or-pay supply agreements with three
the US$48.10 last sale on Thursday. sold stock since, is using proceeds to help fund Japanese utilities. As part of the agreement,
the US$345m purchase of three assets from its its general partner is waiving fees until the end
“We saw a significant amount of demand general partner. The MLP expects to fund the of 2023 to derisk the acquisition and provide
generated because of the visible growth and other half of the purchase with new debt. certainty of cashflows.
sustainable nature of their business,” one banker Stephen Lacey
involved in the offering told IFR. “It has done a Inclusive Capital Partners, the ESG
good job cultivating a following in recent years.” hedge fund co-founded by Jeffrey Ubben,
committed to invest US$40m on the stock

Facebook is not highlighted as a case "LACKSTONEûTHATûWILLûSUPPORTûTHESEûEFFORTSû GROWTHûINûRECURRINGûREVENUE ûSTOODûATû û
study or even mentioned in the roadshow, and a senior management team with deep INûTHEûlRSTûQUARTER
though TaskUs management notes in the ACQUISITIONûANDûINTEGRATIONûEXPERIENCE v
presentation that it works for three of the GOOGLE-BACKED VERVE PREPS FOR IPO
TOPûFOURûSOCIALûMEDIAûSITESûINûTHEû53 CONFLUENT EYES NASDAQ IPO
VERVE THERAPEUTICS ûAû'OOGLEû6ENTURES

)NûTHEûlRSTûQUARTERûOFû û4ASK5SûGREWû CONFLUENTûlLEDûONû&RIDAYû-AYû ûFORûAû BACKEDûGENEûEDITINGûSPECIALIST ûlLEDûFORûAû
REVENUEû ûTOû53 MûANDûDELIVEREDû .ASDAQû)0/ûTHATûCOULDûRAISEûANûESTIMATEDû 53 Mû.ASDAQû)0/ûONû-AYû ûTHATû
53 MûOFûADJUSTEDû%BITDA ûORûAû û US$500m, positioning it to become the would provide funds for a potential one-
ADJUSTEDû%BITDAûMARGIN LATESTûDATAûMANAGEMENTûSOFTWAREûlRMûTOûGOû time cure for a genetic cause of heart
PUBLIC DISEASE
4ASK5SûISûALSOûQUICKLYûEXPANDINGûITSû
WORKFORCE Morgan Stanley, JP Morgan, Goldman Sachs, JP Morgan, Jefferies, Guggenheim Securities
Bank of America and Citigroup are named as and William BlairûAREûJOINTûBOOKS
!TûTHEûENDûOFûTHEûlRSTûQUARTER û4ASK5SûHADû JOINTûBOOKRUNNERS
ûEMPLOYEESûAROUNDûTHEûWORLD ûORû 6ERVEûWASûFORMEDûINû ûBYû$Rû3EKARû
DOUBLEûTHEûNUMBERûWHENû"LACKSTONEûlRSTû #ONmUENT ûWHOSEûTECHNOLOGYûWASû +ATHIRESAN ûAûFORMERûDIRECTORûOFû4HEû"ROADû
INVESTED û4HISûINCLUDESûTHOSEûSTATIONEDûINû originally created inside professional )NSTITUTEûATû-)4ûWHOûIDENTIlEDûGENESû
large “shared services” operations in the NETWORKINGûSITEû,INKED)NûINû ûRAISEDû produced in the liver that can trigger an
0HILIPPINESûANDû)NDIA ûTHEûFORMERû 53 MûFROMûAû3ERIESû%ûPRIVATEûROUNDûLASTû excess production of bad cholesterol,
responsible for more than half of its revenue YEAR û)TûEXTENDEDûTHATûROUNDûTOûENABLEû LEADINGûTOûHEARTûDISEASE
FROMûWORKûPERFORMED founders and other top management to cash
OUTûROUGHLYû53 M (AVINGûIDENTIlEDûTHEûPROBLEM û+ATHIRESANû
A big focus of TaskUs is its ability to TURNEDûTOû"EAMû4HERAPEUTICSûFORûAûSOLUTION û
QUICKLYûHIREûANDûTRAINûSTAFFûTOûSERVEûFAST
The company is well capitalised with cash 6ERVEûLICENSEDûUSEûOFû"EAM SûBASEûEDITINGû
GROWINGûCLIENTS ûASûITûDIDûFORû:OOMûWHENûITSû OFû53 MûASûOFû-ARCHû platform to develop a one-time treatment
BUSINESSûEXPLODEDûDURINGû#OVID for patients that are genetically predisposed
#ONmUENT ûWHOSEûCLOUD
BASEDûSOFTWAREû TOûHIGHûCHOLESTEROL
According to the roadshow, TaskUs is helps analyse data across everything from
independently rated a better place to work lNANCIALûTRANSACTIONSûANDûSUPPLYûCHAINû 6ERVEûISSUEDû MûSHARESûTOû"EAMûINû
THANûPEERSûSUCHûASû'LOBANT û%0!- û!PPEN û management to personalised return for rights to use its proprietary gene-
4ELUSûANDû'ENPACT recommendations on music, grew EDITINGûTECHNIQUE û4HEIRûCOLLABORATIONûHASû
lRST
QUARTERûREVENUEûBYû ûTOû53 M û resulted in two potential treatments for
Maddock said in the roadshow INCLUDINGû53 MûFROMûSUBSCRIPTIONS HEARTûDISEASE
presentation that winning over Fortune 500
clients that are undergoing digital 4HEûCOMPANY ûWHICHûCOUNTSû3NOWmAKEû 4HEûBIOTECHûFOUNDûSTEADYûlNANCIALû
TRANSFORMATIONûASûWELLûASû- !ûFORMEDûPARTû ANDû%LASTICûASûPARTNERS ûHASû ûCUSTOMERSû SUPPORTûFROMû'OOGLEû6ENTURES ûAû
OFû4ASK5S SûGROWTHûPLANS with annual recurring revenue greater than PARTICIPANTûINûEACHûOFû6ERVE SûPRIVATEû
53 MûANDû ûGREATERûTHANû53 û)TSû funding rounds since its inception that
“We are well-positioned to accelerate our dollar-based net retention rate, a measure of GIVEûITûAû ûSTAKE
GROWTHûTHROUGHûTHOUGHTFULûACQUISITIONS vûHEû
SAIDûINûTHEûROADSHOW ûh7EûHAVEûAûSPONSORûINû

84 International Financing Review June 5 2021

EQUITIES AMERICAS

The biotech had US$149m of cash as of After a day of marketing, JP Morgan, provider FIRST ADVANTAGEûPUBLICûJUSTû û
March 31, including US$94m it raised from a Jefferies and Raymond James late on months after buying the business for
3ERIESû"ûROUNDûINû*ANUARY Wednesday priced the all-secondary sale of 53 BN
2m Cambium shares at US$48 for proceeds
4HEû3ERIESû"ûROUNDûFOLLOWEDû6ERVE Sû OFû53 M /Nû-AYû û&IRSTû!DVANTAGEûlLEDûAû
PRESENTATIONûATûAû*0û-ORGANû(EALTHCAREû 53 MûPLACEHOLDERûFORûAû.ASDAQû)0/ûTHATû
Conference, where it unveiled data from 4HEûSTOCKûHADûPLUNGEDû ûINû COULDûPRICEûLATERûINû*UNE ûBarclays, Bank of
animal studies that showed a consistent 7EDNESDAY SûSESSIONûASûTHEYûPITCHEDû America and JP MorganûAREûLEADINGûAû
lRMû
lowering of cholesterol in non-human primates INVESTORSûANDûTUMBLEDûANOTHERû ûTHROUGHû UNDERWRITINGûSYNDICATE
SIXûMONTHSûAFTERûRECEIVINGûTHEûGENEûTHERAPY THEûISSUEûPRICEûTOû53 ûONû4HURSDAY
The offering will comprise a mix of
4HEû)0/ûPROCEEDSûWOULDûPROVIDEûAûBRIDGEû 4HEûSALEûCUTû6ECTOR SûSTAKEûTOû û4HEû PRIMARYûANDûSECONDARYûSHARES
FORû6ERVEûUNTILûITûCANûLAUNCHû0HASEû)ûCLINICALû lRMûHASûAGREEDûNOTûTOûSELLûANYûMOREûSTOCKû
trials for both of its drugs in human patients FORû ûDAYS First Advantage provides more than
BEGINNINGûNEXTûYEAR 30,000 customers with criminal background
The sale follows a remarkable surge in checks, drug and health screening,
LEONARD GREEN COMES CLEAN WITH #AMBIUMûSTOCKûFROMûUNDERû53 ûAûYEARûAGOû EDUCATIONûANDûWORKûVERIlCATIONS ûANDûSOCIALû
MISTER CAR WASH TOû53 ûJUSTûAHEADûOFûTHEûLATESTûOFFERING û MEDIAûMONITORINGûSERVICES
the stock having initially disappointed after
Sponsor-backed car wash operator MISTER CAR the company went public at US$12 in mid- 4HEûCOMPANYûGENERATEDû53 MûOFû
WASHûlLEDûONû7EDNESDAYûFORûANû.93%û)0/û ADJUSTEDû%BITDAûFROMûAû ûINCREASEûINû
THATûCOULDûRAISEû53 M REVENUEûTOû53 MûINûTHEûlRSTûQUARTERûOFû
6ECTORûSOLDû MûSHARESûATû53 ûPERû
Bank of America, Morgan Stanley, Goldman SHAREûINû$ECEMBER
Sachs and Jefferies, BMO Capital Markets and &IRSTû!DVANTAGEûGOESûINTOûTHEû)0/ûCARRYINGû
UBS AREûLISTEDûASûBOOKRUNNERS The latest offering comes after Cambium 53 MûOFûTOTALûDEBTûTHOUGHûTHEû)0/û
INûEARLYû-AYûREPORTEDûRECORDûlRST
QUARTERû proceeds will be used for general corporate
The offering would comprise a mix of revenue and earnings amid robust demand PURPOSES ûNOTûNECESSARILYûTOûPAYûBACKûDEBT
PRIMARYûANDûSECONDARYûSHARES FORûWIRELESSûBROADBANDûCONNECTIVITY û)Tû
expects 24%–29% growth in full-year 4HEûCOMPANYûlRSTûlLEDûCONlDENTIALLYûONû
0RIVATEûEQUITYûlRMû,EONARDû'REENû û REVENUEûTOû53 Mn M !PRILû
0ARTNERSûACQUIREDûTHEûINITIALûBUSINESSûINû
2014 and appears likely to cut its stake as KRISPY KREME HEADS BACK TO PUBLIC SYNEOS SPONSORS MAKE FINAL EXIT
PARTûOFûTHEûOFFERING MARKETS
)NûTHEûLASTûINûAûSERIESûOFûRAPID
lREûSELL

Mister Car Wash operates 344 car washes KRISPY KREMEûlLEDûONû*UNEû ûFORûANûUPCOMINGû DOWNS û4HOMASû(û,EEû0ARTNERSûANDû
in 21 states, mainly under a subscription .ASDAQû)0/ûTHATûWILLûSEEû$UTCH
BASEDû !DVENTû)NTERNATIONALûDISPOSEDûOFûTHEIRû
MODELûTHATûCHARGESûCUSTOMERSûAûmATû CONTROLLINGûSHAREHOLDERû*!"ûCUTûITSûSTAKEûlVEû remaining holdings in SYNEOS HEALTH
monthly fee for unlimited service and years after taking the doughnut brand THROUGHûAû53 MûBLOCKûSALEûONû
PROVIDESûAûHIGHûLEVELûOFûREVENUEûVISIBILITY PRIVATE 7EDNESDAY

Last year, members cleaned their cars an JP Morgan, Morgan Stanley, Bank of America Bank of AmericaûOFmOADEDûITSûPURCHASEûOFû
average of more than 30 times, accounting and Citigroup LEADûAû
lRMûSYNDICATEûBEHINDû MûSHARES ûAû ûSTAKEûINûTHEûCONTRACTû
FORû ûOFûSALESûANDû ûOFûVOLUME û THEûSALEûOFûPRIMARYûANDûSECONDARYûSHARES research organisation, at US$82, the low end
-EMBERSHIPûSTOODûATû MûASûOFû-ARCHû of the US$82–$84 range marketed overnight
*!" ûTHEûINVESTMENTûARMûOFûTHEûBILLIONAIREû ANDûAû ûDISCOUNTûTOûTHEû53 û
There are no other car-wash operators of 2EIMANNûFAMILY ûISûRETURNINGû+RISPYû+REMEû 7EDNESDAYûCLOSE
SCALEûTHATûAREûPUBLIC to public markets after taking it private for
53 BNûINû û 3YNEOSûCLOSEDû4HURSDAY SûSESSIONûATû
)NûTHEûlRSTûQUARTER ûTHEûCOMPANYûCHURNEDû 53
OUTû53 MûOFûADJUSTEDû%BITDAûAFTERû An operator of doughnut shops with a
GROWINGûREVENUEû ûTOû53 M û growing e-commerce business and more )NûCONJUNCTIONûWITHûTHEûPUBLICûOFFERING û
INCLUDINGû ûCOMP
STOREûSALESûGROWTH than 8,000 “global points of access”, Krispy Syneos bought back 500,000 shares from
+REMEûCARRIESû53 BNûOFûTOTALûDEBTûBUTû THEIRûFORMERûSPONSORS û.OTABLY û"OF!ûDIDûNOTû
The company plans to use primary WILLûUSEûSOMEû)0/ûPROCEEDSûTOûPAYûBACKû HAVEûAûGREENSHOEûTOûHELPûSTABILISEûTRADING
proceeds to repay a US$225m second-lien SOMEûOFûTHISûAMOUNT
term loan in its entirety and a portion of the 4HOMASû(û,EEûANDû!DVENTûHADûCUTûTHEIRû
53 MûOUTSTANDINGûONûAûlRST
LIENûTERMû )NûTHEûQUARTERûENDEDû!PRILû û+RISPYû STAKESûTOû ûANDû ûASûRECENTLYûASû-AYû û
LOAN û.ETûLEVERAGEûSTANDSûATûlVEûTIMESû%BITDAû +REMEûGREWûREVENUEû ûTOû53 M û VIAûAûBLOCKûSALEûOFû MûSHARESûATû53 û
FORûTHEûTRAILINGû ûMONTHSûENDEDû-ARCH GENERATEDû53 MûOFûADJUSTEDû%BITDAûANDû BofAûALSOûHANDLEDûTHATûTRADE û4HEû-AYûSELL

MADEûAûSMALLûNETûLOSSûOFû53 down was preceded by a similarly sized
Mister Clean paid shareholders a BLOCKûINû-ARCHûATû53 ûPERûSHAREûVIAû
53 MûDIVIDENDûINû *!"ûHASûOBVIOUSLYûSCALEDûBACKûTHEû Goldman Sachs
BUSINESSûINûTHEûPASTûlVEûYEARS û+RISPYû+REMEû
(AVINGûSLOWEDûITSûGROWTHûDURINGûTHEû GENERATEDû53 MûOFûREVENUEûANDûNETû Across those trades, Syneos repurchased a
PANDEMIC ûTHEûCOMPANYûPLANSûTOûOPENû ûTOû INCOMEûOFû53 MûINûlSCALû ûTHEûLASTû TOTALûOFû MûSHARES ûHELPINGû4HOMASû(û,EEû
ûNEWûCARûWASHESûTHISûYEAR û)TûWILLûALSOû FULLûYEARûBEFOREûITûWENTûPRIVATE ANDû!DVENTûTOûCASHûOUTûAûHEFTYû53 BN
SELECTIVELYûTARGETûACQUISITIONS
+RISPYû+REME ûWHICHûlRSTûlLEDû A full exit has taken a while considering
VECTOR CUTS CAMBIUM STAKE AGAIN CONlDENTIALLYûONû!PRILû ûEXPECTSûTOûPAYû THEûSPONSORS ûHOLDINGSûDATEûBACKûTOûTHEIRû
QUARTERLYûDIVIDENDS EQUALûSTAKESûINû)N6ENTIVûBEFOREûITûMERGEDû
4ECH
FOCUSEDûPRIVATEûEQUITYûlRMû6ECTORû WITHû).#û2ESEARCHûTOûCREATEû3YNEOSûINû
#APITALûWASûFORCEDûTOûACCEPTûAûSTEEPû û FIRST ADVANTAGE FILES FOR JUNE IPO
lLE
TO
OFFERûDISCOUNTûTOûSELLûAû ûSTAKEû SPRINKLR TURNS ON IPO PLANS
in CAMBIUM NETWORKS, the former 4ECH
FOCUSEDûPRIVATEûEQUITYûlRMû3ILVERû,AKEû
networking infrastructure unit of HASûlLEDûTOûTAKEûBACKGROUND
CHECKSû SPRINKLR, an enterprise software company on
-OTOROLAû3OLUTIONS track to generate more than US$400m of

International Financing Review June 5 2021 85

Palihapitiya files four biotech IPOs

„ SPAC Veteran shifts focus amid market exodus

In an otherwise slow week for SPACs, Chamath prohibit a large holder from voting against a RA Capital and eCor1 Capital are among
Palihapitiya injected some life into the flagging merger. the biotech-focused VCs that have sponsored
product by revealing plans for four new SPACs, biotech SPACs this year.
all identical in structure and size, and all focused The “anti-blocker” provision is designed to
on biotech. “limit the ability of a small group of shareholders “If you look at the roughly 30-odd biotech-
to unreasonably attempt to block our ability focused SPACs we’ve seen, it’s no coincidence
Morgan Stanley is sole books on all four. They to complete our initial business combination”, that many are sponsored by those same investors
are jointly sponsored by Palihapitiya’s Social Palihapitiya and Mehta outline in the prospectus. that lead crossover rounds and provide the third-
Capital and Kishen Mehta, portfolio manager party validation that broader public investors are
of the Averill life sciences strategy at Suvretta Palihapitiya and Mehta also agreed to a looking for,” said RBC Capital Markets head of
Capital Management. one-year lock-up on their founder shares post- healthcare ECM Jason Levitz in a blog in March.
merger, though they would be free to sell 150
Aside from the inclusion of one days after a merger if the stock trades above “So, as you think about the traditional
independent director, the SPACs are identical US$12 for 20 of 30 trading days. crossover to IPO path versus the SPAC path, one
in all regards. consideration obviously is the sponsor you’re
The other three funds are all similarly working with in the SPAC.”
The four filings come in a week that saw no structured, aside from a distinct independent
new US SPAC listings for the first time since mid- director on each of the SPAC boards. In this case, Palihapitiya would seem to be the
April. bag man and Mehta a man of science.
Palihapitiya obviously has no problem
SOCIAL CAPITAL SUVRETTA HOLDINGS I is seeking drawing a crowd, despite being criticised earlier Adding credibility are Social Capital Suvretta
to raise US$200m from the sale of common this year for selling his personal stake in Virgin I independent director Vladimir Coric, the CEO
stock and has a 24-month investment horizon Galactic, the result of his first SPAC, and for of Biohaven Pharmaceuticals; eGenesis CFO
with an extension period subject to shareholder Clover Health’s woes. Clover trades at US$8.86. Sapna Srivastava, the independent director on II,
approval, as standard. Renovacor chief medical officer Marc Semigran
Focusing on life sciences/biotech, while not on III; and Arena Pharmaceuticals CEO Amit
In a slight twist, Social Capital Suvretta I caps unique, is a logical extension for Palihapitiya, Munshi on IV.
individual shareholder ownership at 15% to be given he already has money elsewhere and Stephen Lacey
eligible for redemption, though that would not abundance of SPAC capital everywhere.

revenue this year, is pushing ahead with a TPG TOP-TICKS CUSHMAN & WAKEFIELD Selling at near annual highs – the stock
.93%û)0/ûTHATûCOULDûPRICEûASûEARLYûASûTHEû TICKEDûAû53 ûHIGHûAûWEEKûEARLIERûnû
SECONDûHALFûOFû*UNE 40'ûCONTINUEDûSELLINGûDOWNûITSûSTAKEûINû MAKESûSENSE
CUSHMAN & WAKEFIELD ûTHEû.93%
LISTEDû
The provider of customer experience COMMERCIALûREALûESTATEûBROKERûITûACQUIREDûINû 4HEûLASTûTIMEû40'ûSOLD ûALSOûTHROUGHûAû
MANAGEMENTûSOFTWAREûlLEDûAû53 Mû ûANDûTOOKûPUBLICûINû block sale, WASûINû.OVEMBERû ûWHENûITû
placeholder for an all-primary offering on OFmOADEDû MûSHARESûATû53 ûNEARûTHEû
&RIDAY û-AYû )NûJUSTûITSûTHIRDûEQUITYûSALEûSINCEûTHEû)0/ û HIGHSûFORûTHATûYEAR û)Nû-ARCHû ûITûSOLDûASû
40'ûLEDûAûCONSORTIUMûOFûSELLERSûTHATûCASHEDû PARTûOFûAûMARKETEDûSECONDARYûOFFERINGû Mû
Morgan Stanley, JP Morgan, Citigroup, INû53 MûFROMûTHEûCOMBINEDûBLOCKû SHARESûATû53
Barclays and Wells Fargo are named as lead SALEûOFû MûSHARES ûCUTTINGûTHEûlRM SûSTAKEû
BOOKRUNNERSûATOPûAû
lRMûSYNDICATE TOû ûFROMû û0!'û!SIAû#APITALûANDû CANADA
/NTARIOû4EACHERS ûTHEûOTHERûSELLERS û
Sprinklr raised U$200m of capital from REDUCEDûTHEIRûSTAKESûTOû ûANDû û LMPG TURNS LIGHTS ON C$300m TSX IPO
PRIVATEûEQUITYûlRMû(ELLMANû û&RIEDMANûATûAû RESPECTIVELY
53 BNûVALUATIONûINû3EPTEMBER û!TûTHEûSAMEû Quebec-based commercial LED lighting maker
TIME û( &ûPURCHASEDû53 MûOFûSHARESûFROMû Goldman SachsûHADûSOUGHTûTOûOFmOADûTHEû LMPG on Monday launched a C$300m (US$250m)
existing investors, while Sprinklr secured PURCHASE ûEQUATINGûTOû ûDAYS ûTRADINGû 438û)0/ ûTHEûLATESTûINûANûUNCHARACTERISTICALLYû
another US$150m from the sale of convertible VOLUME ûATû53 n ûANûUPûTOû û robust recent run of new listings north of the
SECURITIESûTOû3IXTHû3TREETû'ROWTH DISCOUNTûTOûTHEû53 ûLASTûSALEûONû BORDERûANDûMARKSûTHEûCOMPANY SûRETURNûAFTERû
7EDNESDAY û4HEûBANKûINDICATEDûITûDIDûSOûATû lVEûYEARSûINûPRIVATEûHANDS
!CCORDINGûTOûTHEûlLING û( &ûNOWûOWNSû 5 ûTHOUGHûITûISûQUESTIONABLEûHOWû
ûOFûTHEûCOMPANY ûWHILEû4HOMASûOWNSû SUCCESSFULûITûWASûINûTHATûEFFORT ,-0'ûISûSEEKINGûTOûRAISEû# MûFROMûTHEû
sale of treasury shares, while selling
#USHMANû û7AKElELDûCLOSEDû4HURSDAY Sû SHAREHOLDERSûLEDûBYû#ANADIANûPRIVATEûEQUITYû
3PRINKLR SûARTIlCIALûINTELLIGENCEûPLATFORMû SESSIONûATû53 ûIMPLYINGûAûROUGHLYû lRMû0OWERû%NERGYûAREûOFmOADINGû# MûOFû
helps companies conduct market research, 53 MûPAPERûLOSSûFORûBUYERS STOCK
handle customer service issues, plan
MARKETINGûCAMPAIGNSûANDûANALYSEûDATA The company has rallied 30% this 0OWERû%NERGYûHELPEDû,-0'û#%/û&RANCOIS

year amid improved leasing activity as Xavier Souvay take the company private for
3PRINKLR ûWHICHûHASû ûCUSTOMERSû THEûPANDEMICûWANES û(ELPEDûBYûANû # MûINû û(IGHLIGHTINGûTHEûVALUEûCREATEDû
including more than half of the Fortune 100, economic reopening, the real estate SINCEûTHEN ûTHEû)0/ûVALUESû,-0'ûATû# MûIFû
grew revenue 19% to US$111m and made a BROKERAGEûSAWûlRST
QUARTERû%BITDAûJUMPû THEûDEALûPRICESûINûTHEûMIDDLEûOFûTHEûRANGE
NETûLOSSûOFû53 MûINûITSûlSCALûlRSTû ûTOû53 M ûALTHOUGHûITSû
QUARTER û.EARLYû ûOFûTHEûlRM SûREVENUEû prospects still remain tempered by high Joint active bookrunners RBC Capital
was in the form of subscriptions, while gross LEVERAGEû ûTIMESûONûPANDEMIC
Markets and Scotia Capital are offering the
MARGINSûSTOODûATû ûINûTHEûSAMEûPERIOD AFFECTEDûNUMBERS

4HEûlRMûlRSTûlLEDûCONlDENTIALLYûWITHûTHEû
3%#ûONû-ARCHû

86 International Financing Review June 5 2021

EQUITIES AMERICAS

SHARESûATû# n ûEACHûFORûPRICINGûTHISû 7ESTPORTûSHARESûATû53 ûAûSTEEPû û Canadian dollar shares or US dollar-
WEEK lLE
TO
OFFERûDISCOUNT DENOMINATEDûUNITS û)TûHADûCONTEMPLATEDûAû
dual, US, TSX listing at the time but opted
A consortium of Canadian pension )NVESTORSûTHATûPARTICIPATEDûWEREûABLEûTOû AGAINSTûDOINGûSOûBECAUSEûOFûTAXûCOMPLEXITIES
plans is investing another C$250m via a PURCHASEûEITHERû7ESTPORT Sû.ASDAQûORû438û
concurrent private placement at the LISTEDûSHARES .UVEIûCLOSEDû7EDNESDAYûTRADINGûATû
OFFERINGûPRICE û0OWERû%NERGYûSTANDSûTOû 53 ûONûLIGHTûVOLUMEûOFû MûCOMBINEDû
collect C$225m from the placement, 7ESTPORT SûMOREûLIQUIDû.ASDAQ
LISTEDû SHARES
CUTTINGûITSû,-0'ûSTAKEûTOû ûFROMû SHARESûCLOSEDû4HURSDAYûTRADINGûATû53 û
ANDûITSû438ûSHARESûATû# The offering enabled Canadian private
EQUITYûlRMû.OVACAP ûANûEARLY
STAGEûBACKER û
h"ECAUSEû,-0'ûWASûPUBLICûBEFORE ûTHEREû Like other Canadian alt-energy TOûCUTûITSûSTAKEûTOû û.UVEIû#%/û0HILIPû
are a lot of Canadian institutional investors companies that have raised capital Fayer, a 20% holder, Caisse de depot et
that are familiar with the business,” said one RECENTLYû 0LUGû0OWER û&UELCELLû%NERGY ûTHEû PLACEMENTûDUû1UEBECû ûANDûOTHERû
BANKERûINVOLVEDûINûTHEûOFFERING û rush of capital into clean energy has members of management also took the
BROUGHTû7ESTPORT SûSTOCKûTOûLIFEûINûTHEû OPPORTUNITYûTOûREDUCEûTHEIRûHOLDINGS
)NûORDERûTOûWINûOVERûTHEûPENSIONûPLANS û PASTûYEARûORûSO
,-0'ûHASûPLEDGEDûNOTûTOûMOVEûITSûHEADû 4HEûSYNDICATEûMARKEDûAûPARTIALûRESHUFmEû
OFlCEûOUTûOFû1UEBECûFORûATûLEASTûTHEûNEXTû !SûPARTûOFûITSûlRST
QUARTERûEARNINGSûRELEASEû FROMûTHEû'OLDMAN û#REDITû3UISSE ûBMO
SEVENûYEARS last month, Westport unveiled plans to grow Capital Markets and RBC Capital Markets
revenues to US$1bn a year by the middle of LINE
UPûTHATûLEDûAûSECONDARYûOFû MûSHARESû
The private placement investors have THISûDECADE û)TûGENERATEDû53 MûOFû ATû53 ûINû-ARCH
agreed to a 120-day lock-up, shorter than the REVENUESûINûTHEûlRSTûQUARTER

DAYûRESTRICTIONûONûOTHERûINSIDERS URUGUAY
The bulk of that top-line growth is
0REVIOUSLYûKNOWNûASû,UMENPULSE û,-0'û expected to come from high pressure direct DLOCAL SURGES AFTER NASDAQ IPO
saw its revenue fall during the pandemic, INJECTIONû (0$) ûNATURALûGASûENGINES û PRICES ABOVE RANGE
ALTHOUGHûPROlTSûIMPROVED û,ASTûYEARûTHEû Westport has an agreement in place with
COMPANYûGREWûADJUSTEDû%BITDAû ûTOû 6OLVOûFORû(0$)ûENGINESûINûHEAVYûTRUCKSûANDû Shares of DLOCAL JUMPEDûMOREûTHANû ûONû
# MûDESPITEûAû ûDECLINEûINûREVENUEû SIGNEDûAûSEPARATEû*6ûWITHû#HINA Sû7EICHAIûINû ITSû.ASDAQûDEBUTûONû4HURSDAYûAFTERûTHEû
TOû# M THEûlRSTûQUARTERûTHATûCALLSûFORûAûMINIMUMû 5RUGUAY
BASEDûE
COMMERCEûPAYMENTSûlRMû
DELIVERYûOFû ûENGINESûTHROUGHûTOû DREWûHEAVYûDEMANDûFORûITSû53 Mû)0/
There is an environmental, social and
governance angle, given LED is longer- 7ESTPORT Sû.ORTHû!MERICANû*6ûWITHû With a successful playbook now well-
LASTINGûANDûMOREûEFlCIENTûTHANûTRADITIONALû Cummins is due to expire at the end of 2021, ESTABLISHEDûFORûPAYMENTSû)0/S ûD,OCAL Sû
LIGHTINGûSOURCES û,-0'ûHASûPROVIDEDûTHEû prompting it to explore strategic OFFERINGûOFû MûPRIMARYûANDûSECONDARYû
LIGHTINGûFORûCOMMERCIALûPROJECTSûRANGINGû ALTERNATIVES shares closed more than 15 times subscribed
from bridges to shopping malls and before a syndicate led by JP Morgan, Goldman
showrooms, and even landmarks such as )TûISûALSOûWORKINGûWITHû3WEDEN Sû3CANIAûTOû Sachs, Citigroup and Morgan Stanley priced the
THEû0ANTHEONûINû2OME develop a hydrogen-powered version of its SHARESûATû53 ûVERSUSûTHEû53 n ûRANGEû
(0$)ûENGINE LATEûONû7EDNESDAY
“There are a lot more Canadian
INSTITUTIONSûLOOKINGûFORû%3'ûANGLES vûSAIDûAû Westport, which previously sold 4HEûOFFERINGûCOMPRISEDû MûPRIMARYû
SECONDû#ANADIANû%#-ûBANKER ûh4HEYûAREûNOTû convertible debt and more recently raised shares and 25m from a group of selling
NECESSARILYû%3'
DEDICATEDûFUNDSûBUTû capital from at-the-market stock sales, plans shareholders that included co-founder
GENERALISTûFUNDSûTHATûAREûTAKINGûANû%3'ûVIEWû to use 25%–40% of the offering proceeds to !NDRESû"ZUROVSKIû"AYûANDûSPONSORû'ENERALû
TOûTHEIRûINVESTMENTûDECISIONS v FUNDûCAPEXûTOûAUTOMATEûPRODUCTIONûOFû(0$)û !TLANTIC
ENGINESûANDû n ûONû2 $
There is also room to grow through Allocations were naturally tight and
ACQUISITIONS NUVEI RETURNS WITH US$500m skewed towards long-only investors with a
SECONDARY SALE 53
CENTRICûBOOKûOFûDEMAND
,-0'ûPLANSûTOûUSEû)0/ûPROCEEDSûTOûFULLYû
repay borrowings on existing credit NUVEI helped facilitate a US$500m all- A banker close to the deal said a couple of
facilities and sign a new C$150m revolver secondary stock sale of its TSX-listed shares, European mutual funds and a handful of
THATûCANûBEûEXPANDEDûBYû# M û4HATû already the second sell-down in the "RAZILIANûINSTITUTIONSûWEREûALSOûATûORûNEARû
capacity will allow it to plug in to a #ANADIANûPAYMENTSûPROCESSOR SûSHARESûTHISû THEûTOPûOFûTHEûBOOK
DISCIPLINEDû- !ûSTRATEGYûBASEDûONûPRICEû YEAR
and ability to extract synergies within six /PENINGûAROUNDûMIDDAYûONû4HURSDAY û
TOû ûMONTHSûOFûCLOSING Goldman Sachs, Credit Suisse, Scotia Capital dLocal shares began trading at US$31 for an
and National Bank FinancialûACTEDûASûJOINTû IMMEDIATEû ûGAINûBEFOREûCLOSINGûATû
So far this year, 28 Canadian companies bookrunners on a bought deal basis for the 53 ûFORûAûDAY
ONEûRETURNûOFû
HAVEûRAISEDûAûCOMBINEDû53 BNûTHROUGHû SALEûOFû MûSHARESûATû53 ûAû û
438
LISTEDû)0/S ûALREADYûAPPROACHINGûTHEû DISCOUNTûTOû4UESDAY Sû53 ûCLOSINGû (EDGEûFUNDSûVALUEDûTHEûSTOCKûINûTHEûLOW
TO

53 BNûRAISEDûBYû ûCOMPANIESûINûALLûOFû PRICE mid 30s, whereas long-only names saw value
ûACCORDINGûTOû2ElNITIVûDATA AROUNDûTHEû53 n ûMARK ûTHEûBANKERûSAID
The banks were fully covered shortly after
WESTPORT FUELS GROWTH WITH the launch of the offering and built &IDELITY Sû ûORDERû DISCLOSEDûONûTHEû
US$100m SALE incremental demand on Wednesday COVERûOFûTHEûlLING ûWASûlLLEDûINûITSûENTIRETY û
MORNING KEEPINGûSTOCKûSCARCE û4HEûCORNERSTONEû
WESTPORT FUEL SYSTEMS, a Canadian maker of investment came about through pre-
natural gas-powered engines, secured “There was good institutional support,” MARKETINGûANDûASûAûRESULTûOFûREVERSEûENQUIRYû
US$100m from a marketed stock sale to SAIDûONEû#ANADIANûBANKER ûh4HISûWASûNOTûAû ONûTHEûPORTFOLIOûMANAGER SûPART
FUNDûCAPEXûANDû2 $ BOUGHTûDEALûTHATûDEPENDEDûONûRETAIL v
“There were a lot of institutions that were
After two days of marketing, RBC Capital .UVEIûWENTûPUBLICûONûTHEû438ûINû interested but [dLocal] chose to do
Markets and JP Morgan PRICEDû Mû 3EPTEMBERûVIAûTHEûSALEûOFû MûSUBORDINATEû
VOTINGûSHARESûATû53 ûAVAILABLEûINûEITHERû

International Financing Review June 5 2021 87

SOMETHINGûVERYûTARGETED vûTHEûBANKERûSAID û “[dLocal] provides customers one STRUCTURED EQUITY
“Fidelity brought a high level of engagement solution across emerging markets,” the
from a number of its portfolio managers BANKERûSAID CHINA
THATûWEREûSUPPORTIVEûOFûTHEûVALUATION v
4HEûCOMPANY SûPAYMENTSûTECHNOLOGYû MICROPORT SCIENTIFIC SEALS CB
!Tû4HURSDAY SûCLOSE ûD,OCALûCARRIEDûAûMARKETû enables 330 global merchants to get paid and
CAPûOFû53 BNûVERSUSûITSûREVENUEûOFû53 Mû MAKEûPAYMENTSûINû ûEMERGINGûMARKETS Chinese medical devices maker
LASTûYEAR û4HOUGHûAûLOFTYûVALUATIONûBYûMOSTû MICROPORT SCIENTIFICûHASûSEALEDûAûlVE
YEARû
MEASURES ûTHEûLATTERûGREWû ûYEAR
ON
YEARûANDû As part of a deal forged in early 2019, Amazon PUT
THREEûCONVERTIBLEûBONDûOFû53 M
TOP
LINEûGROWTHûHASûACCELERATEDûTOû ûINû1 HOLDSûWARRANTSûOVERû MûSHARESûWITHûANû
EXERCISEûPRICEûOFûJUSTû ûCENTS ûEQUATINGûTOû 4HEûZERO
COUPONû#"ûWASûMARKETEDûATûAû
/FûCOURSE ûINVESTORSûAREûWELL
VERSEDûINûTHEû ABOUTû ûOFûTHEûCOMPANYûIFûEXERCISED yield of 0%–1% and a conversion
consistent alpha-generation record of PREMIUMûOFû n û)TûWASûSOLDûATûAû û
PAYMENTSû)0/S ûNOTûJUSTûTHOSEûINûTHEû53û !MONGûPOSSIBLEûUSESûOFûTHEû)0/ûPROCEEDS û YIELDûANDûAû ûPREMIUM
SUCHûASû&LYWIREûANDû0AYMENTUSûLASTûWEEK û D,OCALûCOULDûSEEKûACQUISITIONS
but also several hot LatAm deals in recent The deal attracted strong demand from
YEARSû SUCHûASû3TONE#OûANDû0AG3EGUROû "ANKERSûNOTEûTHEREûAREûOTHERû"RAZILIANû investors with the books multiple times
$IGITAL lNTECHû)0/SûALREADYûMANDATEDûFORûLATERûTHISû SUBSCRIBED û)NVESTORSûLIKEDûTHEûMEDICALû
YEARû PARTICULARLYûAFTERû*ULYû technology player as it gave them a chance
“The main difference between dLocal and to invest in a part of the healthcare sector
0AG3EGURO 3TONE#OûISûITûISûACTIVEûACROSSû h)FûTHEûMARKETûHOLDS ûTHEREûWILLûBEûSOMEû other than drugmakers and biotech
EMERGINGûMARKETS very interesting LatAm companies coming COMPANIES
TOûMARKETûINûTHEûSOFTWAREûANDûlNTECHû
SPACES vûTHEûBANKERûSAID More than 80 investors participated in
the transaction with demand coming
GLOBAL CONVERTIBLE OFFERINGS GLOBAL CONVERTIBLE OFFERINGS – US evenly from outright investors and hedge
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE FUNDS

Managing No of Total Share Managing No of Total Share The credit spread was assumed at 350bp,
bank or group issues US$(m) (%) bank or group issues US$(m) (%) IMPLIEDûVOLATILITYûATû ûANDûTHEûBONDûmOORûATû

1 Goldman Sachs 49 12,137.47 12.5 1 Goldman Sachs 37 7,586.54 16.0
2 Bank of America 50 9,524.01 9.8 2 JP Morgan 43 7,226.16 15.2 4HEû#"ûTRADEDûUPûATû n ûINû
3 JP Morgan 52 8,946.34 9.2 3 Bank of America 43 6,259.89 13.2 THEûSECONDARYûMARKETûONû7EDNESDAY û
4 Morgan Stanley 42 8,448.36 8.7 4 Morgan Stanley 30 5,791.02 12.2
5 Citigroup 32 7,254.10 7.5 5 Barclays 18 2,998.74 6.3 The company will use the proceeds for
6 CICC 12 6,387.20 6.6 6 Citigroup 19 2,952.82 6.2 research and development, capital
7 Barclays 23 4,395.29 4.5 7 Credit Suisse 15 1,905.80 4.0 EXPENDITUREûANDûWORKINGûCAPITAL
8 Guotai Junan Secs 8 Wells Fargo 15 1,797.80 3.8
9 Credit Suisse 5 3,703.74 3.8 9 Jefferies CICC and JP MorganûAREûTHEûJOINTû
10 BNP Paribas 22 3,381.22 3.5 10 RBC 7 1,728.58 3.6 BOOKRUNNERS
18 2,292.23 2.4 9 1,245.35 2.6
Total 201 97,075.53 Total 85 47,409.92

Including exchangeables and domestic offerings. SDC code: C9 Source: Refinitiv SDC code: C9a
Source: Refinitiv

GLOBAL CONVERTIBLE OFFERINGS – EMEA ALL INTERNATIONAL ASIAN CONVERTIBLES ALL INTERNATIONAL ASIAN CONVERTIBLES
BOOKRUNNERS: 1/1/2021 TO DATE BOOKRUNNERS: 1/1/2021 TO DATE
(EXCLUDING JAPAN)
Managing No of Total Share Managing No of Total Share BOOKRUNNERS: 1/1/2021 TO DATE
bank or group issues US$(m) (%) bank or group issues US$(m) (%)
Managing No of Total Share
1 Citigroup 8 2,073.87 14.8 1 Goldman Sachs 5 2,558.98 19.7 bank or group issues US$(m) (%)
2 Goldman Sachs 7 1,991.95 14.2 2 Bank of America 2 1,654.36 12.8
3 Morgan Stanley 5 1,389.93 9.9 3 UBS 7 1,439.76 11.1 1 Goldman Sachs 5 2,558.98 21.9
4 HSBC 7 1,223.68 8.7 4 Morgan Stanley 7 1,267.40 9.8 2 Bank of America 2 1,654.36 14.2
5 BNP Paribas 9 1,145.35 8.2 5 Credit Suisse 5 1,087.82 8.4 3 UBS 7 1,439.76 12.3
6 JP Morgan 6 776.58 5.5 6 CICC 5 731.75 5.6 4 Credit Suisse 5 1,087.82 9.3
7 Bank of America 4 720.21 5.1 7 Nomura 3 665.03 5.1 5 Morgan Stanley 5 955.19 8.2
8 UniCredit 4 505.15 3.6 8 Citigroup 2 487.85 3.8 6 CICC 5 731.75 6.3
9 Deutsche Bank 3 497.63 3.6 9 DBS Group 2 395.83 3.1 7 Citigroup 2 487.85 4.2
10 Mediobanca 3 461.89 3.3 10 JP Morgan 1 393.60 3.0 8 DBS Group 2 395.83 3.4
27 14,001.60 27 12,964.63 9 JP Morgan 1 393.60 3.4
Total Total 10 HSBC 2 384.03 3.3
21 11,675.55
Including exchangeables. Including exchangeables. Total

Source: Refinitiv SDC code: C09d Source: Refinitiv SDC code: M10 Including exchangeables. SDC code: M11
Source: Refinitiv

EQUITY-LINKED DEALS WEEK ENDING: 4/6/2021

Issuer Country Date Amount Greenshoe Tenor Coupon/YTM % Premium (%) Bookrunner(s)
02/06/2021 US$700m - 5y CICC, JP Morgan
MicroPort Scientific China 03/06/2021 €400m - 3y 0 32.5 JP Morgan
03/06/2021 ¥20bn - 5y Daiwa, SMBC Nikko
JP Morgan/LVMH France 02/06/2021 £387.4m - 5y 0 20 Barclays, HSBC, Jefferies, Delta, Canaccord

GMO Payment Gateway Japan 0 40

Jet2 UK 1.625 40

88 International Financing Review June 5 2021

STRUCTURED EQUITY

JAPAN UK Demand was price insensitive up to the
mid-point but oversubscription was such
GMO PAYMENT GATEWAY ISSUES CB JET2 SITTING ON £1.6bn CASH FOLLOWING that the leads pushed higher on the
CB AND LOAN PREMIUM ûPRICINGûATûAû ûCOUPONûANDûAû
0AYMENTSûCOMPANYûGMO PAYMENT GATEWAY has ûPREMIUM û)NVESTORSûMOVEDûWITHûTHEû
raised ¥20bn (US$182m) from a convertible UK airline and package holiday company GUIDANCE ûWITHûAûFEWûADJUSTINGûORDERûSIZESûINû
BOND JET2ûADDEDûa MûTOûITSûALREADYûSWOLLENû RESPONSE
bank balance on Wednesday night
4HEûlVE
YEARûZEROûCOUPONû#"ûWASûPRICEDû THROUGHûTHEûISSUEûOFûlVE
YEARûCONVERTIBLEû 4HEûa MûDELTAûPLACINGûPRICEDûATû
ATûlXEDûCONVERSIONûPREMIUMûOFû û"OTHû bonds as it prepares to expand and a ûAû ûDISCOUNTûTOûTHEûCLOSE ûGIVINGû
the offer price and issue price came at the REFRESHûITSûmEET ANûINITIALûCONVERSIONûPRICEûOFûa û4HEû
TOPûOFûTHEû n ûANDû n ûRANGES û FULLûDELTAûWASû ûUSINGûTHEûLEADSû
RESPECTIVELY û 4RAVELûlRMû45)ûANDûAIRLINEûOWNERû)!'û NUMBERS
have both issued convertibles since the start
0ROCEEDSûWILLûBEûUSEDûASûWORKINGûCAPITALû of April and neither was an easy sell, so Jet2 A banker at one of the leads said the size
ANDûFORû- ! management introduced their company to OFûTHEûDELTAûPLACINGûREmECTEDû ûOFûTHEû
investors to show the airline was issuing bonds going to outright investors and 40% to
4HEREûISûAû
DAYûLOCK
UP FROMûAûPOSITIONûOFûRELATIVEûSTRENGTH û HEDGEûFUNDS û
Daiwa and SMBC NikkoûAREûTHEûJOINTû Management calls remain an all too rare
BOOKRUNNERSûANDûJOINTûLEADûMANAGERS FEATUREûOFûEQUITY
LINKEDûISSUANCE The shares underlying the bonds
REPRESENTû ûOFûEXISTINGûCAPITAL ûWITHûTHEû
FRANCE Jet2 had already raised close to £1bn of INCREASEûINûPROCEEDSûFROMûa MûATûLAUNCHû
LIQUIDITYûINûTHEûPASTûYEARûFROMûVARIOUSû SIMPLYûREmECTINGûTHEûCONVERSIONûPRICEû
JP MORGAN RETURNS WITH LVMH SOURCES ûINCLUDINGûGOVERNMENTûSCHEMES û4HEû ACHIEVED
SYNTHETIC MOSTûRECENTûOFûTWOûACCELERATEDûEQUITYûISSUESû
INûTHATûTIMEûRAISEDûa MûINû&EBRUARY The terms were attractive, with launch
JP MORGAN on Thursday issued an upsized guidance giving a theoretical value of
õ MûOFûBONDSûEXCHANGEABLEûINTOûLVMH 7EDNESDAYûNIGHT Sû#"ûLAUNCHûWASû n ûUSINGûAû BPûCREDITûANDû û
shares, having launched the deal at accompanied by a new £150m term loan VOL û4HATûWASûWELLûJUDGEDûCONSIDERINGûTHEû
õ M û4HEûTHREE
YEARûBONDSûWEREû RUNNINGûTOû3EPTEMBERû 5+ûGOVERNMENT SûREVISIONûOFûTRAVELû
OFFEREDûWITHûlXEDûTERMSûOFûANûISSUEû guidance hit Jet2 shares on Thursday
PRICEûOFû ûFORûAûNEGATIVEû ûYIELDû *ET ûWASûSITTINGûONûNEARLYûa BNûOFûCASH û afternoon, leading shares to close down
to maturity and a 20% exchange excluding customer deposits, at the end of ûATûa
PREMIUM March, with the latest actions taking that to
ABOUTûa BN *ET ûPLANSûTOûRESUMEûmIGHTSûONû*UNEû û
The reference price is the average of the 4HOUGHûSUMMERû ûBOOKINGSûREmECTû
DAILYû67!0SûFORûTHEûTHREEûTRADINGûDAYSûOFû 0RE
SOUNDINGûBEGANûONû4UESDAYûAFTERNOONû limited government-approved travel
*UNEû n and ran through Wednesday, before options, bookings for winter and next
LAUNCHINGûAFTERûTHEûCLOSE û4HEûSTRENGTHûOFû summer are encouraging, the company
The transaction continues a pattern of the response meant the deal launched SAID
*0-ûISSUINGûCASH
SETTLEDûZERO
COUPONû SIGNIlCANTLYûOVERSUBSCRIBED
exchangeables, most recently in Europe on Barclays, HSBC and Jefferies WEREûJOINTû
õ MûOFû%"SûINTOû3IEMENSûISSUEDûINû 4HEûlVE
YEARûNON
CALLûTHREEûBONDSû bookrunners for the convertible and co-lead
&EBRUARY û*0-ûISSUEDû%"SûINTOû,6-(ûINû WEREûOFFEREDûWITHûAûCOUPONûOFû n managers were Canaccord Genuity and Lloyds
ûANDûAûCONVERSIONûPREMIUMûOFû Bank û/NûTHEûDELTA û#ANACCORDûWASûAû
35%–40% to pricing in the concurrent BOOKRUNNER ûWITHû"ARCLAYS û(3"#ûANDû
DELTAûPLACEMENT û *EFFERIESûGLOBALûCOORDINATORS ûRothschild
ADVISEDû*ET

Are your colleagues as
well-informed as you?

As a subscriber to IFR, you will already be aware of its standing as the
world’s leading source of global capital markets coverage. But are your colleagues?

If there are other people in your team, department or company who you think would benefit
from the authoritative and independent content that IFR offers, you should know that
considerable discounts are available to companies with multiple subscriptions.

To discuss your requirements, please contact your local IFR representative:
EMEA: +44 (0)20 7542 45 69, cmi.emeasales@refinitiv.com
Americas: +1 (646) 223 5543, cmi.americassales@refinitiv.com
Asia-Pacific and Japan: +852 291 26606, cmi.asiasales@refinitiv.com

International Financing Review June 5 2021 89

LOOKING FOR A WIDER
VIEW OF THE GLOBAL
SYNDICATED LOAN
MARKET?

Look to Refinitiv LPC.
Refinitiv LPC is the premier global provider of information on the syndicated
loan market. Our first-to-the-market news and comprehensive real-time and
historical data help industry players stay informed about market trends and
facilitate trading and investment decisions.
LPC’s publications, end-of-day valuations, online news, analysis, and interactive
databases are used every day by banks, asset managers, law firms, regulators,
corporations and others to drive valuation, syndication, trading, research and
portfolio management activities.
Connect to the global syndicated loan market with Refinitiv LPC.
refinitiv.com
loanpricing.com
lpc.info@refinitiv.com

An LSEG Business

INTERNATIONAL FINANCING REVIEW CONTACTS

EDITOR SENIOR REPORTERS: LONDON DEPUTY CREDIT EDITOR TOKYO
Fixed-income: Jon Penner
Matthew Davies +44 (0)20 4530 3059 Helene Durand Wakako Sato
+44 (0)20 4530 3050 +44 (0)20 4530 3052 +813 6441 1876
NEW YORK
DEPUTY EDITOR NEWS EDITORS REPORTER: LONDON
Fixed-income: -ILUSKAû"ERROSPI Prudence Ho
Equities/Structured equity: +1 646 794 7193 *ULIANû"AKERû +44 (0)20 4530 3055
Owen Wild +44 (0)20 4530 3043
+44 (0)20 4530 2517 People & markets: Philip Scipio NEW YORK
+1 646 794 7392 DESK EDITORS
AMERICAS BUREAU CHIEF Rhys Adams
3TRUCTUREDûlNANCE ûRichard Leong 6INCENTû"ABY +1 609 651 9202
Jack Doran +1 646 794 7391 +852 2912 6612
+1 646 794 7384 Andrew Hedlund
HONG KONG )ANû%DMONDSON +1 646 794 7235
ASSOCIATE EDITORS +44 (0)20 4530 2638
People & markets: 4HOMASû"LOTT Sasha Padbidri
Features and analysis: Gareth Gore +852 2841 5878 David Holland +1 646 794 7218
+44 (0)20 4530 3054 +852 2912 6676
Fixed-income: Carol Chan PRINT/WEB PRODUCTION, LONDON
US editor: Stephen Lacey +852 2912 6604 CHIEF SUB-EDITOR Head of production: Clive George
+1 646 794 7390 Richard Stanbury
SYDNEY IFR production manager:
Fixed-income, Emerging markets: EDITORIAL ASSISTANT Carole Styles
Sudip Roy Fixed-income: John Weavers
+44 (0)20 4530 2562 +612 9373 1655 Anna Farish !NDREASû-ICHAEL û.ITAû7EBB û
+44 (0)20 4530 3053 Gavin White
People & markets: Steven Slater TOKYO
+44 (0)20 4530 3063 LOANS EDITOR GLOBAL HEAD – ADVERTISING &
Fixed-income: Takahiro Okamoto
Green/ESG Financing Editor: +813 6441 1773 Chris Mangham SPONSORSHIP SALES
Tessa Walsh )&2û!SSOCIATEû%DITOR
+44 (0)20 4530 3065 REPORTERS: LONDON +44 (0)20 4530 3057 Shahid Hamid
Fixed-income: David Cheetham +65 9755 5031
Derivatives: Christopher Whittall +44 (0)20 4530 3048 BUREAU CHIEF: LONDON
+44 (0)20 4530 3066 Claire Ruckin ADVERTISING & SPONSORSHIP
Fixed-income: Edward Clark +44 (0)20 4530 3061
MANAGING EDITOR +44 (0)20 4530 3049 SALES DIRECTOR
BUREAU CHIEF: HONG KONG
Philip Wright Fixed-income: Eleanor Duncan Prakash Chakravarti Leonie Welss
+44 (0)20 4530 3067 +44 (0)20 4530 3051 +852 2912 6671 +44 (0)20 4530 3073

IFR ASIA EDITOR Fixed-income: Ross Lancaster BUREAU CHIEF: NEW YORK GLOBAL ADVERTISING
+44 (0)20 4530 2887 Michelle Sierra PRODUCTION MANAGER
Steve Garton +1 646 794 7394
+852 2912 6670 Fixed-income: Tom Revell 'LORIAû"ALBASTRO
+44 (0)20 4530 2695 DEPUTY EDITOR: ASIA-PACIFIC +44 (0)20 4530 3074
HEAD OF ASIA CREDIT Chien Mi Wong
Equities: Lucy Raitano +852 2912 6611 SUBSCRIPTION SALES ENQUIRIES
Daniel Stanton +44 (0)20 4530 2693
+65 6417 4548 SENIOR REPORTERS: LONDON UK/EMEA: +44 (0)20 7542 4569
Fixed-income: Malicka Sielinou 3ANDRINEû"RADLEYû Americas: +1 646 223 5543
EQUITIES EDITOR, ASIA +44 (0)20 4530 3062 +44 (0)20 4530 3045 Asia: +852 291 26606
Fiona Lau
+852 2912 6673 NEW YORK Alasdair Reilly CLIENT SERVICES
+44 (0)20 4530 3060
ASSISTANT EDITORS: LONDON Fixed-income: William Hoffman IFR.Clientsupport@refinitiv.com
Emerging Markets: Robert Hogg +1 646 794 7388 NEW YORK
+44 (0)20 4530 3056 NEW ISSUES LEAGUE TABLE & DATABASE
Fixed-income: Sunny Oh $AVIDû"ROOKEû Loans: )OLANDAû"ARBATI
People & markets: +1 917 680 0791 +1 646 794 7382 +44 (0)20 4530 2000
Christopher Spink
+44 (0)20 4530 3064 Equities: Robert Sherwood Kristen Haunss ECM: Rebecca Cox
+1 646 794 7052 +1 646 794 7387 +44 (0)20 4530 2000
Equities/Structured equity:
Robert Venes HONG KONG HONG KONG DCM: )ANû7ILLMOTT
+44 (0)20 4530 2523 +44 (0)20 4530 2512
Equities: Candy Chan Aileen Chuang
NEW YORK +852 2912 6672 +852 3761 1934 REPRINTS OR LICENCE TO COPY

Fixed-income: $AVIDû"ELL Fixed-income: Jihye Hwang Apple Li 'LORIAû"ALBASTRO
+1 646 794 7381 +852 2843 1679 +852 2912 6685 +44 (0)20 4530 3074

Equities: Anthony Hughes SINGAPORE Evelynn Lin E-MAIL ADDRESSES
+1 646 794 7389 +852 2912 6607 lRSTNAME LASTNAME LSEG COM
Fixed-income: Krishna Merchant
SINGAPORE +91 9833847353 SINGAPORE

Equities: Anuradha Subramanyan BEIJING Mirzaan Jamwal
+65 6417 4547 +65 6417 4541
Equities: Karen Tian
SENIOR CREDIT CORESPONDENT +86 10 6627 1045 SYDNEY

+ITû9INû"OEY CREDIT EDITOR -ARIKOû)SHIKAWA
+65 6417 4549 +61 2 9321 8179
Alex Chambers
+44 (0)20 4530 3047

LONDON, HEAD OFFICE NEW YORK HONG KONG SINGAPORE
5 Canada Square
London 3 Times Square THûmOOR û)#"#û4OWER 18 Science Park Drive
E14 5AQ 18th Floor Three Garden Road Singapore 118229
Tel +44 (0)20 4530 2000 New York Central Tel +65 6775 5088
NY10036 Hong Kong
Tel +852 3761 1800

4HEûCONTENTSûOFûTHISûPUBLICATION ûEITHERûINûWHOLEûORûPART ûMAYûNOTûBEûREPRODUCED ûSTOREDûINûAûDATAûRETRIEVALûSYSTEMûORûTRANSMITTEDûINûANYûFORMûORûBYûANYûMEANS ûELECTRONIC ûMECHANICAL û
PHOTOCOPYING ûRECORDINGûORûOTHERWISEûWITHOUTûWRITTENûPERMISSIONûOFûTHEûPUBLûISHERS û!CTIONûWILLûBEûTAKENûAGAINSTûCOMPANIESûORûINDIVIDUALûPERSONSûWHOûIGNOREûTHISûWARNING û4HEû
INFORMATIONûSETûFORTHûHEREINûHASûBEENûOBTAINEDûFROMûSOURCESûWHICHûWEûBELIEVEûTOûBEûRELIABLE ûBUTûISûNOTûGUARANTEED û3UBSCRIPTIONSûTOû)&2ûAREûNON
REFUNDABLEûAFTERûTHEIRûCOMMENCEMENTû
ISSUEûDATE ûÊû2EFINITIVû û2EGISTEREDûASûAûNEWSPAPERûATûTHEû0OSTû/FlCE û2EGISTEREDû/FlCE û2EFINITIV û û#ANADAû3QUARE û#ANARYû7HARF û,ONDONû% û !1 û2EGISTEREDûNO û û
%NGLAND û0RINTEDûINû%NGLANDûBYû7ALSTEADû2OCHEû,TD û)33. û
û5NAUTHORISEDûPHOTOCOPYINGûISûILLEGAL

International Financing Review June 5 2021 91

INTERNATIONAL FINANCING REVIEW INDEX

1stDibs 83 Confluent 84 John Laing 7 Primafrio 80
29Metals 73 Core & Main 67 JP Morgan 12, 13, 89 Proofpoint 67
ABN AMRO 10 Council of Europe 21 Kanzhun Prosafe 71
Accor Acquisition Company 77 Development Bank KEB Hana 74 Protective Industrial Products 69
Aegon Bank 33 CPPIB Capital 25 Kensington Mortgage 54 Province of Ontario 23
Ag Resource Management 40 Credipar 39 Company 20 Rabobank 10
Agence Francaise de 25 Credit Agricole 10, 31 Kepler Cheuvreux Raiffeisenbank 31
Developpement Credit Immobilier de 37 Keypath Education 10 Razer 75
Agile Group Holdings 61 France Developpement KfW 73 Regions-BlackArch 10
Aihuishou International 75 Credit Suisse 15 Kingfisher 24 RWE 27
Alstom 78 Crown Holdings 19 Kingspan 65 Saltaire Finance 28
AMC Entertainment 4 Culligan 69 Kommunalbanken 64 Sanghiang Perkasa 75
Amigo 18 Cushman & Wakefield 86 Koninklijke Philips 25 Santander 10
AMP Bank 41 Danske Bank 30 KPS 19 Scape Urbanest Finance 60
Angelalign Technology 75 David Lloyd Leisure 19 Krispy Kreme 19 Sculptor Capital 41
Apple 83 DenizBank 64 LendInvest 85 Management
Aquila Energy Efficiency Trust 82 Deutsche Bank 10, 17 LG Energy Solution 38 Sculptor Europe Loan 39
Archi Indonesia 75 Diamond Communications 41 Lifestance Health 77 Management
Argenta Spaarbank 37 dLocal 82, 87 LMPG 82 Senegal 49
Arizona Public Service Co 67 Duluth 8 Lotte Rental 87 SentinelOne 82
Arnott’s 71 Eni 2 LVMH 77 SF Holdings 74
Asian Development Bank 21 Enviva Partners 84 Macquarie 89 Shui On Development 61
Atlantic Sapphire 80 EPS Holdings 62 Made.com 10 (Holding)
Atresmedia 64 Equiniti 7 Madison IAQ 81 Sichuan Languang 50
Auto1 Group 78 European Financial 24 Marex Spectron Group 69 Development
Autopista Rio Magdalena 57 Stability Facility Marqeta 81 Social Capital Suvretta 86
Avanti Finance 37 European Union 2, 24 MFB 73 Holdings I
Bain Capital Credit 39 EWE 27 MicroPort MedBot 54 Societe Generale 30
Baltic Classified 79 Exane 10 MicroPort Scientific 74 SoftBank Group 29, 60
Banco do Brasil 10 Fairbanks Morse Defense 69 MilDef Group 88 Solera
Bank of Montreal 34 Faurecia 63 Mining Industry Indonesia 81 Sovos Brands 69
Banque Federative 33 FireEye 69 Mister Car Wash 62 SPP Distribucia 69
du Credit Mutuel First Advantage 85 Mitsubishi UFJ Financial 85 Sprinklr 55
Barclays 10, 33 FKS Food & Agri 77 MMG 31 Standard Chartered 86
Barrenjoey 10 FMC 66 Monday.com 76 State of Hessen 12, 18
BBGI Global Infrastructure 65 Freeport Indonesia 62 Mondi 79 Suominen 23
BC Group 18 GMO Payment Gateway 89 Morgan Stanley 65 Swedbank 63
Belfius Bank 31 GogoX 76 Morningstar 12, 13 Sweden 32
Believe 5 Goldman Sachs Bank Europe 39 Motor Fuel Group 10 Swisscard AECS 25
BME Group 71 Greentown China Holdings 61 MTF Finance 70 Syneos Health 39
BMW 29 Grosvenor 65 Nationwide Building Society 41 TaskUs 85
BNP Paribas Grupo Axo 57 Natixis 33 TE Connectivity 83
Bombardier 10, 39 Grupo Comercial Chedraui 67 Nayuki Holdings 10 Techcombank 67
Booz Allen Hamilton 34 GV Gold 80 Nestle 75 Telekom Slovenia 63
Brickability Group 67 HeadHunter 80 Neusoft Medical Systems 26 Together Commercial 64
CaixaBank 81 Heartland Dental 68 Neusoft Xikang 74 Finance 38
Cal-Comp Electronics 33 Hillhouse Capital 19 New Zealand Treasury 74 TPG Telecom Finance
(Thailand) 63 HP 66 Nomura 25 Transcom 60
Cambium Networks HSBC Nordgold 10, 17 Triton International 19, 36
Canara Bank 85 Huitongda Network 12, 15 Now Finance 80 Truist Financial
Capitalmind 76 Hungarian Development 74 Nuvei Technologies 41 UBS 66
Caruna Networks 10 Bank 54 Nuvei 68 UDG Healthcare 30
Castilla y Leon 28 Hurricane Energy NX Filtration 87 UK Residential REIT 10
CCC 23 Hygeia Healthcare 18 Nykaa 79 UniCredit 7, 70
CELF Advisors 64 ICBC London Branch 76 Oasis Market 76 US Bank 81
Chailease International 39 I-Med 65 Oddo BHF 77 Vallourec 10
Finance 61 Indian Oil Corp 71 Osmose Utilities Services 10 Vectura 30
Charoen Pokphand Group Indofood CBP Sukses 62 Parts Holding Europe 69 Verve Therapeutics 78
Chia Tai Investment 4, 59 Makmur 51 Payroll 5, 77 Vietnam International
China Hongqiao Group 4 Indonesia Paysafe 76 Commercial Joint Stock Bank 7
China Renaissance Holdings Infront Sports & Media 51 Peel Hunt 19, 70 Viterra 84
China Three Gorges 50 ING Groep 70 PepsiCo 10 Vodafone 63
Renewables (Group) 61 Integral Ad Science 30 Permascand 66 Vonovia
Cinemark 76 Inter-American 82 Petrobras 81 Waterland 64
Citigroup Development Bank 22 PetroRio 56 Westport Fuel Systems 26
City Developments 35 Interior Logic Pexa Group 56 Wipro 28
Close Brothers Group 12, 15, 30 Intershop Holding 68 Pinnacle West Capital Corp 73 Worley 64
Coal & Allied Industries Investec 29 Popular Vehicles & Services 67 Xometry 87
Commerzbank 76 Italian Sea Group 10 Prestige Brands 76 Yancoal Australia 62
Communaute Francaise 31 Jarden 79 68 Yancoal Resources 27
de Belgique 60 JC International Finance 10 Zeta Global 82
Companhia Siderurgica 10 & Leasing 61 Zhangmen Education 60
Nacional 23 Jet2 Zim Integrated 60
89 Shipping Services 83
56 74
79

92 International Financing Review June 5 2021

BEFORE THE
MARKETS MOVE,
MAKE YOURS.

Stay ahead of the commodities markets with
real-time news, data and analytics in Eikon.
refinitiv.com

PFI US ENERGY TRANSITION
ROUNDTABLE WEBCAST

The Biden administration has come out of the blocks fast with a DATE
massive infrastructure programme, in part aimed at combatting JUNE 23 2021
climate change. The transition to green energy will require a
huge capital spend and the project finance industry is gearing TIME
up to be a key part of it. 10AM EDT

The PFI US Energy Transition Roundtable webcast takes place FORMAT
at 10am EDT on Wednesday June 23 2021. Moderated by WEBCAST
Project Finance International’s Nic Stone, the webcast will bring
together a panel of senior market professionals, with discussion FREE TO ATTEND!
points to include:

• 2021 – the year of US offshore wind

• Batteries and energy storage – project finance deals emerging in this key sector

• Hydrogen – a project finance sector for the future?

• How will deals backing these assets be structured?

• What are the critical factors to look out for?

• Where are deal makers seeing the most activity?

• How will project finance need to adapt to this new paradigm?

The webcast is free to join. You can register and find out more information at
https://bit.ly/2QWlAKf

Sponsored by: