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A force for change:
For emerging as a disruptive and increasingly influential force in the leveraged loan market, while taking market share from established houses and leading innovation in a rapidly changing landscape, KKR Capital Markets is IFR’s Americas Loan House of the Year.
Best medicine Biopharmaceutical company Bristol-Myers Squibb’s US$33.5bn bridge financing was a master-class in executing a large acquisition facility. The bridge loan financed Bristol-Myers’ US$74bn purchase of Celgene, combining two of the world’s largest cancer drug businesses in the biggest pharmaceutical deal ever. At the time it was the sixth-largest US bridge loan on record, and the second-largest in the US healthcare segment. “It really speaks to how we do business, and really try to serve our client’s objectives. That’s our number...
Beyond the norm Mexican pulp and paper company Grupo Gondi ticked all the boxes with its latest refinancing effort, covering its immediate liabilities through a rare 10-year term loan and reverse-flexing pricing after heavy demand from a surfeit of lenders. In September, Gondi’s dual-currency financing came to approximately US$455m, with a Ps7.4424bn 10-year unsecured term loan and a US$75m private placement. And while it was not the year’s largest transaction, Gondi’s loan was the only corporate deal from Latin America to stretch out that long...
Gold standard
For skillfully navigating a difficult market, successfully weighing up risk-reward and making bold decisions when advising borrowers, and for consistently supporting sponsors and investors by underwriting and distributing large and small deals, Goldman Sachs is IFR’s EMEA Loan House of the Year.
Merck makes its mark German healthcare, life science and performance materials company Merck’s US$6.3bn-equivalent loan backing its takeover of US-based Versum Materials provided an exceptional example of a tightly priced acquisition loan with a quick bond takeout. Merck has made around €40bn of acquisitions and divestments since 2007, transforming itself into one of the world’s largest science and technology companies by revenues. Those transactions included the momentous US$17bn acquisition of US-based lab supplies company Sigma-Aldrich in...
Quick and nimble
A slowdown in the global economy and the worsening trade dispute between the US and China intensified competition in the Asian loan market in 2019. For navigating the challenges and staying true to its clients, Citigroup is IFR’s Asia-Pacific Loan House of the Year.
Best foot forward Chinese sportswear giant Anta Sports Products wrapped up a €2.2bn five-year loan that attracted 21 banks, winning an overwhelming vote of confidence in a transformational European acquisition. The recourse financing was essential to the purchase of Finland’s Amer Sports and stood out for its successful execution despite the lack of familiarity with Anta among lenders, geopolitical issues, timing and tight pricing. In September 2018, Hong Kong-listed Anta and Asian private equity firm Fountainvest Partners tabled a bid of €40...
Paving the way When Blackstone Group was looking to monetise its investment in publicly traded liquefied natural gas exporter Cheniere Energy Partners, Morgan Stanley offered a unique pitch. The private equity firm, through its Blackstone CQP entity, could retain ownership of its shares by taking out a US$2.6bn five-year holdco loan that would, in part, pay a dividend. The transaction, which was upsized during syndication, is the largest minority equity interest-backed term loan B, and the largest dividend recapitalisation of 2019. The...
Built to order When Barclays brought on-demand legal talent platform Axiom Global to market, the investment bank put together a tailor-made execution strategy that served several needs. The loan was met with strong demand from investors despite significant challenges. The borrower operates in a segment previously unknown to investors, and it launched during a particularly turbulent period in the syndicated loan market. Axiom has disrupted the legal landscape by filling the need for legal services that exists between big corporate law firms...
Trade tensions between Beijing and Washington are threatening to spill over into capital markets, with some policymakers even calling for a ban on Chinese listings in the US. Just how far can it go?
As Japanese fund managers broaden their search for yield, international issuers are finding they no longer need to spend the time and money to prepare local language documentation. Old habits die hard, however, and lengthy marketing periods are still standard practice.
Primary bond markets have proved a testing ground for the transition from inter-bank offered rates to new alternative risk-free rates. But the abundance of issuance referenced to Sonia and SOFR should not obscure the unfortunate fact that most of the proceeds have immediately been swapped back to Libor by the borrowers.
Is the traditional green bond market threatened by the emergence of transition bonds, SDG bonds, general-purpose bonds with environmental targets and other debt classes intended to encompass wider environmental goals? Does it matter if new market segments are more effective at reducing the emission of greenhouse gases?
As another painful year for Europe’s banks draws to a close, the need for big bank consolidation has never been greater.
