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8/13/2019 e99af9d2b6a0aec1b27d7fa23e9eb9df EuropeBondsandLoans-YTDSept2013 Text

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59 66 48 57

126 131

183

95

167

138 169

57 10

43

86

91

48

77

0

50

100

150

200

250

300

2005 2006 2007 2008 2009 2010 2011 2012 YTD 04Sept 2012

YTD 04Sept 2013

Leveraged Loans High Yield Bonds

European Leveraged Finance in Review

Value of Leveraged Loans and High Yield Bonds Issued 2005 - YTD September 2013

Volume of Leveraged Loan Deals and High Yield Bonds issued 2005 - YTD September 2013

N.B. Debtwire leveraged loan data commences from 2006

ANALYTICS

18,929 32,946 17,005 29,798 56,261 48,029 69,595 31,830 61,454

194,018

192,084

46,8085,257

28,714 35,960

70,169

40,616

56,720

0

50,000

100,000

150,000

200,000

250,000

2005 2006 2007 2008 2009 2010 2011 2012 YTD 04 Sept

2012

YTD 04 Sept

2013

Leveraged Loans High Yield BondsEURm

The value of new debt issued by leveraged companies in Europe increased by 63.1% YoY to EUR 118.2bn-equivalent in the nine months to 4

September 2013.

This was driven by an almost doubling in the value of high yield issuance YoY to EUR 61.5bn and a 40.6% YoY jump in leveraged loan allocations, to

EUR 56.7bn.

Issuers across Europe printed a total of 167 high yield bonds in the nine-month period, up from 95 in the same period in 2012, while the number of

leveraged loan deals were 60.4% higher YoY at 77. This resulted in a slight decline in the average leveraged loan deal size, to EUR 737m in YTD

2013, compared with EUR 846m in YTD 2012.

German companies were the largest issuers in YTD September 2013, raising a total of EUR 27.2bn of high yield bonds and leveraged loans. They

were followed by UK businesses, which brought EUR 22.8bn of debt in the same period.

While companies in the two countries raised a similar level of new bonds of around EUR 13bn, Germany companies were able to tap the loan market

with far greater ease, and raised EUR 15bn of new leveraged loans, compared with EUR 10.6bn in the UK.


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High Yield Bond Issuance by Country YTD September 2013 High Yield Bond Issuance by Industry YTD September 2013

High Yield Bond Issuance by Industry YTD September 2012

200

1,009

171

381

249

500

4,018

5,820

1,546

1,955

189

2,115

98

400

557

1,540

872

2,995

5,4231,793

Austria

Belgium

Bermuda

Canada

Denmark

Finland

France

Germany

Ireland (Republic)

Italy

Jamaica

Netherlands

Norway

Portugal

South Africa

Spain

Sweden

Switzerland

United KingdomUSA

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

EURm

High Yield Bond Issuance by Country YTD September 2012

ANALYTICS


5,874

2,851

1,100

1,781

239

230

2,575

300

1,320

581

258

1,300

1,647

2,917

1,015

6,960

881

Automotive

Chemicals and materials

Con struction & Homebuilding

Energy Services

Financial Services

Gaming

Healthcare

Industrial pr oducts and services

Leisure

Manufacturing

Metals & Minin g

Packaging

Paper & Forest Products

Services

Technology

Telecommunications

Transportation

0 2,000 4,000 6,000 8,000

EURm

9,761

2,387

1,500

530

3,505

2,756

1,856

1,339

4,350

1,925

1,489

250

275

1,129

2,161

350

300

200

3,774

4,773

1,053

14,330

1,021

440

Automotive

Chemic als and materials


Consumer Products

Energy Services

Financial Services

Food & Beverage

Gaming

Healthcare

Ind ustrial products and services

Leisure

Manufacturing

Metals & Minin g

Oil & Gas

Packaging

Paper & Forest Products

Pharmaceuticals

Real Estate

Retail

Services

Technology

Telecommunications

Transportation

Utilities

0 5,000 10,000 15,000 20,000

EURm

Telecommunications issuers have led the high yield market so far in 2013, bringing the two largest single bonds to market in the period. Total high

yield issuance by telecoms companies in YTD 2013 stood at EUR 14.3bn, compared with EUR 6.96bn in the first nine months of 2012.

The biggest was a USD 2.49bn 4.5% seven-year senior unsecured note priced by Japanese telecoms group Softbank Corp in April 2013 to back

its acquisition of Sprint Nextel. UK cable company Virgin Media also issued a GBP 1.1bn 6% eight-year senior secured bond in February as part of

the funding for its buyout by Liberty Global.

Telecoms groups also brought a total EUR 11bn of leveraged loans between January and September 2013, up from EUR 3.03bn in the prior-year

period. These included a USD 2.78bn term loan B allocated by Virgin Media as part of its buyout.

300

75

241

171

250

6,732

12,193

2,050

111

177

750

6,004

749

2,530

1,456

1,828

167

1,350

300

2,440

477

3,798

13,576

3,728

Austria

Belgium

Bermuda

Canada

Finland

France

Germany

Greece

Hong Kong

Iceland

Ireland (Republic)

Italy

Jamaica

Japan

Luxembourg

Netherlands

Norway

Portugal

South Africa

Spain

Sweden

Switzerland

United Kingdom

USA

0 5,000 10,000 15,000

EURm


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Leveraged Loan Issuance by Country YTD September 2013 Leveraged Loan Issuance by Industry YTD September 2013

6,037

2,683

1,299

544

4,117

6,158

666

2,090

932

932

1,007

457

1,828

3,551

4,784

3,031

500

Automotive

Chemicals an d materials

Construction & Homebuilding

Financial Services

Foo d & Beverage

Healthcare

Industrial products and services

Leisure

Manufacturing

Media

Packaging

Pharmaceuticals

Retail

Services

Technology

Telecommunications

Transportation

0 2,000 4,000 6,000 8,000

EURm

Leveraged Loan Issuance by Industry YTD September 2012Leveraged Loan Issuance by Country YTD September 2012

ANALYTICS


169

602

7,025

15,044

187

1,375

797

8,011

1,381

555

924

1,321

10,625

8,705

Belgium

Denmark

France

Germany

Greece

Ireland (Republic)

Luxembourg

Netherlands

Norway

Spain

Sweden

Switzerland

United Kingdom

USA

0 5,000 10,000 15,000 20,000

EURm

386

500

600

4,719

9,827

500

490

290

3,706

1,575

1,578

9,689

6,756

Belgium

Canada

Finland

France

Germany

Italy

Netherlands

Norway

Spain

Sweden

Switzerland

United Kingdom

USA

0 5,000 10,000 15,000

EURm

4,778

5,940

828

359

4,502

1,621

4,138

1,126

884

1,724

1,748

2,406

80

1,754

871

2,209

5,869

4,087

11,042

754

Automotive

Chemic als and materials


Consumer Products

Energy Services

Entertainment

Food & Beverage

Healthcare

Industrial products and services

Leisure

Manufacturing

Media

Metals & Mining

Packaging

Pharmaceuticals

Retail

Services

Technology

Telecommunications

Transportation

0 2,000 4,000 6,000 8,000 10,000 12,000

EURm

The automotive industry was the second-most active in the high yield market in the first nine months of 2013, with companies across Europe

issuing a total of EUR 9.76bn of new bonds. This was an increase from EUR 5.87bn in the same period in 2012.

Among the large issuers in this industry were Italian carmaker Fiat SpA, which printed a EUR 1.25bn five-year 6.625% senior unsecured bond in

March, and French group PSA Peugeot, which brought a EUR 1bn five-year 7.5% senior unsecured note in February. Both of these bonds were

raised to fund general corporate purposes.

While automotive companies were less active in the loan market, Germany tyre producer Continental AG, allocated a jumbo EUR 3bn five-year

senior secured revolving credit facility in January 2013 to refinance existing debt.

A number of new industries have been represented in bond and loan issuance in YTD 2013 that did not issue debt in the same period in 2012,

including the consumer products, retail, energy services and a pharmaceutical deal.

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