An Acuris Company
3Q19 European Leveraged Insights An overview of the leveraged loan & high-yield bond markets
Colm (CJ) Doherty Global Head of Primary Market Analysis, Debtwire Par +1 212 390 7838 [email protected]
Diana Apedu Market Analyst, Debtwire Par +44 203 741 1081 [email protected] European Leveraged Insights – 3Q19 An Acuris Company
Commentary:
Key market trends in the leveraged loan & high yield bond markets 4-6
Leveraged Loans:
Scorecards 7-9
Issuance overview 10-34
Pricing 35-48
Industry stats 49-64
Country stats 65-79
Credit statistics 80-85
Deals coming to market/Deals in market 86-89
Secondary market snapshot 90-101
Outstanding debt stats 102-106
CLO market focus 107-120
Continued on next slide…..
2 European Leveraged Insights – 3Q19 An Acuris Company
…..Continued from prior slide High yield bonds:
Scorecards 121-123
Issuance overview 124-137
Pricing 138-142
Industry stats 143-156
Country stats 157-166
Secondary market snapshot 167-169
3 European Leveraged Insights – 3Q19 An Acuris Company
Market Commentary:
Appetite for leveraged loans and high yield bonds remains strong
The appetite for leveraged loans and high yield bonds remains robust. On the bond side, there have been inflows into high yield bond funds, while loans have also seen inflows via CLOs and new separately managed account (SMA) money. This appetite is mainly driven by the low/negative rate for longer environment, which has resulted in very strong demand for yield.
Portfolio managers says that the SMA’s are seeing inflows from a mix of Asian and European sources, and increased interest from pension funds. According to one buysider, pension funds are interested in loans “because you get a higher spread right now and less volatility on the underlying instruments and given we are in a negative rate environment, loans with 0% floors are effectively becoming a fixed rate instrument unless you think the ECB is going to start hiking soon, so you are getting a fixed spread over a fixed base rate, so loans are more like fixed rate instruments.”
On the CLO side, European new-issue volume this year, at EUR 22.2bn, is ahead of the EUR 20.7bn posted in the same period last year. After a quiet August, which saw no deals price, issuance in September got back on track with 5 deals pricing for a total of EUR 2bn.
Despite the appetite for loans, supply is down this year, with leveraged loan volume off 10% at EUR 147bn and the institutional loan segment down 8% to EUR 80bn (and the new money portion down a much larger 20% to EUR 50bn). On a quarterly basis, leveraged loan volume fell to EUR 48bn in 3Q19 from EUR 58bn in 2Q19.
On the other hand, high yield bond volume climbed to EUR 26.9bn in 3Q19, topping the EUR 25.7bn posted in 2Q19. This took year-to-date volume to EUR 63.6bn, a 2% gain over the EUR 62.1bn posted in the corresponding period last year.
Lenders say they can be selective despite drop in issuance YTD; secondary market is good source of assets
While loan issuance is down year-over-year, buysiders say they can still be selective in their investments, given the loan market as a whole is still growing in terms of outstanding debt, with one stating “we are still very selective and we keep track of our decline rates over time and this year we have declined more deals than the last few years and that can be based on fundamentals, or leverage profile, or docs.” Continued next page… 4 European Leveraged Insights – 3Q19 An Acuris Company
...Continued from prior page
On top of this, they note the secondary market can be a good option for them to pick up paper despite the technical environment, “we can still buy assets in the secondary market that were issued last year or the year before and some of these names were issued with an EBITDA number that was inflated, so you can pick these up at 95, 96, 97, so we are not being forced into the market even though we are seeing inflows.”
That said, a large chunk of the secondary market is highly priced. A backdrop of strong market technicals has pushed the secondary loan market to loftier levels in recent weeks. The share of institutional loans bid in the par-plus area has climbed sharply to 57%, up from 49% a month earlier. At the same time, the average bid has climbed to 98.53.
Relative value favors loans
From a relative value perspective, one portfolio manager who invests in both asset classes says bonds looked more attractive versus loans at the beginning of the year, but more recently, they have done the reverse trade and favored loans, and right now are not buying many bonds as they consider loans to be more attractive at these levels.
Limited overlap between leveraged loan and HY bond issuers leads to differences in sector issuance
Given the low level of overlap between Western European leveraged loan and high yield bond issuers this year, there are some notable differences in issuance by broad sector classification.
While the industrial & chemicals sector tops the list for both leveraged loans (25% share) and high yield bonds (21% share), the second most active sector for leveraged loans is pharma, medical & biotech, which accounts for 12% of deal flow, compared to a lowly 1% of high yield bond issuance. Another notable difference is in the financial services sector, which accounts for only 3% of leveraged loan issuance year-to-date versus 18% of high yield bonds.
Continued next page…
5 European Leveraged Insights – 3Q19 An Acuris Company
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When narrowing down the leveraged loan market to look at the institutional loan segment, industrial & chemicals maintains the top spot (20%) but the second and third placed sectors are much closer, with pharma, medical & biotech and business services representing 18% and 17% of deal flow, respectively.
Even though the industrial & chemicals sector tops both the institutional loan and high yield bond categories, the largest issuers in that sector are different in both markets. On the institutional loan side, the top 3 are JCI Power Solutions, Evonik Industries (Methacrylates) and Berry Global. For high yield bonds it’s Trivium Packaging, IHO Verwaltungs and ThyssenKrupp AG.
Looking ahead
Though lenders express worries about the current macroeconomic picture, citing trade wars and Brexit, buysiders say they expect default rates to only increase by a small amount in the near-term as cash interest coverage on average is still relatively healthy given where all-in interest rates are at for borrowers. Overall the expectation is that defaults will remain low in the near-term, increasing to the 1-2% area and still providing support for credit.
Future loan supply is not easy to judge the further one looks into the future. Buysiders say they are busy right now at the end of September and expect October to see relatively less deal flow. Further out, the thinking is that the second half of 4Q19 should be quiet, and that 1Q20 should see a pick-up in activity but it’s too early to take a strong view on this right now.
This leaves the market relying on new private equity deals happening in the next couple of months in order to start building the supply pipeline for 1Q20.
Like in the US market, there is a degree of caution in the loan market, with concerns around price risk and not just credit risk, as investors try not to make a mistake going into the final quarter of the year. At the individual credit level, loan investors are cautious around the potential for weak performance resulting in a big drop in a name in the secondary market and dragging down performance as we approach the end of 2019.
6 An Acuris Company
3Q19
Leveraged loan scorecards European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan market scorecard - Quarterly
YoY change 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 2018 YTD 2019 YTD - (2019YTD vs (EUR bn) (EUR bn) (EUR bn) (EUR bn) (EUR bn) (EUR bn) (EUR bn) (EUR bn) (EUR bn) 2018YTD) Leveraged issuance 55.01 59.44 47.83 40.25 40.55 58.29 47.71 162.27 146.55 -10% New money leveraged issuance 33.54 30.62 36.32 15.38 26.83 30.41 27.54 100.48 84.78 -16%
Institutional issuance 31.10 28.79 27.00 25.00 17.99 29.66 32.53 86.88 80.18 -8% New money institutional issuance 20.89 17.34 24.38 10.67 14.15 18.24 17.44 62.61 49.83 -20%
Leveraged M&A loan issuance (ex. LBOs) 12.89 8.62 8.68 4.86 10.64 4.50 6.25 30.19 21.40 -29% LBO loan issuance 12.11 16.75 19.43 8.24 7.22 11.10 13.00 48.29 31.32 -35% Sponsored loan issuance 35.26 33.72 32.79 31.53 24.94 30.81 24.53 101.77 80.29 -21% Second-lien issuance 0.78 1.49 1.14 1.09 0.88 0.19 0.52 3.40 1.59 -53% Reverse Yankee issuance 4.36 9.79 6.39 5.43 1.67 3.89 4.24 20.55 9.80 -52%
CLO issuance – new 6.17 7.13 7.43 6.49 6.89 7.83 7.43 20.73 22.1 7% CLO issuance – refinancing 0.73 1.24 1.44 - - 2.0 1.9 3.40 3.9 14% CLO issuance – resets 3.00 2.01 3.42 1.49 0.36 0.3 2.6 8.42 3.2 -62% CLO issuance - reissues 0.56 1.79 1.33 0.40 0.48 - - 3.68 0.5 -87%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Avg. pro rata margin 256bps 280bps 300bps 215bps 269bps 316bps 274bps
Avg. institutional loan margin – first liens 367bps 352bps 401bps 357bps 427bps 400bps 376bps
Secondary market - Institutional term 31-Jan-19 28-Feb-19 29-Mar-19 30-Apr-19 31-May-19 28-Jun-19 31-Jul-19 30-Aug-19 30-Sep-19 loans Wtd. Avg. Bid 97.5 97.97 97.86 98.41 98.46 98.48 98.82 98.4 98.53 Wtd. Par-plus share 10% 22% 13% 35% 35% 37% 43% 49% 57% Wtd. Sub-90 share 6% 4% 5% 4% 3% 4% 4% 5% 4% Advancer % (all loans) 52% 75% 39% 80% 55% 40% 48% 42% 62% Decliner % (all loans) 38% 18% 52% 11% 34% 42% 42% 42% 34% Unchanged % (all loans) 10% 7% 9% 9% 11% 18% 10% 16% 4% Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Credit Suisse Leveraged Loan Index 1.15% 0.92% -0.07% 0.90% -0.04% 0.13% 0.44% 0.03% 0.56%
*Subject to further updates as more data is collected 8 Source: Debtwire Par European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan market scorecard - Annual
- 2015 2016 2017 2018 2019 YTD
Leveraged issuance 107 151 281.8 202.5 146.5 New money leveraged issuance 66.1 73.1 128.1 115.7 84.8
Institutional issuance 68.5 85.3 170.9 111.9 80.2 New money institutional issuance 42.3 44.4 64.3 73.3 49.8
Leveraged M&A loan issuance (ex. LBOs) 14.5 16.8 35.7 35.1 21.4 LBO loan issuance 36.3 29.9 41.3 56.5 31.3 Sponsored loan issuance 59.6 87.8 157.8 133.3 80.3 Dividend recap issuance 7.7 9 6 5.0 8.1 Second-lien issuance 2.6 1 2 4.5 1.6 Reverse Yankee issuance 6.1 11.5 24.8 26.0 9.8
CLO issuance - new 13.8 16.8 20.1 27.2 0.0 CLO issuance - refinancing - 2.2 11.4 3.4 0.0 CLO issuance - resets - 1 13.4 9.9 0.0
2015 2016 2017 2018 2019 YTD
Avg. pro rata margin 330bps 340bps 315bps 262bps 286bps Avg. institutional loan margin – first liens 429bps 414bps 346bps 369bps 395bps
1Q19 2Q19 3Q19 2019 YTD
Credit Suisse Leveraged Loan Index 2.01% 0.98% 1.05% 4.19%
*Subject to further updates as more data is collected
Source: Debtwire Par 9 An Acuris Company
3Q19
Leveraged loan issuance overview European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan vs. high-yield bond issuance - Annual
300 Leveraged loans
250 HY bonds EUR bils. EUR 200
150 281.8
100 202.5 151.0 146.6 122.0 106.0 107.0 114.0 50 86.0 78.0 71.2 63.6 0 2014 2015 2016 2017 2018 2019 YTD
Leveraged loan vs. high-yield bond issuance - Quarterly
90 Leveraged loans 80 HY bonds
70 EUR bils. EUR 60 50 40 81.0 72.8 30 64.2 63.8 59.4 53.1 55.0 48.3 47.8 49.8 47.7 20 43.7 39.4 39.5 39.4 40.3 35.2 33.5 33.131.3 29.3 29.5 33.229.5 28.6 31.1 24.425.4 26.6 22.2 25.5 26.9 10 18.220.7 20.6 19.4 16.8 21.1 18.8 8.9 13.49 8.2 8.6 9.1 10.9 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 11 European Leveraged Insights – 3Q19 An Acuris Company
Share of leveraged loan / HY bond issuance
Leveraged loans High yield bonds Institutional leveraged loans High yield bonds
100 100
90 90
80 80 Share of issuance (%) of issuance Share Share of issuance (%) of issuance Share 43 47 50 54 58 56 70 70 60 61 64 71 70 74 60 60
50 50
40 40
30 30 57 53 50 46 42 44 20 20 40 39 36 29 30 26 10 10
0 0 2014 2015 2016 2017 2018 2019 YTD 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 12 European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan issuance - Annual
300.0
250.0 EUR bils. EUR 200.0
150.0 281.8
100.0 202.5 150.5 146.6 122.3 50.0 106.5
0.0 2014 2015 2016 2017 2018 2019 YTD
Leveraged loan issuance -Quarterly
90 80
70 EUR bils. EUR 60 50 40 81.0 72.8 30 64.2 63.8 55.0 59.4 58.3 48.3 47.8 47.7 20 43.7 39.4 39.5 40.3 40.6 33.5 33.1 29.5 33.2 10 24.4 20.7 20.6 13.4 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 13 European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan issuance – Annual – Pro rata vs. Institutional
300.0 Institutional Pro Rata / Non Inst.
250.0 EUR bils. EUR
200.0 170.9
150.0 111.9
100.0 85.3 80.2 80.3 68.5 110.9 50.0 90.6 65.2 66.4 42.0 38.0 0.0 2014 2015 2016 2017 2018 2019 YTD
Leveraged loan issuance – Quarterly – Pro rata vs. Institutional
90.0 Institutional Pro Rata / Non Inst. 80.0
70.0 EUR bils. EUR 60.0 51.2 50.0 42.3 33.2 28.8 29.3 40.0 44.2 31.1 27.0 30.0 34.6 17.8 32.5 29.7 25.1 21.5 25.0 20.8 18.4 11.5 17.6 20.0 15.4 29.8 30.4 31.0 30.7 14.4 14.4 23.9 28.6 10.0 18.0 18.0 19.7 20.8 22.6 14.0 12.6 14.7 14.4 10.7 15.5 13.6 15.2 15.2 9.1 6.3 6.2 0.0 2.7 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 14 European Leveraged Insights – 3Q19 An Acuris Company
Pro rata / institutional share of leveraged loan issuance
Pro rata / Non Inst. Institutional term loans 100
90
34 36 80 39
Share of issuance (%) of issuance Share 43 45 45
70
60
50
40
66 64 30 61 57 55 55
20
10
0 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 15 European Leveraged Insights – 3Q19 An Acuris Company
Revolving credits issuance
60.0 30%
Issuance EUR bils. EUR Share of overall leveraged loan issuance 50.0 24% 25%
22% 21%
19%
40.0 19% 20% Share of leveraged loan issuance (%)issuance loan of leveraged Share 16%
30.0 15% 54.0
42.7 20.0 10%
33.8 35.3
22.7 10.0 5% 16.6
0.0 0% 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 16 European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan issuance – Annual – New money vs. refinancings
300 Refinancings 56% 55% 60% 51% 250 New Money 50% Refinancing share 43% 41% 200 38% 153.8 40%
(EUR bils.) (EUR 86.7 150 30% 77.4 60.7 100 68.1 40.5 20% share Refinancing 128.1 115.9 50 10% 73.1 84.8 54.3 66.1 0 0% 2014 2015 2016 2017 2018 2019 YTD
Leveraged loan issuance – Quarterly – New money vs. refinancings
90 80% Refinancings 80 New Money 70% 70 Refinancing share 60% 60 47.5 50% 38.0 (EUR bils.) (EUR 50 24.8 28.8 27.2 40% 40 43.5 11.5 21.5 19.7 28.2 13.7 30% 30 27.5 20.5 24.9 14.5 12.5 13.6 23.5 share Refinancing 12.1 20% 20 39.4 9.0 5.3 33.5 34.8 33.5 36.3 17.1 30.6 26.8 30.4 27.5 10 20.6 2.1 10% 16.3 19.0 18.9 15.3 17.4 19.6 16.0 20.0 20.3 15.4 7.3 11.7 11.3 0 0% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 17 European Leveraged Insights – 3Q19 An Acuris Company
New money / refinancings share of leveraged loan issuance
Refinancings New Money 100
90
80 38
Share of issuance (%) of issuance Share 43 41 51 56 55 70
60
50
40
30 62 57 58 49 44 45 20
10
0 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 18 European Leveraged Insights – 3Q19 An Acuris Company
Institutional loan issuance - Annual
180.0
160.0
140.0 EUR bils. EUR 120.0
100.0 170.9 80.0
60.0 111.9 40.0 80.3 85.3 80.2 68.5 20.0
0.0 2014 2015 2016 2017 2018 2019 YTD
Institutional loan issuance -Quarterly
60
50 EUR bils. EUR 40
30 51.2 44.2 20 42.3 34.6 33.2 32.5 29.7 31.1 28.8 29.7 25.1 27.0 25.0 21.5 10 20.8 18.4 18.0 15.4 14.4 14.4 17.6 10.7 11.5 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 19 European Leveraged Insights – 3Q19 An Acuris Company
Institutional loan issuance – Annual - New money vs. refinancings
180 70% Refinancings 62% 160 New Money 60% 140 50% EUR bils. EUR Refinancing share 48% 50% 120 106.6 35% 38% 37% 100 40% 38.6 80 30% 29.3 60 39.8 40.9 26.2 20% share Refinancing 40 64.3 73.3 10% 20 40.5 42.3 44.4 49.8 0 0% 2014 2015 2016 2017 2018 2019 YTD
Institutional loan issuance – Quarterly - New money vs. refinancings
60 80% Refinancings 70% 50 New Money
EUR bils. EUR Refinancing share 60% 40 50% 36.4 30 40% 27.5 11.9 30.8 20.0 10.2 2.6 14.7 11.4 10.8 30% 20 16.7 7.9 15.6 14.3 share Refinancing 6.0 11.1 3.8 20% 2.8 8.2 24.4 8.9 6.3 1.6 21.3 20.9 10 1.9 17.3 18.2 17.4 14.6 14.8 14.8 13.4 14.2 10% 13.0 13.0 12.4 11.6 10.0 10.4 10.7 6.5 8.1 9.5 8.8 9.4 0 0% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 20 European Leveraged Insights – 3Q19 An Acuris Company
New money / refinancings share of institutional loan issuance
Refinancings New Money 100
90
35
80 38 37 Share of issuance (%) of issuance Share 50 48 70 62
60
50
40
65 30 62 62 50 52 20 38
10
0 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 21 European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan issuance – Use of proceeds – 2019 to date
45.00
40.00
EUR bils. EUR 35.00
30.00
25.00
20.00 40.3
15.00 31.1
21.4 10.00 17.9
5.00 10.0 8.1 5.6 4.6 1.8 1.4 0.00 Refinancing LBO Acquisition Repricing General Dividend Refinancing Restructuring Recap. Debt Repay Loan Corporate Recap Bond
Source: Debtwire Par 22 European Leveraged Insights – 3Q19 An Acuris Company
Institutional loan issuance – Use of proceeds – 2019 to date
30.00 EUR bils. EUR
25.00
20.00
15.00
24.5
10.00 17.6
13.0 5.00 10.2 7.6
1.9 1.5 1.2 0.8 0.00 0.6 LBO Refinancing Acquisition Repricing Dividend Refinancing Recap. Debt Repay General Minority Loan Recap Bond Corporate equity stake acquisition
Source: Debtwire Par 23 European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan issuance by rating*
40
2017 2018 35
2019 YTD Share of issuance (%) of issuance Share 30
25
20
15
10
5
0 >=BB+ BB BB- B+ B B- <=CCC+
*Based on universe of loans that are rated. Where split rated, higher rating is used. Only Moody’s and S&P ratings are considered . **BB+ rating category volume is driven by EUR 6.3bn Fiat Chrysler Automobile RCF.
Source: Debtwire Par 24 European Leveraged Insights – 3Q19 An Acuris Company
Institutional loan issuance by rating*
50
45
2017
40 2018 Share of issuance (%) of issuance Share 2019 YTD 35
30
25
20
15
10
5
0 >=BB+ BB BB- B+ B B- <=CCC+
*Based on universe of loans that are rated. Where split rated, higher rating is used. Only Moody’s and S&P ratings are considered.
Source: Debtwire Par 25 European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan issuance by rating*
45% 2018-3Q
40% 2018-4Q
2019-1Q Share of of issuance Share 35% 2019-2Q
2019-3Q
30%
25%
20%
15%
10%
5%
0% >=BB+ BB BB- B+ B B- CCC+
*Based on universe of loans that are rated. Where split rated, higher rating is used. Only Moody’s and S&P ratings are considered.
Source: Debtwire Par 26 European Leveraged Insights – 3Q19 An Acuris Company
Institutional loan issuance by rating*
60%
3Q18 4Q18
50% 1Q19 Share of of issuance Share 2Q19 3Q19
40%
30%
20%
10%
0% >=BB+ BB BB- B+ B B- CCC+
*Based on universe of loans that are rated. Where split rated, higher rating is used. Only Moody’s and S&P ratings are considered.
Source: Debtwire Par 27 European Leveraged Insights – 3Q19 An Acuris Company
Largest leveraged loans issued YTD
Close Amount Borrower No. Borrower Name Borrower Sector Use Of Proceeds Sponsor Date EUR Country Johnson Controls (Power Brookfield Business Partners LP, Caisse de 1 Industrial: Electronics LBO 6.9 USA Solutions business) 30-Apr-19 Depot et Placement du Quebec 2 Fiat Chrysler Automobiles Automotive Refinancing Loan 27-Mar-19 6.3 United Kingdom -
3 Berry Global Inc Manufacturing (other) Acquisition 01-Jul-19 5.1 USA -
4 Nestle Skin Health S.A. Medical: Pharmaceuticals LBO 18-Jul-19 4.9 Switzerland EQT Partners, Abu Dhabi Investment
5 Aker BP ASA (Aker BP) Energy Refinancing Loan 23-May-19 3.6 Norway - International Game 6 Leisure Repricing 3.1 United Kingdom - Technology PLC 29-Jul-19 7 Chrysaor Energy General Corporate 26-Jun-19 2.7 United Kingdom - Partners, Caisse de Depot et Placement du 8 Techem Utilities (other) Repricing 2.3 Germany 22-Jul-19 Quebec, Ontaio Teachers Pension Plan Temasek, Hopu Investment Management, 9 Ceva Sante Animale Biotechnology Dividend Recap 2.2 France 29-Mar-19 Merieux, CDH Investments, Sagard 10 Ahlsell AB Services (other) LBO 01-Mar-19 2.1 Sweden CVC Partners Clayton, Dubilier & Rice LLC, CVC Capital 11 Univar Inc Chemicals and materials Acquisition 2.1 USA 28-Feb-19 Partners 12 ANTA Sports Products Ltd Consumer: Retail Acquisition 01-Mar-19 2.0 Finland -
13 Verallia SA Manufacturing (other) General Corporate 17-Jul-19 2.0 France -
14 Informatica Corp Computer software General Corporate 17-Apr-19 1.9 USA - Eroski Sociedad Cooperativa 15 Consumer: Retail Restructuring 1.9 Spain - Limitada De Consumo 17-Jul-19 16 Naturgy Energy Repricing 20-Jun-19 1.9 Spain CVC Capital Partners
17 Fred Olsen Energy ASA Energy Restructuring 12-Apr-19 1.8 Norway Strategic Value Partners Triton Partners, Abu Dhabi Investment 18 IFCO Systems NV Manufacturing (other) LBO 1.8 Germany 04-Apr-19 Authority Evonik Industries AG 19 Chemicals and materials LBO 1.8 Germany Advent International (Methacrylates Verbund) 21-Jun-19 20 IQVIA Holdings Inc Medical Repricing 09-Aug-19 1.7 USA -
*Based on transactions where at least a portion of the deal was syndicated in Europe
Source: Debtwire Par 28 European Leveraged Insights – 3Q19 An Acuris Company
M&A (ex. LBOs) leveraged loan issuance - Annual
40.0
35.0
EUR bils. EUR 30.0
25.0
20.0 35.7 35.1 15.0
10.0 21.4 17.1 16.8 14.5 5.0
0.0 2014 2015 2016 2017 2018 2019 YTD
M&A (ex. LBOs) leveraged loan issuance - Quarterly
16.0
14.0
EUR bils. EUR 12.0
10.0
8.0 14.3 6.0 12.9 10.9 10.6 4.0 8.7 8.6 8.7 5.8 6.3 5.1 5.6 5.1 4.9 4.9 2.0 3.8 3.9 4.2 4.5 3.3 2.9 2.5 1.2 1.7 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 29 European Leveraged Insights – 3Q19 An Acuris Company
LBO loan issuance - Annual
60.0
50.0 EUR bils. EUR 40.0
30.0 56.5
20.0 41.3 36.3 29.9 31.3 24.4 10.0
0.0 2014 2015 2016 2017 2018 2019 YTD
LBO loan issuance - Quarterly
25.0
20.0 EUR bils. EUR
15.0
10.0 19.4 16.7 14.9 12.7 13 11.7 12.1 11.1 5.0 10.2 9.4 10.0 8.1 9.0 8.8 7.9 8.2 6.3 6.4 7.2 4.8 4.7 5.8 0.0 1.3 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 30 European Leveraged Insights – 3Q19 An Acuris Company
Sponsored loan issuance - Annual
180.0
160.0
140.0 EUR bils. EUR 120.0
100.0
80.0 157.8 133.3 60.0
40.0 87.8 80.3 59.6 20.0 41.3
0.0 2014 2015 2016 2017 2018 2019 YTD
Sponsored loan issuance - Quarterly
50.0 45.0
40.0 EUR bils. EUR 35.0 30.0 25.0 46.3 20.0 40.0 35.3 36.2 35.3 33.7 32.8 31.5 30.8 15.0 28.0 24.9 24.5 10.0 19.8 21.6 21.3 17.2 16.9 15.9 13.8 5.0 12.2 10.1 6.5 5.5 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 31 European Leveraged Insights – 3Q19 An Acuris Company
Second-lien loan issuance - Annual
6.0
5.0 EUR bils. EUR 4.0
3.0 5.0 4.5 2.0
2.6 1.0 2.0 1.6 1.0 0.0 2014 2015 2016 2017 2018 2019 YTD
Second-lien loan issuance - Quarterly
2.5
2.0 EUR bils. EUR
1.5
2.4 1.0
1.4 1.5 1.1 1.1 0.5 1.0 1.0 0.9 0.8 0.6 0.8 0.5 0.4 0.5 0.5 0.5 0.3 0.3 0.3 0.3 0.3 0.2 0.0 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 32 European Leveraged Insights – 3Q19 An Acuris Company
Reverse Yankee leveraged loan issuance - Annual
30.0
25.0 EUR bils. EUR 20.0
15.0 24.8 26 10.0
11.5 5.0 9.8 6.1 3.9 0.0 2014 2015 2016 2017 2018 2019 YTD
Reverse Yankee leveraged loan issuance - Quarterly
12.0
10.0 EUR bils. EUR 8.0
6.0 9.8 8.6 4.0 7.5 6.4 5.0 5.4 4.6 4.4 2.0 3.7 3.9 4.2 2.5 1.9 2.3 1.7 0.0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 33 European Leveraged Insights – 3Q19 An Acuris Company
Covenant-lite share of institutional loans
100%
90%
Share of of loans Share 80%
70%
60%
50% 92% 88% 84% 40% 77% 76% 77%
30% 52%
20%
27% 10%
0% 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2019 YTD
Source: Xtract Research 34 An Acuris Company
3Q19
Leveraged loan pricing European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan pricing
500 Pro rata* Institutional
450
400 Weighted Margin (bps) Margin Weighted
350
300
250
442 421 200 412 407 381 341 347 318 330 318 150 286 250 100
50
- 2014 2015 2016 2017 2018 2019 YTD
*Excludes GBP 400m Debenhams & New Look GBP 80m and 100m facilities, all issued as part of a restructuring transaction
Source: Debtwire Par 36 European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan pricing
600 Pro rata* Institutional
500 Weighted Margin (bps) Margin Weighted
400
300
523 483 455 453 454 436 432 414 427 418418 413 416 200 401 401 392 407 374 377 377 380 357 367 361 356 370 367 366 335 338 345 348 322 316 298 298 313 289 281 260 269 274 254 241 100 214
0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
*Excludes GBP 400m Debenhams & New Look GBP 80m and 100m facilities, all issued as part of a restructuring transaction
Source: Debtwire Par 37 European Leveraged Insights – 3Q19 An Acuris Company
Institutional loan pricing – First liens
500
450
400 Weighted Margin (bps) Margin Weighted
350
300
250
429 414 200 389 395 369 346 150
100
50
- 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 38 European Leveraged Insights – 3Q19 An Acuris Company
Pro Rata loan pricing – First liens (LBOs only)
450
400
350 Weighted Margin (bps) Margin Weighted
300
250
426 419 200 405 410 391 385 367 367 357 330 317 305 304 150 293 301
100
50
0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
*All currencies
*Excludes GBP 400m Debenhams & New Look GBP 80m and 100m facilities, all issued as part of a restructuring transaction
Source: Debtwire Par 39 European Leveraged Insights – 3Q19 An Acuris Company
Institutional loan pricing – First liens
600 7.0%
6.0%
500 Weighted Yield* Yield* (%)Weighted
Weighted Margin (bps) Margin Weighted 5.0% 400
4.0%
300
508 3.0%
466 454 435 432 427 411 418 200 398 406 401 400 383 366 370 367 376 355 352 357 337 348 2.0% 322
100 1.0%
- 0.0%
3Q16 2Q19 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 3Q19
4Q14 4Q15 4Q16 4Q17 4Q18 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 1Q16 2Q16 3Q16 1Q17 2Q17 3Q17 1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 *Yield to 3 years
*All currencies ** Euro facilities only
Source: Debtwire Par 40 European Leveraged Insights – 3Q19 An Acuris Company
Institutional loan pricing – First liens – M&A
600 7.0%
6.0%
500 Weighted Yield* Yield* (%)Weighted 5.0%
400 Weighted Average Margin (bps)Margin Average Weighted
4.0%
300
3.0% 509499 474 473 459 425 414 409 409 408 402 200 399 388 399 383 376 384 362 365 372 372 360 2.0% 325
100 1.0%
0 0.0%
3Q16 2Q19 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 3Q19
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
4Q14 4Q16 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 *Yield to 3 years
*All currencies ** Euro facilities only
Source: Debtwire Par 41 European Leveraged Insights – 3Q19 An Acuris Company
Institutional loan pricing – First liens (LBOs only)
600 7.0%
6.0%
500 Weighted Yield* Yield* (%)Weighted 5.0%
400 Weighted Average Margin (bps)Margin Average Weighted
4.0%
300
516 502 3.0% 483 473 484 454 453 462 423 430 410411 408 418411 200 398 395 407402 380 371 364374 2.0%
100 1.0%
0 0.0%
3Q16 2Q19 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 3Q19
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
4Q14 4Q16 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 *Yield to 3 years *All currencies *All currencies ** Euro facilities only
Source: Debtwire Par 42 European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan pricing – Distribution of margins
30%
Pro rata* Institutional (1st and 2nd lien)
25% Share of issuance (%) of issuance Share
20%
15% 27%
21% 10% 19% 16% 14% 11% 11% 5% 10% 8% 7% 7% 7% 6% 6% 5% 5% 4% 3% 3% 3% 3% 0% 0% 1% 2% 0% 1% 0% 0% 1% 0% 0% 0%
Margin (bps) *Excludes GBP 400m Debenhams & New Look GBP 80m and 100m facilities, all issued as part of a restructuring transaction. **Includes EUR 1.35bn Smurfit Kappa revolving credit facility ***Includes EUR 1bn Eroski Sociedad Cooperativa Limitada De Consumo revolving credit facility
Source: Debtwire Par 43 European Leveraged Insights – 3Q19 An Acuris Company
Institutional first-lien term loan pricing by rating*
500 300 Difference BB 475 463 275 B 450 250
Weighted Margin Margin (bps) Weighted 425 415 413 225 Average Difference (bps) Average Difference 403 399 400 200
375 175 356 349 351 350 150 332 323 326 325 125
300 100 285
275 75
115 250 50 83 87 71 76 225 52 25
200 - 2014 2015 2016 2017 2018 2019 YTD
*Based on universe of loans that are rated. Where split rated, higher rating is used. Only Moody’s and S&P ratings are considered.
Source: Debtwire Par 44 European Leveraged Insights – 3Q19 An Acuris Company
Institutional loan pricing – Distribution of margins YOY
20% 2018 YTD 2019 YTD 18%
16%
14%
lien lien institutional loans term -
12%
10% Shareof first
8%
6%
4%
2%
0% <325 325 350 375 400 425 450 475 >=500
Margin (bps)
Source: Debtwire Par 45 European Leveraged Insights – 3Q19 An Acuris Company
Original issue discounts (OIDs)*
70%
2015
2016 60%
Share of of issuance Share 2017
2018 50% 2019 YTD
40%
30%
20%
10%
0% <98 98 to <99 99 to <99.25 99.25 to <99.50 99.50 to <99.75 99.75 to <100 >=100 Price / OID
*Based on universe of deals where OID data available
Source: Debtwire Par 46 European Leveraged Insights – 3Q19 An Acuris Company
Benchmark floors on institutional term loans*
100%
90%
Share of of issuance Share 80%
70%
60%
50%
40%
30%
20%
10%
0% 2014 2015 2016 2017 2018 2019 YTD
1% floor 0.75% floor 0.50% floor 0% floor
*Based on universe of deals where benchmark floors present and the base rate is EURIBOR
Source: Debtwire Par 47 European Leveraged Insights – 3Q19 An Acuris Company
Institutional loan flex activity
40 80.00
Number of flexes down Number of flexes up Average flex up Average flex down
30 60.00
Avg. margin flex (bps) margin flex Avg. Number of margin margin flexes of Number 20 40.00
10 20.00
0 0.00
-10 -20.00
-20 -40.00
-30 -60.00 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 48 An Acuris Company
3Q19
Leveraged loan stats by industry European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan issuance by industry
Amount iss. Share of iss. New money iss. Share of new money iss. Industry No. of deals Share of deals (%) (EURbn) (%) (EURbn) (%) Services (other) 16.60 59 11.32% 14.46% 14.38 16.96% Energy 12.89 16 8.79% 3.92% 6.26 7.39% Medical 12.88 29 8.79% 7.11% 6.45 7.61% Leisure 10.95 19 7.47% 4.66% 5.60 6.61% Chemicals and materials 8.96 24 6.11% 5.88% 5.06 5.96% Industrial products and services 8.67 38 5.92% 9.31% 4.93 5.82% Automotive 7.83 10 5.34% 2.45% 0.30 0.35% Consumer: Retail 7.82 17 5.33% 4.17% 6.75 7.96% Telecommunications: Carriers 7.80 11 5.32% 2.70% 3.37 3.97% Construction 7.80 21 5.32% 5.15% 2.26 2.66% Manufacturing (other) 7.74 19 5.28% 4.66% 5.15 6.08% Financial Services 5.00 16 3.41% 3.92% 4.52 5.33% Consumer: Foods 3.85 21 2.63% 5.15% 2.95 3.48% Transportation 3.61 9 2.46% 2.21% 1.54 1.81% Medical: Pharmaceuticals 2.96 10 2.02% 2.45% 2.40 2.83% Computer software 2.88 19 1.97% 4.66% 1.92 2.26% Telecommunications: Hardware 2.47 9 1.69% 2.21% 0.08 0.09% Utilities (other) 2.45 2 1.67% 0.49% 0.11 0.13% Industrial: Electronics 2.37 5 1.62% 1.23% 2.14 2.52% Consumer: Other 2.36 11 1.61% 2.70% 2.15 2.54% Biotechnology 2.15 1 1.47% 0.25% 2.15 2.54% Internet / ecommerce 2.05 7 1.40% 1.72% 1.40 1.65% Media 1.68 10 1.14% 2.45% 0.76 0.90% Computer services 1.18 10 0.81% 2.45% 1.18 1.40% Real Estate 0.67 7 0.46% 1.72% 0.27 0.31% Industrial automation 0.39 5 0.27% 1.23% 0.36 0.42% Computer: Hardware 0.33 1 0.23% 0.25% 0.33 0.39% Computer: Semiconductors 0.20 1 0.14% 0.25% - - Agriculture 0.02 1 0.01% 0.25% 0.02 0.02%
Source: Debtwire Par 50 European Leveraged Insights – 3Q19 An Acuris Company
Institutional loan issuance by industry
Industry Amount iss. (EURbn) Share of iss. (%) New money iss. (EURbn) Share of new money iss. (%)
Services (other) 12.57 15.81% 10.77 0.48% Medical 10.00 12.57% 4.77 0.79% Leisure 8.07 10.15% 4.67 1.23% Telecommunications: Carriers 6.19 7.78% 2.35 21.86% Chemicals and materials 5.02 6.31% 2.64 4.06% Industrial products and services 4.34 5.46% 2.57 0.59% Construction 4.29 5.39% 1.32 0.67% Manufacturing (other) 3.65 4.58% 2.91 9.49% Consumer: Retail 3.22 4.05% 3.16 0.19% Computer software 2.69 3.38% 1.73 1.69% Utilities (other) 2.45 3.08% 0.11 2.66% Medical: Pharmaceuticals 2.16 2.72% 1.75 9.68% Transportation 2.16 2.72% 1.31 0.06% Industrial: Electronics 2.09 2.63% 2.00 5.23% Biotechnology 2.00 2.51% 2.00 0.37% Consumer: Foods 1.31 1.65% 1.31 2.68% Media 1.10 1.39% 0.39 5.91% Financial Services 1.09 1.37% 0.90 6.41% Computer services 0.83 1.05% 0.83 5.36% Automotive 0.78 0.98% 0.18 - Energy 0.70 0.88% - - Internet / ecommerce 0.63 0.79% 0.61 4.05% Real Estate 0.56 0.70% 0.24 3.54% Telecommunications: Hardware 0.56 0.70% 0.03 4.77% Computer: Hardware 0.33 0.41% 0.33 3.51% Industrial automation 0.29 0.37% 0.29 1.82% Consumer: Other 0.25 0.31% 0.10 2.66% Computer: Semiconductors 0.20 0.25% - -
Source: Debtwire Par 51 European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan issuance by industry Pro rata vs. institutional
18.0
Pro Rata/Non Inst. EUR bils. EUR 16.0 Institutional 4.0 14.0
12.0 2.9
10.0 2.9
8.0
12.2 3.9 1.5 4.1 6.0 12.6 3.5 4.1 4.4 10.0 7.1 4.0 8.1 6.2 3.9 0.2 5.0 2.5 0.8 4.3 4.3 2.0 3.7 3.2 1.9 2.2 2.7 2.1 1.3 0.7 0.8 1.1
0.0 0.6 0.3
Energy
Leisure
Medical
Automotive
Construction
Carriers
services
Services (other) Services
Hardware
Consumer: Retail Consumer:
Consumer: Other Consumer:
Consumer: Foods Consumer:
Financial Services Financial
Computer software Computer
Telecommunications: Telecommunications:
Manufacturing (other) Manufacturing
Industrial products and products Industrial
Chemicals and materials and Chemicals Medical: Pharmaceuticals Medical:
Source: Debtwire Par 52 European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan issuance by industry New money vs. refinancing
18.0 Refinancings
EUR bils. EUR New money 16.0 2.2
14.0
12.0
10.0 6.6 6.4
8.0 5.4 14.4 1.1 3.7 2.9 2.6 6.0 4.4 5.5 0.5 4.0 7.5 6.3 6.5 6.7 0.9 5.6 5.1 4.9 5.2 2.1 0.4 1.0 2.0 4.5 0.2 3.4 3.0 2.3 2.4 2.4 2.3 2.1 1.5 1.9
0.0 0.3 0.1 0.1
Energy
Leisure
Medical
Automotive
Construction
Carriers
Transportation
Utilities (other) Utilities
services
Services (other) Services
Hardware
Consumer: Retail Consumer:
Consumer: Foods Consumer:
Financial Services Financial
Computer software Computer
Telecommunications: Telecommunications:
Industrial: Electronics Industrial:
Manufacturing (other) Manufacturing
Industrial products and products Industrial
Chemicals and materials and Chemicals Medical: Pharmaceuticals Medical:
Source: Debtwire Par 53 European Leveraged Insights – 3Q19 An Acuris Company
Industrial products and services sector – Annual issuance
20.0 18.0
16.0 EUR bils. EUR 14.0 12.0 10.0 18.1 8.0 14.1 6.0 11.6 11.2 4.0 8.7 2.0 4.2 0.0 2014 2015 2016 2017 2018 2019 YTD
Industrial products and services sector – Quarterly issuance
7.0
6.0
EUR bils. EUR 5.0
4.0
3.0 6.3 5.7 5.6 4.6 4.6 2.0 3.7 3.7 3.9 3.3 3.3 3.5 3.3 2.8 1.0 2.3 1.9 1.8 1.5 1.8 1.3 1.0 0.6 0.4 0.7 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 54 European Leveraged Insights – 3Q19 An Acuris Company
Medical sector – Annual issuance
18.0
16.0
14.0 EUR bils. EUR 12.0
10.0
8.0 15.6 6.0 13 12.9
4.0 7.3 5.3 2.0 3.7 0.0 2014 2015 2016 2017 2018 2019 YTD
Medical sector – Quarterly issuance
6.0
5.0 EUR bils. EUR 4.0
3.0 5.6 5.0 5.2 4.5 4.2 2.0 3.8 3.4 3.6 3.5 3.5 2.6 2.2 2.1 1.0 1.7 1.3 1.4 0.9 1.0 1.2 0.6 0.4 0.0 0.1 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 55 European Leveraged Insights – 3Q19 An Acuris Company
Telecommunications carriers sector – Annual issuance
14.0
12.0 EUR bils. EUR 10.0
8.0
6.0 12.1 12.6 12.4
4.0 8.0 7.8 5.6 2.0
0.0 2014 2015 2016 2017 2018 2019 YTD
Telecommunications carriers sector – Quarterly issuance
8.0
7.0
EUR bils. EUR 6.0
5.0
4.0 7.2 3.0 6.1 5.3 4.7 5.0 2.0 4.3 4.0 3.3 2.8 2.6 2.5 1.0 1.5 1.0 1.2 1.1 1.2 1.3 1.2 0.5 0.9 0.0 0.0 0.3 0.4 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 56 European Leveraged Insights – 3Q19 An Acuris Company
Chemicals and materials sector – Annual issuance
25.0
20.0 EUR bils. EUR
15.0
23.5 10.0
11.7 5.0 11.5 7.9 9 5.7
0.0 2014 2015 2016 2017 2018 2019 YTD
Chemicals and materials sector – Quarterly issuance
8.0
7.0
EUR bils. EUR 6.0
5.0
4.0 7.1 3.0 6.1 6.4 6.2 5.3 4.5 2.0 3.8 3.2 3.0 3.3 2.5 2.3 1.0 1.7 1.7 1.8 1.9 1.8 1.3 1.4 1.7 1.7 0.6 0.0 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 57 European Leveraged Insights – 3Q19 An Acuris Company
Media sector – Annual issuance
16.0
14.0
EUR bils. EUR 12.0
10.0
8.0 13.3 14.1 6.0 10 4.0 5.8 2.0 4.3 1.7 0.0 2014 2015 2016 2017 2018 2019 YTD
Media sector – Quarterly issuance
6.0
5.0 EUR bils. EUR 4.0
3.0 5.4 5.2 4.6 4.6 4.7 2.0 3.7 3.9 3.2 2.7 2.5 2.3 1.0 1.9 1.1 0.3 0.9 0.4 0.5 0.4 0.4 0.5 0.0 0.3 0.0 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 58 European Leveraged Insights – 3Q19 An Acuris Company
Consumer retail sector – Annual issuance
16.0
14.0
EUR bils. EUR 12.0
10.0
8.0 14.6 6.0 11.2 9.7 4.0 7.8 5.5 6.3 2.0
0.0 2014 2015 2016 2017 2018 2019 YTD
Consumer retail– Quarterly issuance
8.0
7.0
EUR bils. EUR 6.0
5.0
4.0 7.2 3.0 6.1 5.6 5.0 4.4 2.0 3.8 3 3.2 2.5 2.7 1.0 2.0 1.5 1.5 1.4 1.0 1.4 1.0 0.6 0.0 0.8 0.0 0.0 0.0 0.5 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 59 European Leveraged Insights – 3Q19 An Acuris Company
Automotive sector – Annual issuance
18.0
16.0
14.0 EUR bils. EUR 12.0
10.0
8.0 16.2
6.0 11.0 9.0 4.0 7.8 6.1 2.0 1.4 0.0 2014 2015 2016 2017 2018 2019 YTD
Automotive sector – Quarterly issuance
8.0
7.0
EUR bils. EUR 6.0
5.0
4.0 7.2 6.6 6.5 3.0 5.8 5.9 2.0 3.5 2.7 1.0 2.3 2.0 1.4 0.8 0.7 0.9 0.8 0.8 1.0 1.1 0.2 0.0 0.0 0.4 0.0 0.3 0.4 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 60 European Leveraged Insights – 3Q19 An Acuris Company
Industrial products and services sector – Pricing on institutional loans
500
450
400 WeightedMargin (bps) 350
300
250 457 433 200 393 396 380 391
150
100
50
0 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 61 European Leveraged Insights – 3Q19 An Acuris Company
Medical sector – Pricing on institutional loans
500
450
400 Weighted Margin (bps) Margin Weighted
350
300
250
454 449 422 200 405
349 324 150
100
50
- 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 62 European Leveraged Insights – 3Q19 An Acuris Company
Chemicals and materials sector– Pricing on institutional loans
500
450
400 WeightedMargin (bps) 350
300
250
445 444 422 200 381 364
150 303
100
50
- 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 63 European Leveraged Insights – 3Q19 An Acuris Company
Consumer retail sector – Pricing on institutional loans
600
500 Weighted Margin (bps) Margin Weighted
400
300
520
455 462 424 200 371 372
100
- 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 64 An Acuris Company
3Q19
Leveraged loan stats by country of syndication European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan issuance by country of syndication
Country Amount iss. (EURbn) No. of deals Share of iss. (%) Share of deals (%) New money iss. (EURbn) Share of new money iss. (%)
United Kingdom 34.62 87 24% 21% 18.49 22% France 29.01 127 20% 31% 20.74 24% Germany 17.40 46 12% 11% 5.79 7% Spain 17.05 37 12% 9% 11.01 13% Italy 10.87 36 7% 9% 4.35 5% Netherlands 7.28 19 5% 5% 5.60 7% Norway 6.58 9 4% 2% 4.11 5% Sweden 5.74 8 4% 2% 3.89 5% Ireland (Republic) 5.21 6 4% 1% 0.40 0% Switzerland 4.08 6 3% 1% 2.91 3% Belgium 2.92 14 2% 3% 2.84 3% Finland 2.52 3 2% 1% 2.12 2% Malta 1.80 2 1% 0% 1.80 2% Denmark 0.75 6 1% 1% 0.75 1% Luxembourg 0.74 2 1% 0% - - Monaco 0.00 1 0% 0% 0.00 0%
Source: Debtwire Par 66 European Leveraged Insights – 3Q19 An Acuris Company
Institutional loan issuance by country of syndication
Country Amount iss. (EURbn) Share of iss. (%) New money iss. (EURbn) Share of new money iss. (%)
United Kingdom 22.12 28% 11.55 23% France 18.20 23% 13.97 28% Germany 11.39 14% 3.94 8% Spain 7.37 9% 6.58 13% Ireland (Republic) 3.86 5% 0.40 1% Sweden 3.35 4% 2.20 4% Netherlands 2.84 4% 1.62 3% Switzerland 2.74 3% 1.89 4% Belgium 1.93 2% 1.90 4% Malta 1.75 2% 1.75 4% Finland 1.70 2% 1.70 3% Norway 1.06 1% 1.06 2% Luxembourg 0.53 1% - - Denmark 0.42 1% 0.42 1% Italy 0.28 0% 0.28 1%
Source: Debtwire Par 67 European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan issuance by country Pro rata vs. institutional
40.0 Pro rata / Non. Inst Institutional EUR bils. EUR 35.0
30.0 11.9
25.0 10.8
20.0
15.0 6.0 9.7 22.1 10.0 18.2
11.4 10.6 5.0 4.4 2.4 1.4 7.4 5.5 1.3 1.0 3.4 3.9 0.8 0.0 2.8 2.7 1.9 1.7 1.8
0.0 0.3 1.1
Italy
Spain
Malta
France
Finland
Sweden
Norway
Belgium
Germany
Switzerland
Netherlands
United Kingdom United Ireland (Republic) Ireland
Source: Debtwire Par 68 European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan issuance by country New money vs. refinancing
40
Refinancings New Money
35 EUR bils. EUR 30
15.6 25 8.5
20
15 5.5 11.6 10 20.7 18.5 6.5 1.7 11.0 5 2.5 1.8 4.8 1.2 5.8 5.6 0.1 0 4.3 4.1 3.9 0.4 2.9 2.8 2.1 1.8
- 0.4
Italy
Spain
Malta
France
Finland
Sweden
Norway
Belgium
Germany
Switzerland
Netherlands
United Kingdom United Ireland (Republic) Ireland
Source: Debtwire Par 69 European Leveraged Insights – 3Q19 An Acuris Company
United Kingdom – Annual issuance
80.0
70.0
EUR bils. EUR 60.0
50.0
40.0 71.3 30.0 55.2 20.0 34.6 29.0 30.6 29.4 10.0
0.0 2014 2015 2016 2017 2018 2019 YTD
United Kingdom – Quarterly issuance
25.0
20.0 EUR bils. EUR
15.0
22.4 10.0 20.7 18.6 14.8 14.8 15.3 15.1 13.5 13.5 13.1 10.8 5.0 10.4 9.9 9.4 10.5 5.7 6.0 5.7 6.4 4.7 4.2 3.0 1.7 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 70 European Leveraged Insights – 3Q19 An Acuris Company
France – Annual issuance
70.0
60.0 EUR bils. EUR 50.0
40.0 65.2 30.0
20.0 40.8 28.7 29.0 10.0 21.9 14.9 0.0 2014 2015 2016 2017 2018 2019 YTD
France – Quarterly issuance
30.0
25.0 EUR bils. EUR 20.0
15.0 24.1 10.0 21.5
12.1 13.0 5.0 11.0 11.3 11.0 10.7 11.3 10.2 7.7 8.3 7.5 5.3 5.0 6.1 6.3 6.1 3.3 2.9 3.8 0.0 1.2 0.9 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 71 European Leveraged Insights – 3Q19 An Acuris Company
Netherlands – Annual issuance
30.0
25.0 EUR bils. EUR 20.0
15.0 25.3 10.0 19.0 19.3 16.0 5.0 7.28 5.2 0.0 2014 2015 2016 2017 2018 2019 YTD
Netherlands – Quarterly issuance
10.0 9.0
8.0 EUR bils. EUR 7.0 6.0 5.0 9.2 4.0 7.9 7.4 3.0 6.4 6.3 5.8 5.4 5.6 4.7 4.8 2.0 4.3 3.2 3.4 2.4 2.7 2.2 1.0 1.8 1.6 1.7 1.9 1.3 0.8 1.4 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 72 European Leveraged Insights – 3Q19 An Acuris Company
Germany – Annual issuance
45.0
40.0
35.0 EUR bils. EUR 30.0
25.0
20.0 42.0
15.0 28.1 10.0 21.0 19.9 20.6 17.4 5.0
0.0 2014 2015 2016 2017 2018 2019 YTD
Germany – Quarterly issuance
16.0
14.0
EUR bils. EUR 12.0
10.0
8.0 14.6 13.1 6.0 11.3 9.9 8.9 4.0 8.6 7.8 6.9 7.7 5.7 6.5 6.1 6.1 2.0 4.1 4.3 4.7 4.9 4.4 4.0 2.7 2.5 2.6 1.4 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 73 European Leveraged Insights – 3Q19 An Acuris Company
Spain – Annual issuance
18.0
16.0
14.0 EUR bils. EUR 12.0
10.0
8.0 16.1 17.05
6.0 12.9 12.2
4.0 7.6 2.0 1.4 0.0 2014 2015 2016 2017 2018 2019 YTD
Spain – Quarterly issuance
9.0 8.0
7.0 EUR bils. EUR 6.0 5.0 4.0 8.6 7.2 3.0 5.8 5.9 4.8 5.1 2.0 3.5 3.5 3.5 3.0 2.7 2.7 2.6 1.0 1.6 1.6 1.7 0.6 0.7 0.9 0.7 0.0 0.4 0.0 0.4 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 74 European Leveraged Insights – 3Q19 An Acuris Company
United Kingdom – Pricing on institutional loans
500
450
400 Weighted Margin (bps) Margin Weighted
350
300
250
444 424 419 200 397 381 344 150
100
50
0 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 75 European Leveraged Insights – 3Q19 An Acuris Company
France – Pricing on institutional loans
500
450
400 Weighted Margin (bps) Margin Weighted 350
300
250
436 410 415 409 200 393 361
150
100
50
- 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 76 European Leveraged Insights – 3Q19 An Acuris Company
Netherlands – Pricing on institutional loans
600
500 Weighted Margin (bps) Margin Weighted
400
300
488
419 414 200 398 361 338
100
- 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 77 European Leveraged Insights – 3Q19 An Acuris Company
Germany – Pricing on institutional loans
500
450
400 Weighted Margin (bps) Margin Weighted
350
300
250 455 452 416 409 200 385 352 150
100
50
- 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 78 European Leveraged Insights – 3Q19 An Acuris Company
Spain – Pricing on institutional loans
600
500 Weighted Margin Margin (bps) Weighted
400
300
503 504
411 200 389 403 357
100
- 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 79 An Acuris Company
3Q19
Credit statistics European Leveraged Insights – August 2019 An Acuris Company
Leverage ratios* - Semi Annual
7.0
1H17 2H17 1H18 2H18 1H19 2H19
6.0 5.4 5.5 5.5 5.5 5.4 5.1 5.2 5.1 5.1 5.1 5.0 5.0 4.6
4.0
3.0 Debt/Adjusted EBITDA (x:1)EBITDA Debt/Adjusted
2.0
1.0
0.0 Total Leverage Net Leverage
*Based on deals for which Debtwire collected leverage ratio data
Source: Debtwire Par
81 European Leveraged Insights – August 2019 An Acuris Company
Total Leverage*
6.0
5.0
4.0
3.0 5.7 5.6 5.4 5.5 5.4 5.4 5.6 5.4 5.2 5.3
4.9 Debt/Adjusted EBITDA (x:1)EBITDA Debt/Adjusted
2.0
1.0
0.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
*Based on deals for which Debtwire collected leverage ratio data
Source: Debtwire Par
82 European Leveraged Insights – August 2019 An Acuris Company
Net Leverage*
6.0
5.0
4.0
3.0
5.4 5.2 5.3 5.2 5.0 5.1
4.9 4.9 4.8 5.0 Debt/Adjusted EBITDA (x:1)EBITDA Debt/Adjusted 4.2 2.0
1.0
0.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
*Based on deals for which Debtwire collected leverage ratio data
Source: Debtwire Par
83 European Leveraged Insights – August 2019 An Acuris Company
Distribution of Total Leverage*
40%
2017 2018 1-3Q19 35%
30%
25%
20% 36% 37%
Share of deals (%) of deals Share 33% 15% 28%
24% 23% 10% 21% 21%
13% 13% 12% 5% 10% 10% 11% 9%
0% <4 4 to <5 5 to <6 6 to <7 >=7
Total Debt / Adjusted EBITDA Ratio
*Based on deals for which Debtwire collected leverage ratio data
Source: Debtwire Par
84 European Leveraged Insights – August 2019 An Acuris Company
Distribution of Net Leverage*
35% 2017 2018 1-3Q19
30%
25%
20%
32% 15% 30% 31%
29% 29% Share of deals (%) of deals Share 24% 21% 10% 20% 20% 18% 15% 16%
5%
4% 5% 5%
0% <4 4 to <5 5 to <6 6 to <7 >=7
Net Debt / Adjusted EBITDA Ratio
*Based on deals for which Debtwire collected leverage ratio data
Source: Debtwire Par
85 An Acuris Company
3Q19
Deals coming to market / Deals in market European Leveraged Insights – 3Q19 An Acuris Company
Leveraged loan pipeline
€30 b Institutional
EUR bils. EUR Prorata
€25 b
€20 b
€15 b
€10 b
€5 b
€0 b
5-Jan-18
1-Jun-18 9-Jun-17 7-Jun-19
1-Sep-17
7-Apr-17 5-Apr-19
5-Oct-18
3-Feb-17 1-Feb-19
7-Dec-18
3-Aug-18 9-Aug-19
3-Nov-17
9-Mar-18
21-Jul-17 13-Jul-18 19-Jul-19
13-Jan-17 26-Jan-18 11-Jan-19
30-Jun-17 25-Jun-18 28-Jun-19
22-Sep-17 14-Sep-18 20-Sep-19
28-Apr-17 20-Apr-18 26-Apr-19
26-Oct-18 13-Oct-17
24-Feb-17 16-Feb-18 22-Feb-19
15-Dec-17
11-Aug-17 23-Aug-18 30-Aug-19
24-Nov-17 16-Nov-18
17-Mar-17 29-Mar-18 15-Mar-19
19-May-17 11-May-18 17-May-19
Senior tranches syndicated in Western Europe Deals consist of mandated, to loans in general syndication
Source: Debtwire Par
87 European Leveraged Insights – 3Q19 An Acuris Company
Deals in the market
Issuer Pricing Pro rata Bank Commitmen Name Sponsor Country Purpose Stage Institutional € Pricing OID Bookrunner(s) Rating Stage € Meeting t date 99.5- Xella Lone Star Germany B+/B2 Refinance General 1,670 Initial E+ 400bps 99.75/25- - GS, CS 19-Sep-19 25-Sep-19 50bps E+ 350bps- AutoStore THL Norway B/B2 LBO General 290 Revised 99.75 70 DB, Jefferies, MUFG 17-Sep-19 27-Sep-19 375bps
Parques EQT, Alba, Spain TBD LBO General 970 Revised E+ 375bps 99.5-99.75 - MS, JPM, San, BNP, ING 17-Sep-19 27-Sep-19 Reunidos GBL ION ION Corporates Investment USA B/B2 Merger General 1,582 Initial E+ 425bps 99 - CS 19-Sep-19 1-Oct-19 Group
Vivalto Sante CDC France B/B2 Acquisition General 120 Initial E+ 325bps 99.5-par - BNP, Nat 20-Sep-19 1-Oct-19
E+ 425bps- DB, UBS, UC, BNP, ADCO Apax Germany B/B2/B SBO General 475 Initial 99.5 - 25-Sep-19 9-Oct-19 450bps Comm, Nat
E+ 425bps- Schleich Partners Germany TBD SBO General 175 Initial 99-99.5 40 UC, Nat, Inv 9-Sep-19 TBD 450bps
Deals consist of mandated, to loans in general syndication
*Indicates where institutional/pro-rata split isn’t yet disclosed and so 80/20 split is presumed
Source: Debtwire Par
88 European Leveraged Insights – 3Q19 An Acuris Company
Deals coming to market
Issuer Pro rata Name Sponsor Country Purpose Stage Institutional Bookrunner(s) Bank Meeting Commitment date Rating € €
Merlin Kirkbi, Blackstone, UK BB/Ba2 LBO Mandated 2,230 434 BAML, DB, Barc, HSBC, Miz, UC TBD TBD Entertainment CPPIB
Inspired - USA B1 Acquisition Mandated 225 20 Nomura, Macq TBD TBD Entertainment
Cellnex Telecom Iliad Spain BB+/BBB- Acquisition Mandated 1,500* 225* Santander, Unicredit, DB TBD TBD
Prisa - Spain B/B2 Refinance Mandated 850* 128* MS, GS, JPM, BAML, HSBC TBD TBD
eFront BlackRock France TBD SBO Mandated 600 90 MS, CS, more TBD TBD TBD
Cobham Advent UK TBD LBO Mandated 2,488 305 CS, Citi, GS TBD TBD
Emera Naxicap, Ardian France TBD LBO Mandated 150* 50* CA, CIC, ING, LCL TBD TBD CRH Plc (European Distribution Blackstone UK TBD LBO Mandated 1,200 180* GS, BAML, BNPP, CS TBD TBD Network) Axel Springer KKR Germany TBD LBO Mandated 935 140* UC TBD TBD
Staci Group Ardian France TBD SBO Mandated 250* 170* Nat, SG, SMBC TBD TBD
Stonegate TDR Capital UK B-/B2 Acquisition Mandated 2,417 220 Barc, GS, Nom TBD TBD
Kantar Bain UK TBD LBO Pre-Mandated 1,800* 270* TBD TBD TBD
Ferrovial Servicios Ferrovial Spain TBD LBO Pre-Mandated 1,300* 195* TBD TBD TBD
Groupe ECF Naxicap France TBD Refinance Pre-Mandated 220* 33* TBD TBD TBD
Evoca Lone Star Italy B/B2 LBO Pre-Mandated 1,000* 150* TBD TBD TBD
Omnicare Pharma Equistone Germany TBD SBO Pre-Mandated 150* 23* TBD TBD TBD
Solidus Centerbridge Netherlands B- LBO Pre-Mandated 198* 30* TBD TBD TBD
Young's Seafood CapVest UK TBD LBO Pre-Mandated TBD - TBD TBD TBD
Source: Debtwire Par
Deals consist of mandated, to loans in general syndication 89 *Indicates where institutional/pro-rata split isn’t yet disclosed and so 80/20 split is presumed An Acuris Company
3Q19
Secondary loan market snapshot European Leveraged Insights – August 2019 An Acuris Company
Weighted average bid*
102.0 All term loans Institutional term loans 101.0 Most widely quoted institutional term loans
100.0
99.0 Weighted avg. bid bid (%avg. par) of Weighted
98.0
97.0
96.0
95.0
94.0
93.0
92.0
Source: Markit 91 European Leveraged Insights – August 2019 An Acuris Company
Par-plus share*
90
80 All term loans
70 Institutional term loans
60 Share of bid of loans >=100 Share (%)
50
40
30
20
10
0
Source: Markit 92 European Leveraged Insights – August 2019 An Acuris Company
Institutional term loans bid distribution* Monthly comparison 60%
Jun-19
50% Jul-19 Share of of loans Share Aug-19
Sep-19 40%
30%
20%
10%
0% <70 70 to<80 80 to <85 85 to <90 90 to <95 95 to <98 98 to <99 99 to <100 100 to <101 >=101
Avg. Bid (% of par)
Source: Markit 93 European Leveraged Insights – August 2019 An Acuris Company
Industry snapshot*
31-Dec-18 16% 103 30-Sep-19 101 Share 14%
99 Share of of market Share 97 12%
95
Weighted Avg. bid par) bid (% of Avg. Weighted 93 10%
91 8% 89
87 6% 85
83 4% 81
79 2% 77
75 0%
*Based on universe of institutional term loans priced in the secondary market..
Source: Markit 94 European Leveraged Insights – August 2019 An Acuris Company
Country of issuer*
102 31-Dec-18 20% 30-Sep-19 Share of Market 18% 100
16% of market Share 98
14% Weighted Avg. bid par) bid (% of Avg. Weighted
96 12%
94 10%
100.38
99.73 99.59
99.34 8%
99.11 98.71
92 98.70
98.28
98.27
98.21
98.14
98.00
97.90
97.67
97.48
97.36
96.78 96.47
96.22 6% 90 95.35 4%
88 2%
86 0%
*Based on universe of institutional term loans.
Source: Markit 95 European Leveraged Insights – August 2019 An Acuris Company
Pricing by currency*
99 100% Wtd. Avg. Bid
Share 90%
99 of market Share
Avg. bid bid (% of par) Avg. 80%
70% 98
60%
98 50% 98.56
40%
98 30%
20% 98 98.21
10%
98 0% EUR GBP
*Based on universe of institutional term loans
Source: Markit 96 European Leveraged Insights – August 2019 An Acuris Company
Advancers / decliners – All loans
100%
90%
Share of of loans Share 80%
70%
60%
50%
40%
30%
20%
10%
0%
Declined Unchanged Advanced
Source: Markit 97 European Leveraged Insights – August 2019 An Acuris Company
Biggest monthly ADVANCERS - Loans bid 90 OR ABOVE
Prior Initial Initial LoanX ID Issuer Deal Name Facility Ccy Country Industry Final Maturity Bid Offer Depth month-end Change % change Amount Spread Bid Douglas Holding 8/17 Cov-Lite LX165187 Kirk Beauty One GmbH TLB EUR Germany Retailing 300 12-Aug-22 325 90.917 92.083 3 87.813 3.104 3.53% B8 (fka B22) LX177184 TILNEY GROUP LTD Tilney Group 12/18 TLB GBP United Kingdom Professional & Business Services 335 22-Dec-25 500 99.625 100.375 thin 97.25 2.375 2.44%
LX167195 Diamond BC BV Diversey 9/17 (EUR) Cov-Lite TL EUR Netherlands Consumer Nondurables 970 06-Sep-24 325 96.792 97.625 6 95 1.792 1.89% Douglas Holding 2/17 Cov-Lite LX160535 Kirk Beauty One GmbH TLB EUR Germany Retailing 296.01 12-Aug-22 350 91.361 92.472 9 89.688 1.673 1.87% B3 (fka B17) Douglas Holding 2/17 Cov-Lite LX159199 Kirk Beauty One GmbH TLB EUR Germany Retailing 347.59 12-Aug-22 350 91.361 92.472 9 89.688 1.673 1.87% B1 (fka B15) Douglas Holding 2/17 Cov-Lite LX160534 Kirk Beauty One GmbH TLB EUR Germany Retailing 120.4 12-Aug-22 350 91.361 92.472 9 89.688 1.673 1.87% B2 (fka B16) Douglas Holding 2/17 Cov-Lite LX160536 Kirk Beauty One GmbH TLB EUR Germany Retailing 230.31 12-Aug-22 350 91.361 92.472 9 89.688 1.673 1.87% B4 (fka B18) Douglas Holding 2/17 Cov-Lite LX160537 Kirk Beauty One GmbH TLB EUR Germany Retailing 51.18 12-Aug-22 350 91.361 92.472 9 89.688 1.673 1.87% B5 (fka B19) Douglas Holding 2/17 Cov-Lite LX160538 Kirk Beauty One GmbH TLB EUR Germany Retailing 194.24 12-Aug-22 350 91.361 92.472 9 89.688 1.673 1.87% B6 (fka B20) Douglas Holding 2/17 Cov-Lite LX160539 Kirk Beauty One GmbH TLB EUR Germany Retailing 130.27 12-Aug-22 350 91.361 92.472 9 89.688 1.673 1.87% B7 (fka B21) Gates Global 11/17 (EUR) Cov- LX169690 GATES GLOB LLC TLB EUR United States Automotive 655.19 01-Apr-24 325 98.667 99.458 6 97.1 1.567 1.61% Lite Airbus (Defence LX171534 HENSOLDT Hldg GmbH TLB3 EUR Germany Aerospace/Defense 920 28-Feb-24 350 99.889 100.444 9 98.328 1.561 1.59% Electronics/Hensoldt) 2/18 LX175999 HORIZON BIDCO LTD Photobox 8/18 (EUR) TLB3 EUR United Kingdom Professional & Business Services 25 26-Jan-23 500 91.833 95.833 3 90.5 1.333 1.47%
LX150922 HORIZON BIDCO LTD Photobox 3/16 (GBP) TL GBP United Kingdom Professional & Business Services 55 26-Jan-23 550 91.833 95.833 3 90.5 1.333 1.47%
LX150921 HORIZON BIDCO LTD Photobox 3/16 (EUR) TL EUR United Kingdom Professional & Business Services 175 26-Jan-23 500 91.833 95.833 3 90.5 1.333 1.47%
LX168948 OBERTHUR TECH Oberthur 9/17 Cov-Lite TLB EUR France Computers & Electronics 1385 10-Jan-24 375 99.432 100.057 11 98.05 1.382 1.41%
LX165579 Veritas US Inc Veritas 6/17 (EUR) Cov-Lite TLB1 EUR United States Computers & Electronics 900 27-Jan-23 450 96.703 97.531 8 95.417 1.286 1.35% BMC Software 6/18 (EUR) Cov- LX174342 Boxer Parent Co Inc TL EUR United States Computers & Electronics 930 02-Oct-25 475 100.277 100.848 7 99 1.277 1.29% Lite LX159294 LGC SCIENCE HLDGS LTD LGC Science 1/17 (EUR) Cov-Lite TLB4 EUR United Kingdom Professional & Business Services 450.6 08-Mar-23 375 100 100.563 4 98.75 1.25 1.27%
LX174457 Tele Columbus AG Orion Cable 5/18 Cov-Lite TLA2 EUR Germany Media 707.46 15-Oct-24 300 95.313 96.354 6 94.125 1.188 1.26%
LX161834 OBOL FRANCE 3 OGF 3/17 Cov-Lite TLB EUR France Personal Services 960 11-Apr-23 375 94.393 95.429 7 93.25 1.143 1.23%
LX133218 PHM France Holdco 19 OGF 8/13 TLB1 EUR France Personal Services 54.6 31-Aug-20 450 94.393 95.429 7 93.25 1.143 1.23%
LX169196 INEOS FIN PLC Ineos 10/17 (EUR) Cov-Lite TLB EUR United Kingdom Chemicals 2060 01-Apr-24 200 99.625 100.193 11 98.422 1.203 1.22% INEOS ENTERPRISES HLDGS II LX181835 Ineos Enterprises 7/19 (EUR) TLB EUR United Kingdom Chemicals 580 28-Aug-26 400 99.929 100.554 7 98.833 1.096 1.11% LTD LX162137 Hunkemoller BV Hunkemoller 4/17 TLB2 EUR Netherlands Retailing 280 10-Feb-23 450 93 94.583 3 92 1 1.09%
Source: Markit 98 European Leveraged Insights – August 2019 An Acuris Company
Biggest monthly DECLINERS - Loans bid 90 OR ABOVE
Initial Final Initial Prior month- LoanX ID Issuer Deal Name Facility Ccy Country Industry Bid Offer Depth Change % change Amount Maturity Spread end Bid
MSX International 1/19 (EUR) United LX177038 PACIFIC BC TOPCO 5 LTD TLB3 EUR Securities & Trusts 498 08-Jan-24 450 90.908 93.845 4 94.75 -3.842 -4.05% Cov-Lite Kingdom TMF Group 5/18 2nd Lien Cov- Professional & Business LX169932 SAPPHIRE BIDCO B.V. TL EUR Netherlands 200 04-May-26 687.5 90.333 91.25 3 91.938 -1.605 -1.75% Lite Services Professional & Business LX169930 SAPPHIRE BIDCO B.V. TMF Group 5/18 Cov-Lite TLB EUR Netherlands 950 05-May-25 325 93.2 94.3 5 94.833 -1.633 -1.72% Services LX175941 Alpha AB Bidco BV Ammeraal Beltech 9/18 TL EUR Netherlands Healthcare 830 30-Jul-25 375 96.275 97.425 5 97.875 -1.6 -1.63%
LX180519 Rodenstock GmbH Rodenstock 6/19 Cov-Lite TLB EUR Germany Healthcare 395 15-Jun-26 525 94.375 95.25 thin 95.917 -1.542 -1.61% United LX179873 Celine UK Newco 1 Ltd Debenhams/Celine 4/19 TLB GBP Securities & Trusts 98.19 30-Jun-21 1200 98.5 100.5 thin 100 -1.5 -1.50% Kingdom United LX179872 Celine UK Newco 1 Ltd Debenhams/Celine 4/19 TLA GBP Securities & Trusts 101.81 30-Jun-21 1200 98.5 100.5 thin 100 -1.5 -1.50% Kingdom LX169954 Rain Carbon Inc Rain Carbon 12/17 TLB EUR United States Machinery 390 16-Jan-25 300 95.667 96.583 3 96.792 -1.125 -1.16% United LX170881 ZARA UK MIDCO LTD Flamingo/Afriflora 1/18 TLB EUR Retailing 280 03-Feb-25 575 91.333 93.25 3 92.333 -1 -1.08% Kingdom LX176572 ASP UNIFRAX HLDGS INC Unifrax 12/18 (EUR) Cov-Lite TLB EUR United States Chemicals 310 12-Dec-25 375 96.094 97.219 4 97.125 -1.031 -1.06% Computers & LX162900 Diebold Nixdorf Inc Diebold 5/17(EUR) TLB EUR United States 415 06-Nov-23 300 93 94.389 9 93.929 -0.929 -0.99% Electronics Professional & Business LX169648 Nets Holdco 4 ApS Nets 11/17 (EUR) B1E Cov-Lite TLB EUR Denmark 1860 06-Feb-25 350 99.181 99.764 9 99.913 -0.732 -0.73% Services United Computers & LX173635 ZEPHYR MIDCO 2 LTD ZPG 6/18 (GBP) Cov-Lite TLB GBP 395 23-Jul-25 475 96.542 97.438 6 97.175 -0.633 -0.65% Kingdom Electronics Accolade Wine 5/18 (GBP) United LX173642 AMPHORA FIN LTD TLB GBP Securities & Trusts 301 26-May-25 475 99.125 100 thin 99.75 -0.625 -0.63% Cov-Lite Kingdom TeamViewer 1/17 (EUR) Cov- Computers & LX160298 TigerLuxOne Sa rl TLB EUR Luxembourg 226 22-Feb-24 450 100 100.75 4 100.625 -0.625 -0.62% Lite Electronics Entertainment And LX176311 FINANCIERE ABRA SAS Asmodee 10/18 (GBP) Cov-Lite TLB1 GBP France 47.72 23-Oct-25 475 98.333 99.333 3 98.938 -0.605 -0.61% Leisure Entertainment And LX176716 FINANCIERE ABRA SAS Asmodee 10/18 (GBP) Cov-Lite TLB2 GBP France 67.28 23-Oct-25 475 98.333 99.333 3 98.938 -0.605 -0.61% Leisure Dexko Global 1/18 (EUR) Cov- LX170821 DexKo Glob Inc TLB1 EUR United States Automotive 326.4 24-Jul-24 375 98.525 99.375 5 99.125 -0.6 -0.61% Lite Dexko Global 1/18 (EUR) Cov- LX171014 DexKo Glob Inc TLB2 EUR United States Automotive 130.56 24-Jul-24 375 98.525 99.375 5 99.125 -0.6 -0.61% Lite Entertainment And LX176310 FINANCIERE ABRA SAS Asmodee 10/18 (EUR) Cov-Lite TLB1 EUR France 121.59 23-Oct-25 425 98.594 99.406 4 99.188 -0.594 -0.60% Leisure Entertainment And LX176715 FINANCIERE ABRA SAS Asmodee 10/18 (EUR) Cov-Lite TLB2 EUR France 171.41 23-Oct-25 425 98.594 99.406 4 99.188 -0.594 -0.60% Leisure United Professional & Business LX169642 CAMELIA BIDCO LTD Civica 10/17 Cov-Lite TLB2 GBP 50 14-Oct-24 475 98.125 99.125 3 98.688 -0.563 -0.57% Kingdom Services United Professional & Business LX168834 CAMELIA BIDCO LTD Civica 10/17 Cov-Lite TLB1 GBP 394 14-Oct-24 475 98.125 99.125 3 98.688 -0.563 -0.57% Kingdom Services LX143652 AS ADVENTURE BELGIUM SA AS Adventure 4/15 TLB EUR Belgium Retailing 200 14-Apr-22 500 90.031 92.469 4 90.5 -0.469 -0.52% United Professional & Business LX144153 EAGLE BIDCO LTD Eagle Bidco 4/15 TLB GBP 511.5 12-May-22 475 99 99.875 5 99.5 -0.5 -0.50% Kingdom Services
Source: Markit 99 European Leveraged Insights – August 2019 An Acuris Company
Biggest monthly ADVANCERS - Loans bid LESS THAN 90
Prior Initial Initial LoanX ID Issuer Deal Name Facility Ccy Country Industry Final Maturity Bid Offer Depth month-end Change % change Amount Spread Bid
LX142327 Safety Glob Lux Sa rl BARTEC 11/14 PIK TLC3 EUR Luxembourg Computers & Electronics 40.95 30-Jun-22 775 48.929 52.5 7 45 3.929 8.73%
LX134377 BARTEC GmbH BARTEC 12/13 TLC EUR Germany Computers & Electronics 198.57 30-Jun-22 450 48.929 52.5 7 45 3.929 8.73%
LX142328 Safety Glob Lux Sa rl BARTEC 11/14 TLC4 EUR Luxembourg Computers & Electronics 95 30-Jun-22 450 48.929 52.5 7 45 3.929 8.73% Steinhoff/Steenbok 8/19 2nd Lien LX182306 Steenbok Lux Finco 2 SARL TLB2 EUR Luxembourg Securities & Trusts 1106.41 31-Dec-21 1075 45 48.5 thin 41.5 3.5 8.43% SEAG LX137333 DEOLEO SA Deoleo 6/14 Perfected TL EUR Spain Food And Beverage 460 11-Jun-21 350 43.563 45.875 4 40.375 3.188 7.90%
LX164355 Watson BidCo BV Dummen Orange 5/17 Cov-Lite TLB EUR Netherlands Retailing 425 20-May-24 350 63.75 65.8 5 59.633 4.117 6.90% HILDING ANDERS FING AB LX169486 Hilding Anders 11/17 (EUR) TLB2 EUR Sweden Home Furnishings 500 29-Nov-24 450 78.125 80 4 75.429 2.696 3.57% PUBL LX168817 DEOLEO SA Deoleo 6/14 Unperfected TL EUR Spain Food And Beverage 11-Jun-21 350 40 43.5 thin 39.5 0.5 1.27%
LX160294 KETER GROUP BV Keter 3/17 (EUR) B3A Cov-Lite TL EUR Netherlands Home Furnishings 320 31-Oct-23 425 85.682 87.216 11 84.65 1.032 1.22%
LX155222 KETER GROUP BV Keter 10/16 (EUR) Cov-Lite TLB EUR Netherlands Home Furnishings 785 31-Oct-23 425 85.682 87.216 11 84.65 1.032 1.22%
LX137083 MUSTANG BIDCO LTD CarTrawler 5/14 TLB EUR United Kingdom Leasing 160 29-Apr-21 425 86 87.375 thin 85 1 1.18%
LX171876 GTT Comms BV GTT 4/18 (EUR) Cov-Lite TL EUR Netherlands Computers & Electronics 750 31-May-25 325 84.438 86.313 8 83.55 0.888 1.06% GRUPO IBERICA LX179611 Iberconsa 5/19 TLB1 EUR Spain Food And Beverage 163.597 28-Nov-24 700 88.25 90.25 thin 88 0.25 0.28% CONGELADOS SA GRUPO IBERICA LX181380 Iberconsa 5/19 TLB2 EUR Spain Food And Beverage 146.402 28-Nov-24 700 88.25 90.25 thin 88 0.25 0.28% CONGELADOS SA Technicolor 3/17 (EUR) LX162153 Technicolor TLB EUR France Media 275 06-Dec-23 300 88.55 89.85 5 88.417 0.133 0.15% Incremental Cov-Lite LX157075 Technicolor Technicolor 12/16 (EUR) Cov-Lite TLB EUR France Media 450 06-Dec-23 350 89.938 91 4 89.813 0.125 0.14%
LX153794 Sixteen Gooseberry Sa rl Kalle 6/16 TLB1 EUR Luxembourg Food And Beverage 145 28-Jun-23 475 81.083 82.75 3 81 0.083 0.10%
Source: Markit 100 European Leveraged Insights – August 2019 An Acuris Company
Biggest monthly DECLINERS - Loans bid LESS THAN 90
Initial Final Initial Prior month- LoanX ID Issuer Deal Name Facility Ccy Country Industry Bid Offer Depth Change % change Amount Maturity Spread end Bid
LX137334 DEOLEO SA Deoleo 6/14 2nd Lien TL EUR Spain Food And Beverage 55 13-Jun-22 675 2 5 thin 4.2 -2.2 -52.38%
LX174399 ANTALIS INTL Antalis 5/18 TLD EUR France Forest Products 235 31-Dec-21 600 55 60 thin 63.5 -8.5 -13.39%
LX173453 Prophylaxis HoldCo BV Curaeos 5/18 Cov-Lite TLB EUR Netherlands Securities & Trusts 268 05-Jun-25 400 78 83 thin 88 -10 -11.36% Computers & LX163467 OEP Trafo HoldCo GmbH SGB-SMIT 7/17 TLB EUR Germany 360 18-Jul-24 400 62.4 65.6 5 69.333 -6.933 -10.00% Electronics Holland & Barrett 8/17 (EUR) LX167539 L1R HB FIN LTD TL EUR Jersey Leasing 415.48 02-Sep-24 425 68.6 72.4 5 75.833 -7.233 -9.54% Cov-Lite Holland & Barrett 8/17 (GBP) LX167538 L1R HB FIN LTD TL GBP Jersey Leasing 450 02-Sep-24 525 68.75 73 4 75 -6.25 -8.33% Cov-Lite Klockner Pentaplast 6/17 LX165634 Klockner Pentaplast of America Inc TL EUR United States Chemicals 725 30-Jun-22 475 84.236 86.069 9 88.475 -4.239 -4.79% (EUR) Cov-Lite LX170041 CELSA GROUP Celsa 10/17 Convert 1 TL EUR Spain Steel 400 30-Apr-23 350 13.375 15.5 4 14 -0.625 -4.46%
LX170042 CELSA GROUP Celsa 10/17 Convert 2 TL EUR Spain Steel 850 30-Apr-23 350 13.375 15.5 4 14 -0.625 -4.46%
LX170046 CELSA GROUP Celsa 10/17 Convert Strip TL EUR Spain Steel 31-Oct-22 13.375 15.5 4 14 -0.625 -4.46%
LX176938 CELSA GROUP Celsa 11/18 TL3 EUR Spain Steel 44.78 30-Apr-23 375 13.375 15.5 4 14 -0.625 -4.46%
LX139578 Vivarte SA Vivarte 10/14 Super Senior TL EUR France Textile & Apparel Mfg. 500 29-Oct-19 1100 33.5 40 thin 35 -1.5 -4.29% Steinhoff/Steenbok 8/19 LX180046 Steenbok Lux Finco 2 SARL TLA2 EUR Luxembourg Securities & Trusts 3591.04 31-Dec-21 1075 62.536 64.464 7 65.25 -2.714 -4.16% (Fixed 10.75%) 2nd Lien Innovation Group 4/19 PIK United Computers & LX180166 INNOVATION INTL HLDGS LTD TL GBP 100 10-Apr-24 800 48 57 3 49.5 -1.5 -3.03% Holdco Kingdom Electronics Doncasters 4/13 (GBP) Cov- LX128950 DONCASTERS US FIN LLC TL GBP United States Aerospace/Defense 160 09-Apr-20 475 66.9 69.5 5 68.583 -1.683 -2.45% Lite Ecobat 5/07 (EUR) PIK Cov- United LX068349 EB Hldgs Inc TL EUR Metals & Mining 600 31-Mar-17 1100 31.5 33.5 3 32.25 -0.75 -2.33% Lite Kingdom Flint Group 4/14 (EUR) 2nd LX136884 ColourOz Invt 1 GmbH TL EUR Germany Chemicals 150 06-Sep-22 725 72.625 74.75 4 73.75 -1.125 -1.53% Lien Britax Childcare 10/13 (EUR) LX133187 BRITAX US HLDGS INC TL EUR United States Manufacturing 65 15-Oct-20 375 68.75 72.75 thin 69.5 -0.75 -1.08% Cov-Lite LX167174 CatLuxe Sa rl Pronovias 9/17 Cov-Lite TLB1 EUR Luxembourg Retailing 61 02-Oct-24 450 88.875 90.563 4 89.833 -0.958 -1.07%
LX171236 CatLuxe Sa rl Pronovias 1/18 Cov-Lite TLB3 EUR Luxembourg Retailing 154 02-Oct-24 450 88.875 90.563 4 89.833 -0.958 -1.07%
LX155393 Fusilli AcquiCo Sa rl Flakt Woods 10/16 TLB EUR Luxembourg Machinery 300 12-Oct-23 500 88.411 90.375 7 89.35 -0.939 -1.05% United LX129910 ALPHYN FINCO LTD Addison Lee 4/13 TLB GBP Transportation 100 19-Apr-20 525 78.5 81.5 thin 79.333 -0.833 -1.05% Kingdom United LX136967 ALPHYN FINCO LTD Addison Lee 4/14 TLB3 GBP Transportation 70 17-Apr-20 475 78.5 81.5 thin 79.333 -0.833 -1.05% Kingdom United LX136965 ALPHYN FINCO LTD Addison Lee 4/14 TLB1 GBP Transportation 19-Apr-20 525 78.5 81.5 thin 79.333 -0.833 -1.05% Kingdom United LX136968 ALPHYN FINCO LTD Addison Lee 4/14 TLB4 GBP Transportation 45 17-Apr-20 475 78.5 81.5 thin 79.333 -0.833 -1.05% Kingdom
Source: Markit 101 An Acuris Company
3Q19 Outstanding leverage loan debt stats (based on loans quoted in the secondary market) European Leveraged Insights – August 2019 An Acuris Company
Outstanding term loan debt*
300 EUR bils. EUR 253 250
200 175
150
100
50
0 Institutional term loans All term loans
*Based on universe of loans quoted in the secondary market
Source: Markit, Debtwire 103 European Leveraged Insights – August 2019 An Acuris Company
Outstanding term loan debt by industry*
40.0
EUR bils. EUR 34.1 35.0 33.4
30.0
25.0
20.7 20.0 19.1 17.7
14.9 15.0 12.3 10.7 10.5 10.0 8.3 7.9 5.8 5.1 4.8 4.8 4.5 4.0 3.8 5.0 3.2 2.7 2.3 2.1 2.1 2.1 1.9 1.9 1.6 1.5 1.5 1.3 1.3 1.3 1.0 1.0 1.0 0.8 0.4 0.0
*Based on universe of loans quoted in the secondary market
Source: Markit, Debtwire 104 European Leveraged Insights – August 2019 An Acuris Company
Maturity profile of outstanding term loan debt*
80.0
73.4 EUR bils. EUR 69.4 70.0
62.062.5 60.0
50.0 44.1
40.0
31.0 30.0 28.6
23.7 20.0 20.0 16.8 14.3
10.0 8.3
3.74.1 1.81.9 1.92.6 0.0 2019 2020 2021 2022 2023 2024 2025 2026 >=2027
Maturity date
*Based* Based on on loans universe where of loans maturity quoted date in is the available. secondary market. Based on universe of loans quoted in the secondary market.
Source: Markit, Debtwire 105 European Leveraged Insights – August 2019 An Acuris Company
Margin distribution of outstanding term loan debt*
80.0 EUR bils. EUR 70.0 67.4
60.0
51.7 50.0 43.4
40.0
30.0 28.1
20.0 18.5 14.7 11.7 10.0 8.1 6.4
1.9 0.0 1.0 0.4 0.0
Margin (bps)
* Based on universe of loans quoted in the secondary market.
Source: Markit, Debtwire 106 An Acuris Company
3Q19 CLO market focus
Based on CLO market data provided by sister company, Creditflux.
For more information about ways Creditflux can help you, please contact [email protected] European Leveraged Insights – 3Q19 An Acuris Company
New issue CLO volume - Annual
50
EUR bils EUR 45
40
35
30
25
42.6 20
15 29.5 27.2
22.2 10 20.1 16.8 14.3 13.8 11.5 5 8.3 8.0 6.6 2.4 2.5 2.1 0 1.0 0.0 0.9 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD
Source: Creditflux, Wells Fargo 108 European Leveraged Insights – 3Q19 An Acuris Company
New issue CLO volume - Quarterly
8.5
8.0 EUR bils EUR
7.5
7.0
6.5
6.0
5.5
5.0
4.5
4.0 7.7 7.8 7.4 7.4 3.5 7.1 6.9 6.5 3.0 6.0 6.2
2.5 5.0 4.6 4.6 4.4 4.5 4.4 2.0 3.9 3.5 3.3 3.5 1.5 2.8 2.5 2.5 2.6 1.0
0.5
0.0
Source: Creditflux, Wells Fargo 109 European Leveraged Insights – 3Q19 An Acuris Company
New issue CLO volume - Monthly
6.0 EUR bils EUR 5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19
Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19
Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19
Oct-14 Oct-15 Oct-16 Oct-17 Oct-18
Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19
Dec-14 Dec-15 Dec-16 Dec-17 Dec-18
Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 Aug-19
Nov-14 Nov-15 Nov-16 Nov-17 Nov-18
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
May-14 May-15 May-16 May-17 May-18 May-19
Source: Creditflux, Wells Fargo 110 European Leveraged Insights – 3Q19 An Acuris Company
CLO refinancing, reset, re-issue volume - Quarterly
8.5
EUR bils EUR 8.0 Re-issues
7.5 Refinancings Resets 7.0
6.5 3.7 6.0
5.5 1.3
5.0 2.4 3.2 4.5
4.0 0.6 1.8 1.4
3.5 1.9 2.1 0.7 3.0
2.5 1.2 4.3 2.0 2.2 3.8 3.3 3.4 0.4 1.5 3.0 2.4 2.0 2.6 1.0 2.0 1.5 0.48 0.5 1.0 0.4 0.3 0.0 0.0 0.0 0.0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Creditflux 111 European Leveraged Insights – 3Q19 An Acuris Company
CLO refinancing & reset volume - Monthly
Re-issues 3.5 Refinancings
EUR bils EUR Resets
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Jul-16 Jul-17 Jul-18 Jul-19
Jan-16 Jan-17 Jan-18 Jan-19
Jun-16 Jun-17 Jun-18 Jun-19
Sep-16 Sep-17 Sep-18 Sep-19
Apr-16 Apr-17 Apr-18 Apr-19
Oct-16 Oct-17 Oct-18
Feb-19 Feb-16 Feb-17 Feb-18
Dec-16 Dec-17 Dec-18
Aug-16 Aug-17 Aug-18 Aug-19
Nov-16 Nov-17 Nov-18
Mar-19 Mar-16 Mar-17 Mar-18
May-16 May-17 May-18 May-19
Source: Creditflux 112 European Leveraged Insights – 3Q19 An Acuris Company
CLO new issue pricing*
1,200
3Q18
4Q18 1,000 1Q19 957 942 921 2Q19 835 3Q19 796
Avg. discount margin (bps) Avg. 800
666 661 647 619 600 576
392 383 396 400 358 322
273 262 242 253 226 199 184 193 200 169 176 111 113 106 89 99
0 AAA AA A BBB BB B
*We exclude shorter dated CLOs
Source: Creditflux 113 European Leveraged Insights – August 2019 An Acuris Company
CLO new issue AAA pricing*
130
120
AAA DM Average
110 AAA discount margin margin (bps) discountAAA
100
90
80
70
60
Jul-17 Jul-18 Jul-19
Jan-17 Jan-18 Jan-19
Jun-17 Jun-18 Jun-19
Sep-17 Sep-18 Sep-19
Apr-17 Apr-18 Apr-19
Oct-17 Oct-18
Feb-17 Feb-18 Feb-19
Dec-18 Dec-17
Aug-17 Aug-18 Aug-19
Nov-17 Nov-18
Mar-17 Mar-18 Mar-19
May-17 May-18 May-19
*Excludes shorter dated CLOs
Source: Creditflux 114 European Leveraged Insights – August 2019 An Acuris Company
New issue CLOs - YTD19
Discounted margin
Pricing date CLO name Manager Arranger Size AAA AA A BBB BB B
27-Sep-19 Mackay Shields Euro CLO I Mackay Shields JP Morgan 359 93 180 260 405 700 987 27-Sep-19 Northwoods Capital Euro XIX Angelo Gordon BAML 406 92 198 250 400 700 985 19-Sep-19 Contego CLO VII Five Arrows Morgan Stanley 460 93 191 240 395 660 960 13-Sep-19 Adagio VIII Axa Barclays 373 93 181 240 380 675 950 12-Sep-19 Purple Finance CLO 2 Ostrum Natixis 409 100 235 263 410 - - 30-Jul-19 Dunedin Park GSO Deutsche Bank 410 107 202 267 390 675 - 26-Jul-19 Hayfin Emerald CLO III Hayfin Citi 411 110 185 260 400 675 940 25-Jul-19 Barings Euro CLO 2019-1 Barings Goldman Sachs 407 108 175 245 400 - - 24-Jul-19 Ares European CLO XII Ares BAML 463 108 175 240 390 660 950 19-Jul-19 Tikehau CLO V Tikehau Natixis 451 110 186 258 400 640 940 18-Jul-19 Sound Point Euro CLO II Sound Point Credit Suisse 407 111 - 270 415 700 950 16-Jul-19 Harvest XXII Investcorp Citi 478 110 180 245 400 660 925 12-Jul-19 Toro European CLO 6 Chenavari Morgan Stanley 360 114 180 250 410 700 940 Barclays (lead)/ Morgan Stanley/ Citi/ Goldman 10-Jul-19 GoldenTree Loan Management EUR CLO 3 GoldenTree 402 112 190 260 390 665 925 Sachs/ Wells Fargo 10-Jul-19 BNPP AM Euro CLO 2019 BNP BNP 408 110 196 240 385 620 915 08-Jul-19 CVC Cordatus Loan Fund XV CVC BAML 408 110 204 245 375 620 880 03-Jul-19 Carlyle GMS Euro CLO 2019-2 Carlyle Citi 409 111 209 250 400 680 940 01-Jul-19 CIFC European Funding CLO I CIFC Deutsche Bank 407 114 207 270 385 630 950 27-Jun-19 Providus CLO III Permira BAML 382 112 210 245 375 620 890 27-Jun-19 Grand Harbour CLO 2019-1 MeDirect Barclays 407 120 234 280 410 675 975 27-Jun-19 Penta CLO 6 Partners Group BNP 408 112 187 245 385 655 945 10-Jun-19 Black Diamond CLO 2019-1 Black Diamond Natixis 404 ------07-Jun-19 Henley CLO I Napier Park Citi 406 114 201 245 360 610 895 06-Jun-19 Fair Oaks Loan Funding I Fair Oaks Deutsche Bank 333 97 185 260 375 650 900 04-Jun-19 St. Paul's CLO XI ICG BAML 411 112 180 240 360 650 930
Continued on next slide………. Source: Creditflux 115 European Leveraged Insights – August 2019 An Acuris Company
New issue CLOs - YTD19
Discounted margin
Pricing date CLO name Manager Arranger Size AAA AA A BBB BB B
28-May-19 Invesco Euro CLO II Invesco Citi 412 114 180 235 360 610 880 Apollo (Redding 28-May-19 RRE 2 Citi 402 115 180 240 360 629 - Ridge) 24-May-19 Aqueduct European CLO 4-2019 HPS Morgan Stanley 407 111 202 240 355 600 885 20-May-19 Madison Park Euro XIV CSAM Credit Suisse 521 113 204 262 360 630 900 09-May-19 OZLME VI Och-Ziff Morgan Stanley 406 114 180 255 380 635 915 02-May-19 Voya Euro CLO II Voya Citi 405 114 207 275 390 640 940 17-Apr-19 Dryden 69 Euro PGIM Deutsche Bank 410 110 197 300 400 629 843 12-Apr-19 BlackRock European VIII BlackRock Natixis 409 110 208 283 402 630 935 11-Apr-19 Sound Point Euro CLO I Sound Point Citi 508 116 238 300 425 710 975 05-Apr-19 Bardin Hill 2019-1 Bardin Hill BAML 359 115 185 280 410 725 961 05-Apr-19 Jubilee 2019-XXII Alcentra Barclays 408 109 185 270 400 700 950 05-Apr-19 OCP Euro CLO 2019-3 Onex JP Morgan 431 94 190 250 360 615 915 28-Mar-19 Avoca CLO XX KKR Morgan Stanley 456 110 180 270 390 630 950 22-Mar-19 Arbour CLO VI Oaktree Barclays 411 109 185 270 390 630 925 15-Mar-19 Euro-Galaxy VII Pinebridge Credit Suisse 413 114 185 275 400 675 950 15-Mar-19 CVC Cordatus Loan Fund XIV CVC Goldman Sachs 412 113 185 265 387 - - 13-Mar-19 Hayfin Emerald CLO II Hayfin Goldman Sachs 408 124 185 280 375 - - 04-Mar-19 Bilbao CLO II Guggenheim Citi 410 114 185 275 395 650 - Apollo (Redding 01-Mar-19 RRE 1 BNP 452 109 185 270 390 645 - Ridge) 01-Mar-19 Ares European CLO XI Ares Citi 462 109 185 270 395 650 940 25-Feb-19 St. Paul's CLO X ICG Goldman Sachs 410 114 185 275 400 690 985 14-Feb-19 Aurium CLO V Spire BAML 448 114 185 275 390 660 950 08-Feb-19 Harvest CLO XXI Investcorp Barclays 409 108 185 275 400 680 965 08-Feb-19 Aqueduct European CLO 3-2019 HPS Citi 412 108 185 275 390 660 935 08-Feb-19 BlueMountain Fuji Euro CLO IV BlueMountain Deutsche Bank 360 110 185 295 410 700 975
Source: Creditflux 116 European Leveraged Insights – August 2019 An Acuris Company
New issue CLOs - YTD19
Discounted margin
Pricing date CLO name Manager Arranger Size AAA AA A BBB BB B
01-Feb-19 Carlyle Euro CLO 2019-1 Carlyle BNP 409 108 180 265 400 670 975 01-Feb-19 Crosthwaite Park GSO GreensLedge/ Natwest markets 513 ------25-Jan-19 Cadogan Square CLO XIII CSAM Barclays 509 108 2.25%* 260 375 650 975
Source: Creditflux 117 European Leveraged Insights – August 2019 An Acuris Company
Re-issue CLOs - YTD19
Discounted margin Pricing date CLO name Manager Arranger Size AAA AA A BBB BB B
28-Mar-19 Accunia European CLO I Accunia Citi 477.03 95 170 270 400 675 750
Source: Creditflux
118 European Leveraged Insights – August 2019 An Acuris Company
CLO resets – YTD19
Discounted margin Pricing date CLO name Manager Arranger Size AAA AA A BBB BB B
27-Sep-19 Ares European VIII Ares Barclays 422.25 92 160 235 380 675 1000 176. 27-Sep-19 Harvest CLO XVII Investcorp BNP Paribas 425.15 92 240 395 675 995 875 13-Sep-19 St. Paul's CLO II ICG Goldman Sachs 374.20 75 155 225 360 - - 187. 11-Sep-19 Avoca CLO XVII KKR Citi 519.48 96 250 385 673 968 32 106.1 192. 294. 09-Sep-19 Dryden 48 Euro CLO PGIM BNP 418.00 425 725 980 9 81 52 08-Aug-19 Aurium CLO I Spire Barclays 416.00 105 175 230 390 650 975
15-Apr-19 Cairn IV Cairn Credit Suisse 279.60 93 165 250 380 630 930
14-Feb-19 CVC Cordatus Loan Fund IV CVC Morgan Stanley 358.60 97 170 250 380 640 900
Source: Creditflux 119 European Leveraged Insights – August 2019 An Acuris Company
CLO refinance – YTD19
Discounted margin Pricing date CLO name Manager Arranger Size AAA AA A BBB BB B
26-Sep-19 Aurium CLO III Spire Barclays 271.50 67 140 - - - - 72.30 151. 18-Sep-19 Cordatus VIII CVC Deutsche Bank 316.00 220 - - - 5 25 23-Aug-19 Euro Galaxy III Pinebridge JP Morgan 343.20 ------
02-Aug-19 OZLME CLO Och-Ziff Credit Suisse 359.00 82 160 235 330 590 -
29-Jul-19 Euro Galaxy V Pinebridge BAML 371.20 82 160 235 350 600 850
24-Jul-19 GLG Euro CLO II Man GLG Morgan Stanley 224.70 ------
10-Jun-19 Tikehau CLO II Tikehau Citi 285.00 88 - 225 325 - -
07-Jun-19 BlackRock European II BlackRock Morgan Stanley 360.00 88 150 220 310 595 -
17-May-19 Carlyle Euro CLO 2016-2 Carlyle BAML 300.00 87 - 235 320 615 -
17-May-19 Dryden 46 PGIM Citi 364.02 92.59 170 240 330 - -
16-May-19 Arbour CLO IV Oaktree BNP 332.70 95.59 155 225 310 - -
18-Apr-19 Clarinda Park GSO BAML 359.00 90 160 255 340 620 -
Source: Creditflux 120 An Acuris Company
3Q19
High yield bond scorecards European Leveraged Insights – 3Q19 An Acuris Company
High-yield bond market scorecard - Quarterly
YoY change (2018 YTD 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 2018 YTD 2019 YTD - vs 2019 (EUR bn) (EUR bn) (EUR bn) (EUR bn) (EUR bn) (EUR bn) (EUR bn) (EUR bn) (EUR bn) YTD) (EUR bn)
High yield bond issuance 21.13 22.20 18.75 9.11 10.94 25.74 26.87 62.09 63.55 2%
New money issuance 9.64 9.83 9.44 5.50 4.51 7.11 13.13 28.92 24.75 -14%
Bond refinancings 11.49 12.37 9.31 3.61 6.43 18.63 13.04 33.17 38.10 15%
HY Bond M&A issuance 1.92 3.23 0.81 1.49 0.78 2.59 4.88 5.95 8.25 39% (ex. LBOs)
LBO bond issuance 1.17 1.78 6.01 1.55 - 0.81 2.61 8.96 3.42 -62%
Sponsored bond issuance 5.18 3.40 6.99 3.51 0.44 3.64 4.93 15.57 9.00 -42%
HY bonds refinancing 1.90 1.86 1.63 1.68 1.01 1.14 0.85 5.39 3.00 -44% loans
Reverse Yankee issuance 2.93 2.81 2.53 2.05 0.70 0.81 0.72 8.26 2.23 -73%
Avg. yield to maturity- 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 - fixed rate bonds
Senior secured 5.76% 5.76% 6.25% 6.02% 3.82% 4.73% 5.09% -
Senior unsecured 4.63% 4.63% 6.52% 3.90% 3.49% 4.39% 4.36% -
All 5.21% 5.21% 6.37% 4.99% 3.53% 4.56% 4.83% -
ICE BAML Euro -0.48% -1.21% 1.67% -3.58% 5.10% 2.51% 1.29% HY Index
Source: Debtwire Par 122 European Leveraged Insights – 3Q19 An Acuris Company
High-yield bond market scorecard - Annual
- 2015 2016 2017 2018 2019 YTD
High yield bond issuance 77.9 86.1 114 71.2 63.6
New money issuance 42.6 40.3 44.4 34.4 24.7
Bond refinancings 35.2 45.8 69.6 36.8 38.1
HY Bond M&A issuance (ex. LBOs) 17.2 4.7 7.8 7.4 8.3
LBO bond issuance 11 3.2 2.2 10.5 3.4
Sponsored bond issuance 19.1 9.6 19 19.1 9.0
HY bonds refinancing loans 2.6 10.6 10.8 7.1 3.0
Reverse Yankee issuance 5.3 9.2 13.2 10.3 2.2
Avg. yield to maturity – fixed rate bonds 2015 2016 2017 2018 2019 YTD
Senior secured 5.80% 6.30% 5.10% 5.90% 4.88%
Senior unsecured 5.10% 4.80% 4.30% 5.00% 4.12%
All 5.40% 5.50% 4.60% 5.40% 4.50%
ICE BAML Euro 0.71% 9.11% 6.76% -3.66% 9.13% HY Index
Source: Debtwire Par 123 An Acuris Company
3Q19
High-yield bond issuance overview European Leveraged Insights – 3Q19 An Acuris Company
High-yield bond issuance - Annual
120.0 324 350 Issuance Number of deals 100.0 300 232 EUR bils. EUR 222 250
80.0 199 Number of of deals Number 161 200 60.0 114.0 105.5 133 150 86.1 40.0 77.9 71.2 63.6 100
20.0 50
0.0 0 2014 2015 2016 2017 2018 2019 YTD
High-yield bond issuance - Quarterly
60.0 120 Issuance Number of deals 100
50.0 91 92 100 EUR bils. EUR 75 75 76 40.0 73 72 80
66 of deals Number 60 56 57 57 30.0 60 46 48 53.1 42 45 20.0 39.4 40 25 27 28 22 31.3 29.3 21 29.5 31.1 25.4 17 28.6 26.6 25.7 26.9 10.0 21.1 22.2 20 18.2 19.4 16.8 18.8 8.9 9.0 8.2 8.6 9.1 10.9 0.0 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 125 European Leveraged Insights – 3Q19 An Acuris Company
Share of fixed vs. floating HY bond issuance
Floating rate Fixed rate 100 5 10 11 16 14 90 18
80 Share of issuance (%) of issuance Share
70
60
50 95 90 89 84 86 40 82
30
20
10
- 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 126 European Leveraged Insights – 3Q19 An Acuris Company
High-yield bond issuance – Use of proceeds – 2019 to date
40.0
EUR bils. EUR 35.0
30.0
25.0
20.0
35.4
15.0
10.0
5.0 8.3 5.7 3.0 3.4 2.5 1.9 1.3 0.0 0.8 0.7 Refinancing General Acquisition Refinancing LBO Merger Debt Repay Dividend Refinancing Minority Bond Corporate Loan Recap equity stake acquisition
Source: Debtwire Par 127 European Leveraged Insights – 3Q19 An Acuris Company
High-yield bond issuance by rating* – 2019 to date
25.0 EUR bils. EUR
20.0
15.0
21.1 10.0
5.0 10.1 9.0 8.2
5.0 4.9 3.7 1.4 0.0 >=BB+ BB BB- B+ B B- <=CCC+ N/A
*Based on universe of loans that are rated. Where split rated, higher rating is used. Only Moody’s and S&P ratings are considered.
Source: Debtwire Par 128 European Leveraged Insights – 3Q19 An Acuris Company
High-yield bond issuance by rating
120 100% n/a <=CCC+
B- 90% EUR bils. EUR 100 B
B+ of issuance Share 80% BB- BB 70% 80 >=BB+ 60%
60 50%
40%
40 30%
20% 20
10%
0 0% 2014 2015 2016 2017 2018 2019 YTD 2014 2015 2016 2017 2018 2019 YTD
*Based on universe of loans that are rated. Where split rated, higher rating is used. Only Moody’s and S&P ratings n/a <=CCC+ B- B B+ BB- BB >=BB+ are considered.
Source: Debtwire Par 129 European Leveraged Insights – 3Q19 An Acuris Company
M&A (excluding LBOs) high-yield bond issuance - Annual
25.0
20.0 EUR bils. EUR
15.0
10.0 19.9 17.2
5.0 7.8 7.4 8.3 4.7 0.0 2014 2015 2016 2017 2018 2019 YTD
M&A (excluding LBOs) high-yield bond issuance - Quarterly
16.0
14.0
EUR bils. EUR 12.0
10.0
8.0 15.1 6.0 10.5 4.0
2.0 4.9 3.8 3.0 3.2 2.2 2.4 2.1 2.0 1.9 0.8 2.6 1.5 1.0 1.5 1.3 1.5 1.5 0.0 0.4 0.4 0.7 0.8 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 130 European Leveraged Insights – 3Q19 An Acuris Company
LBO high-yield bond issuance - Annual
12.0
10.0 EUR bils. EUR 8.0
6.0 11.0 10.5 4.0
5.2 2.0 3.4 3.2 2.2 0.0 2014 2015 2016 2017 2018 2019 YTD
LBO high-yield bond issuance - Quarterly
7.0
6.0
EUR bils. EUR 5.0
4.0
3.0 6.0
2.0 4.2 3.6 2.61 1.0 2.1 1.9 1.8 1.4 1.6 1.7 1.6 0.9 1.3 0.9 0.1 0.0 0.1 1.2 0.7 0.7 0.0 0.81 0.0 0.4 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 131 European Leveraged Insights – 3Q19 An Acuris Company
Sponsored high-yield bond issuance - Annual
25.0
20.0 EUR bils. EUR
15.0
10.0 19.1 19.0 19.1
11.8 5.0 9.6 9
0.0 2014 2015 2016 2017 2018 2019 YTD
Sponsored high-yield bond issuance - Quarterly
10.0 9.0
8.0 EUR bils. EUR 7.0 6.0 5.0 9.1 4.0 7.4 7.0 3.0 5.3 5.2 4.9 4.8 4.6 4.9 2.0 3.7 3.6 3.2 3.0 3.4 3.5 2.9 2.4 1.0 2.3 1.8 1.0 1.4 1.5 0.4 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 132 European Leveraged Insights – 3Q19 An Acuris Company
Bond refinancings - Annual
80.0
70.0
60.0 EUR bils. EUR 50.0
40.0 69.6 30.0 49.6 45.8 20.0 35.2 36.8 38.1 10.0
0.0 2014 2015 2016 2017 2018 2019 YTD
Bond refinancings - Quarterly
30.0
25.0 EUR bils. EUR 20.0
15.0 28.0 27.3
10.0 18.8 18.6 16.3 16.7 13.4 13.3 14.5 13.0 11.1 12.7 11.5 12.4 5.0 9.1 9.3 6.4 6.4 4.2 3.2 3.1 2.4 3.6 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 133 European Leveraged Insights – 3Q19 An Acuris Company
Loans refinanced by high-yield bonds - Annual
12.0
10.0 EUR bils. EUR 8.0
6.0 10.8 10.6 10.8 4.0 7.1
2.0 2.6 3 0.0 2014 2015 2016 2017 2018 2019 YTD
Loans refinanced by high-yield bonds - Quarterly
7.0
6.0
EUR bils. EUR 5.0
4.0
3.0 6.0
2.0 4.0 3.8 3.7 3.3 3.6 1.0 2.2 1.8 1.6 1.9 1.9 1.6 1.7 1.3 1.1 1.4 1.0 1.1 0.6 0.9 0.0 0.1 0.0 0.2 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 134 European Leveraged Insights – 3Q19 An Acuris Company
Reverse Yankee high-yield bond issuance - Annual
14.0 EUR bils. EUR 12.0
10.0
8.0
13.2 6.0
10.3 9.2 4.0
5.3 2.0
2.2 1.7
0.0 2014 2015 2016 2017 2018 2019 YTD
Source: Debtwire Par 135 European Leveraged Insights – 3Q19 An Acuris Company
Largest corporate high-yield bond deals issued in YTD 2019
Amount No. Borrower name Sector Borrower country Primary use of proceeds Pricing date (EURbn)
1 Altice Luxembourg Telecommunications: Hardware Luxembourg Refinancing Bond 2.83 03-May-19 2 Altice France Telecommunications: Hardware France Refinancing Bond 2.54 13-Sep-19 3 Exal Corp Manufacturing (other) Luxembourg Merger 2.54 19-Jul-19 4 IHO Verwaltungs Automotive Germany Refinancing Bond 2.06 22-May-19 5 Netflix Media USA General Corporate 2.00 24-Apr-19 6 Inmarsat Financial Services United Kingdom LBO 1.89 23-Sep-19 7 EG Group Energy United Kingdom Acquisition 1.64 03-May-19 8 Ardagh Group Construction Ireland (Republic) Refinancing Bond 1.61 30-Jul-19 9 ThyssenKrupp Industrial products and services Germany Refinancing Bond 1.50 18-Feb-19 10 Groupe Loxam Financial Services France Refinancing Loan 1.40 17-Jul-19 11 LeasePlan Corp Financial Services Netherlands Refinancing Bond 1.35 27-Mar-19 12 Telecom Italia Telecommunications: Carriers Italy General Corporate 1.25 08-Jan-19 13 Virgin Media Media United Kingdom Refinancing Bond 1.09 09-May-19 14 ThyssenKrupp Services (other) Germany General Corporate 1.00 18-Feb-19 15 Telecom Italia Telecommunications: Carriers Italy Refinancing Bond 1.00 09-Apr-19 16 AerCap Transportation Ireland (Republic) Refinancing Loan 0.98 16-Jan-19 17 Avolon Transportation Ireland (Republic) Refinancing 0.98 14-Feb-19 18 Elis Services (other) France Refinancing Loan 0.85 24-Sep-19 19 Intrum Financial Services Sweden Refinancing Bond 0.85 10-Sep-19 20 Orange Switzerland Telecommunications: Carriers Luxembourg Refinancing Bond 0.83 10-Sep-19
Source: Debtwire Par
136 European Leveraged Insights – 3Q19 An Acuris Company
Additional details on largest corporate high-yield bond deals issued in YTD 2019
Amount Amount Primary use of Coupon / S&P Moody’s Borrower name Ccy Pricing date Seniority/security YTM Price/OID Type Maturity date original (m) (EURm) proceeds margin rating rating
Inmarsat USD 2.08 1.89 23-Sep-19 LBO Senior Unsecured 6.750% 6.750% 100 Fixed 01-Oct-26 B+ B1 ThyssenKrupp EUR 1.50 1.50 18-Feb-19 Refinancing Bond Senior Unsecured 2.875% 2.930% 99.748 Fixed 22-Feb-24 BB Ba2 Altice Luxembourg EUR 1.40 1.40 03-May-19 Refinancing Bond Senior Unsecured 8.000% 8.000% 100 Fixed 15-May-27 B- Caa1 Telecom Italia EUR 1.25 1.25 08-Jan-19 General Corporate Senior Unsecured 4.000% 4.125% 99.436 Fixed 11-Apr-24 BB+ Ba1 Netflix Inc EUR 1.20 1.20 24-Apr-19 General Corporate Senior Unsecured 3.875% 3.875% 100 Fixed 15-Nov-29 BB- Ba3 Altice France EUR 1.00 1.00 13-Sep-19 Refinancing Bond Senior Unsecured 3.375% 3.375% 100 Fixed 15-Jan-28 B B2 ThyssenKrupp EUR 1.00 1.00 02-Sep-19 General Corporate Senior Unsecured 1.875% 1.986% 99.633 Fixed 06-Mar-23 BB- Ba3 Telecom Italia EUR 1.00 1.00 09-Apr-19 Refinancing Bond Senior Unsecured 2.750% 2.875% 99.32 Fixed 15-Apr-25 BB+ Ba1 Altice France USD 1.10 0.99 13-Sep-19 Refinancing Bond Senior Unsecured 5.500% 5.500% 100 Fixed 15-Jan-28 B B2 Exal Corp USD 1.05 0.94 19-Jul-19 Merger Senior Unsecured 5.500% 5.500% 100 Fixed 15-Aug-26 B+ B2 Intrum EUR 0.85 0.85 10-Sep-19 Refinancing Bond Senior Unsecured 3.000% 3.000% 100 Fixed 15-Sep-27 BB+ Ba2 Intrum EUR 0.80 0.80 25-Jul-19 Refinancing Bond Senior Unsecured 3.500% 3.500% 100 Fixed 15-Jul-26 BB+ Ba2 IHO Verwaltungs EUR 0.80 0.80 22-May-19 Refinancing Bond Senior Unsecured 3.625% 3.625% 100 Fixed 15-May-25 BB+ Ba1 INEOS Group EUR 0.77 0.77 08-Apr-19 Refinancing Bond Senior Unsecured 2.875% 2.875% 100 Fixed 01-May-26 BB+ Ba1 International Game EUR 0.75 0.75 11-Jun-19 Refinancing Bond Senior Unsecured 3.500% 3.500% 100 Fixed 15-Jun-26 BB+ Ba2 Technology Eircom Group EUR 0.75 0.75 26-Apr-19 Refinancing Bond Senior Unsecured 3.500% 3.500% 100 Fixed 15-May-26 B+ B1 Orano EUR 0.75 0.75 09-Apr-19 Refinancing Bond Senior Unsecured 3.375% 3.500% 99.236 Fixed 23-Apr-26 BB+ - LeasePlan EUR 0.75 0.75 27-Mar-19 Refinancing Bond Senior Unsecured 3.625% 3.625% 100 Fixed 03-Apr-24 BB+ B1 Nokia Oyj EUR 0.75 0.75 04-Mar-19 General Corporate Senior Unsecured 2.000% 2.081% 99.477 Fixed 11-Mar-26 BB+ Ba1 Virgin Media USD 0.83 0.74 09-May-19 Refinancing Bond Senior Unsecured 5.500% 5.500% 100 Fixed 15-May-29 BB- Ba3
Source: Debtwire Par 137 An Acuris Company
3Q19
High-yield bond pricing European Leveraged Insights – 3Q19 An Acuris Company
Fixed rate / Floating rate breakdown – 2019 to date
Fixed Rate Floating Rate
14%
86%
Source: Debtwire Par
139 European Leveraged Insights – 3Q19 An Acuris Company
New issue high-yield bond pricing* – Fixed-rate bonds
8
All
Sr. Unsecured
7 Sr. Secured
6.3
5.9 5.9 Weighted Avg. Yield Yield Maturity to(%) Avg. Weighted 6 5.8
5.7
5.5 5.5 5.4 5.1 5.4 5 4.9 5.1 5 4.8 4.6 4.5
4.3 4 4.1
3 2014 2015 2016 2017 2018 2019 YTD
*where yield to maturity available
Source: Debtwire Par 140 European Leveraged Insights – 3Q19 An Acuris Company
New issue high-yield bond pricing* – Fixed-rate bonds
9.0 All
Sr. Unsecured
8.0 Sr. Secured
7.0 Weighted Avg. Yield Yield Maturity to(%) Avg. Weighted 6.0
5.0
4.0
3.0
2.0 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
*where yield to maturity available
Source: Debtwire Par 141 European Leveraged Insights – 3Q19 An Acuris Company
Yield to maturity distribution*
30.0
2Q19 3Q19
25.0 Share of issuance (%) of issuance Share
20.0
15.0 28 24.5 23.6 21.1 10.0 20 20
14
5.0 10.0 9.7 6.8 4 4 5 4.3 3 3 0.0 0.0 0.0 <3 3 to <4 4 to <5 5 to <6 6 to <7 7 to <8 8 to <9 9 to <10 >=10
Yield (%)
*where yield to maturity available
Source: Markit, Debtwire Par
142 An Acuris Company
3Q19
High-yield bond stats by industry European Leveraged Insights – 3Q19 An Acuris Company
YTD 2019 high-yield bond issuance by industry
Industry Amount iss. (EURbn) No. of deals Share of iss. (%) Share of deals (%) Wtd. avg. YTM (%)
Financial Services 11.79 28 18.4% 17.3% 4.3% Energy 5.18 14 8.1% 8.6% 5.3% Services (other) 5.07 15 7.9% 9.3% 2.7% Leisure 4.74 14 7.4% 8.6% 4.9% Telecommunications: Hardware 4.69 3 7.3% 1.9% 5.2% Telecommunications: Carriers 4.67 7 7.3% 4.3% 3.7% Automotive 4.41 9 6.9% 5.6% 4.3% Media 4.02 6 6.3% 3.7% 4.7% Manufacturing (other) 3.54 5 5.5% 3.1% 5.2% Industrial products and services 3.45 9 5.4% 5.6% 2.9% Transportation 3.39 10 5.3% 6.2% 4.7% Chemicals and materials 2.15 7 3.4% 4.3% 3.3% Real Estate 1.94 13 3.0% 8.0% 3.2% Construction 1.93 3 3.0% 1.9% 4.2% Consumer: Other 0.92 3 1.4% 1.9% 7.7% Computer software 0.68 4 1.1% 2.5% 11.0% Medical: Pharmaceuticals 0.47 1 0.7% 0.6% - Consumer: Retail 0.42 3 0.7% 1.9% - Computer services 0.19 1 0.3% 0.6% - Consumer: Foods 0.15 2 0.2% 1.2% - Biotechnology 0.09 1 0.1% 0.6% - Agriculture 0.07 1 0.1% 0.6% - Computer: Hardware 0.03 1 0.0% 0.6% - Industrial: Electronics 0.01 1 0.0% 0.6% - Internet / ecommerce 0.01 1 0.0% 0.6% -
Source: Debtwire Par 144 European Leveraged Insights – 3Q19 An Acuris Company
High-yield bond issuance by industry – 2019 YTD
14.00
EUR bils. EUR 12.00
10.00
8.00
6.00 11.79
4.00
5.18 5.07 4.74 4.69 4.67 2.00 4.41 4.02 3.54 3.45 3.39 2.15 1.94 1.93 0.92 0.19 0.68 0.47 0.15
0.00 0.42
Media
Energy
Leisure
Real Estate Real
Automotive
Construction
Carriers
Transportation
services
Services (other) Services
Hardware
Consumer: Retail Consumer:
Consumer: Other Consumer:
Consumer: Foods Consumer:
Financial Services Financial
Computer services Computer
Computer software Computer
Telecommunications: Telecommunications:
Manufacturing (other) Manufacturing
Industrial products and products Industrial
Chemicals and materials and Chemicals Medical: Pharmaceuticals Medical:
Source: Debtwire Par 145 European Leveraged Insights – 3Q19 An Acuris Company
Financial services high-yield bond issuance - Annual
25.0
20.0 EUR bils. EUR
15.0
10.0 19.3
11.8 5.0 6.6 6.3 6.9 2.7 0.0 2014 2015 2016 2017 2018 2019 YTD
Financial services high-yield bond issuance - Quarterly
9.0 8.0
7.0 EUR bils. EUR 6.0 5.0 4.0 8.2 8.4 3.0 2.0 4.1 4.1 3.3 3.7 2.7 2.7 1.0 1.8 2.1 1.3 1.6 1.5 1.3 1.3 1.4 0.7 0.8 1.1 0.0 0.5 0.2 0.5 0.5 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 146 European Leveraged Insights – 3Q19 An Acuris Company
Energy high-yield bond issuance - Annual
8.0
7.0
6.0 EUR bils. EUR 5.0
4.0 6.8 6.5 3.0 5.9 5.8 5.2 2.0
1.0 1.7 0.0 2014 2015 2016 2017 2018 2019 YTD
Energy high-yield bond issuance - Quarterly
4.5 4.0
3.5 EUR bils. EUR 3.0 2.5 2.0 3.8 3.7 1.5 3.3 3.0 2.7 1.0 1.7 1.9 1.7 1.9 1.1 1.2 1.3 0.5 0.9 1.0 0.1 0.7 0.6 0.1 0.5 0.4 0.3 0.0 0.2 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 147 European Leveraged Insights – 3Q19 An Acuris Company
Leisure high-yield bond issuance - Annual
8.0
7.0
6.0 EUR bils. EUR 5.0
4.0 7.6 3.0 5.9 6.2 4.7 4.7 2.0 3.1 1.0
0.0 2014 2015 2016 2017 2018 2019 YTD
Leisure high-yield bond issuance - Quarterly
7.0
6.0
EUR bils. EUR 5.0
4.0
3.0 5.7
2.0 3.3 3.1 2.4 1.0 1.8 1.6 1.4 1.4 1.5 1.1 1.2 1.3 1.1 0.9 1.2 0.6 0.8 0.5 0.5 0.5 0.0 0.4 0.1 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 148 European Leveraged Insights – 3Q19 An Acuris Company
Construction high-yield bond issuance - Annual
10.0 9.0 8.0
EUR bils. EUR 7.0 6.0 5.0 9.3 4.0 8.0 3.0 4.6 2.0 3.6 1.0 1.9 1.3 0.0 2014 2015 2016 2017 2018 2019 YTD
Construction high-yield bond issuance - Quarterly
4.5 4.0
3.5 EUR bils. EUR 3.0 2.5 4.2 2.0 3.9 1.5 2.5 2.3 2.2 2.3 1.0 1.9 1.6 1.8 1.6 0.5 1.2 0.8 0.7 0.4 0.4 0.5 0.1 0.0 0.0 0.0 0.1 0.2 0.0 0.3 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 149 European Leveraged Insights – 3Q19 An Acuris Company
Industrial products & services high-yield bond issuance - Annual
10.0 9.0 8.0
EUR bils. EUR 7.0 6.0 5.0 8.6 9.0 4.0 3.0 2.0 4.2 3.9 3.5 1.0 1.0 0.0 2014 2015 2016 2017 2018 2019 YTD
Industrial products & services high-yield bond issuance - Quarterly
6.0
5.0 EUR bils. EUR 4.0
3.0 5.4 2.0 4.3
2.3 1.0 2.2 2.2 2.0 1.9 1.5 1.0 0.9 1.0 0.8 1.1 0.8 0.6 0.8 0.7 0.5 0.0 0.0 0.0 0.0 0.0 0.3 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 150 European Leveraged Insights – 3Q19 An Acuris Company
Transportation high-yield bond issuance - Annual
9.0
. 8.0 bils
7.0 EUR 6.0
5.0
4.0 8.2
3.0
2.0 3.2 3.4 3.4 1.0 1.9 1.8 0.0 2014 2015 2016 2017 2018 2019 YTD
Transportation high-yield bond issuance - Quarterly
3.0
. bils
2.5 EUR 2.0
1.5 2.8 2.6 2.2 1.0 2.0 1.8 1.3 0.5 1.1 0.8 0.7 0.7 0.7 0.7 0.7 0.5 0.6 0.5 0.6 0.5 0.3 0.3 0.4 0.0 0.0 0.2 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 151 European Leveraged Insights – 3Q19 An Acuris Company
Automotive high-yield bond issuance - Annual
16.0
14.0
12.0 EUR bils. EUR 10.0
8.0 14.5 6.0 11.7 10.6 4.0 6.6 2.0 4.4 2.7 0.0 2014 2015 2016 2017 2018 2019 YTD
Automotive high-yield bond issuance - Quarterly
9.0 8.0
7.0 EUR bils. EUR 6.0 5.0 4.0 8.5 3.0 6.3 5.5 2.0 4.0 3.6 3.1 2.6 1.0 2.0 2.2 2.2 1.6 1.5 1.4 1.4 1.0 0.6 0.9 0.9 0.0 0.0 0.5 0.0 0.4 0.4 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 152 European Leveraged Insights – 3Q19 An Acuris Company
Chemicals & materials high-yield bond issuance - Annual
8.0
. 7.0 bils
6.0 EUR 5.0
4.0 6.9 3.0 5.5 2.0 3.2 2.6 1.0 2.2 1.4 0.0 2014 2015 2016 2017 2018 2019 YTD
Chemicals & materials high-yield bond issuance - Quarterly
3.5 .
bils 3.0
EUR 2.5
2.0
1.5 3.1 2.3 2.4 2.4 2.3 1.0 1.7 1.4 1.2 1.2 0.5 1.0 1.1 0.3 0.7 0.3 0.3 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 153 European Leveraged Insights – 3Q19 An Acuris Company
Telecom carriers high-yield bond issuance - Annual
25.0 .
bils 20.0 EUR
15.0
10.0 20.5 16.1 15.9
5.0 8.1 4.7 1.9 0.0 2014 2015 2016 2017 2018 2019 YTD
Telecom carriers high-yield bond issuance - Quarterly
18.0 .
bils 16.0
14.0 EUR 12.0 10.0 8.0 16.5 6.0 10.7 9.7 4.0 2.0 2.2 3.0 3.2 3.0 2.7 2.3 1.2 1.2 2.1 1.3 1.7 1.5 1.3 1.1 0.0 0.7 0.8 0.9 - 0.3 - 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 154 European Leveraged Insights – 3Q19 An Acuris Company
Consumer retail high-yield bond issuance - Annual
7.0
6.0
EUR bils. EUR 5.0
4.0
3.0 5.8
2.0 3.9 3.9
1.0 1.3 0.7 0.0 0.4 2014 2015 2016 2017 2018 2019 YTD
Consumer retail high-yield bond issuance - Quarterly
2.5
2.0 EUR bils. EUR
1.5
2.3 2.3 1.0 2.0 1.8 1.3 0.5 1.0 0.8 0.9 0.6 0.7 0.6 0.6 0.5 0.4 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 - 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 155 European Leveraged Insights – 3Q19 An Acuris Company
Media high-yield bond issuance - Annual
6.0
5.0 EUR bils. EUR 4.0
3.0 5.2 4.4 2.0 4.0 3.6
1.0 1.4 0.5 0.0 2014 2015 2016 2017 2018 2019 YTD
Media high-yield bond issuance - Quarterly
4.5 4.0
3.5 EUR bils. EUR 3.0 2.5
2.0 4.0 3.5 1.5 3.0 2.6 1.0 0.5 1.1 1.0 0.8 0.0 0.0 0.0 0.0 0.8 0.0 0.0 0.0 0.0 0.6 0.5 0.4 0.3 0.3 0.0 0.2 0.2 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 156 An Acuris Company
3Q19
High-yield bond stats by country of risk European Leveraged Insights – 3Q19 An Acuris Company
High-yield bond issuance by country – YTD 2019
Country Amount iss. (EURbn) No. of deals Share of iss. (%) Share of deals (%) Wtd. avg. YTM (%)
United Kingdom 12.31 28 19.2% 17.3% 5.3%
France 9.89 14 15.5% 8.6% 3.2%
Germany 8.46 13 13.2% 8.0% 4.1%
Netherlands 6.52 8 10.2% 4.9% 4.8%
Italy 5.86 17 9.2% 10.5% 3.6%
Ireland (Republic) 5.01 6 7.8% 3.7% 4.1%
Norway 4.52 24 7.1% 14.8% 3.7%
Sweden 3.18 24 5.0% 14.8% 4.7%
Spain 2.25 6 3.5% 3.7% 5.9%
Switzerland 2.08 4 3.2% 2.5% 11.0%
Finland 1.51 5 2.4% 3.1% 2.1%
Luxembourg 1.40 1 2.2% 0.6% 8.0%
Denmark 0.34 4 0.5% 2.5% 5.5%
Belgium 0.30 4 0.5% 2.5% 4.0%
Cyprus 0.14 1 0.2% 0.6% -
Monaco 0.10 1 0.2% 0.6% -
Portugal 0.10 1 0.2% 0.6% -
Malta 0.04 1 0.1% 0.6% -
Source: Debtwire Par
158 European Leveraged Insights – 3Q19 An Acuris Company
High-yield bond issuance by country – 2019 YTD
14.00
12.00 EUR bils. EUR
10.00
8.00
6.00 12.31
9.89 8.46 4.00 6.52 5.86 5.01 4.52 2.00 3.18 2.25 2.08
0.00
Italy
Spain
France
Sweden
Norway
Germany
Switzerland
Netherlands
United Kingdom United Ireland (Republic) Ireland
Source: Debtwire Par 159 European Leveraged Insights – 3Q19 An Acuris Company
United Kingdom high-yield bond issuance - Annual
30.0
25.0 EUR bils. EUR 20.0
15.0 25.1 21.8 10.0 17.2 13.9 12.0 11.9 5.0
0.0 2014 2015 2016 2017 2018 2019 YTD
United Kingdom high-yield bond issuance - Quarterly
12.0
10.0 EUR bils. EUR 8.0
6.0 9.9 4.0 8.5 6.6 7.1 6.0 5.5 5.8 4.7 5.0 5.4 5.2 2.0 4.3 3.8 4.5 4.0 3.1 2.6 3.0 2.1 1.6 1.0 1.3 0.9 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 160 European Leveraged Insights – 3Q19 An Acuris Company
Italy high-yield bond issuance - Annual
18.0
16.0
14.0 EUR bils. EUR 12.0
10.0
8.0 16.5 13.5 6.0 11.8 11.1 9.2 4.0 5.9 2.0
0.0 2014 2015 2016 2017 2018 2019 YTD
Italy high-yield bond issuance - Quarterly
12.0
10.0 EUR bils. EUR 8.0
6.0 11.2 8.8 4.0 6.2 5.3 2.0 3.9 3.7 2.7 2.9 2.5 1.8 1.9 2.1 1.8 2.5 2.1 1.5 1.1 1.6 1.3 1.5 1.3 0.0 0.3 0.1 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 161 European Leveraged Insights – 3Q19 An Acuris Company
France high-yield bond issuance - Annual
25.0
20.0 EUR bils. EUR
15.0
10.0 19.9
14.0 11.8 5.0 9.8 10.9 9.9
0.0 2014 2015 2016 2017 2018 2019 YTD
France high-yield bond issuance - Quarterly
14.0
12.0
EUR bils. EUR 10.0
8.0
6.0 12.6
4.0 8.4 5.2 5.0 5.3 5.1 2.0 4.3 4.6 4.3 2.9 3.4 3.5 2.6 0.5 0.2 2.2 1.4 0.4 1.1 1.1 0.1 1.3 0.0 0.8 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 162 European Leveraged Insights – 3Q19 An Acuris Company
Netherlands high-yield bond issuance - Annual
12.0
10.0 EUR bils. EUR 8.0
6.0 10.6 4.0 7.7 7.3 6.7 6.5 2.0 3.9
0.0 2014 2015 2016 2017 2018 2019 YTD
Netherlands high-yield bond issuance - Quarterly
5.0 4.5
4.0 EUR bils. EUR 3.5 3.0 2.5 4.7 4.5 2.0 4.3 3.4 1.5 3.0 3.3 1.0 1.9 2.1 1.5 1.6 1.5 1.8 1.1 1.2 1.3 1.3 0.5 0.8 0.9 1.0 0.6 0.3 0.5 0.0 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 163 European Leveraged Insights – 3Q19 An Acuris Company
Germany high-yield bond issuance - Annual
16.0
14.0
12.0 EUR bils. EUR 10.0
8.0 14.6 6.0 11.0 11.0 4.0 7.8 8.5 5.3 2.0
0.0 2014 2015 2016 2017 2018 2019 YTD
Germany high-yield bond issuance - Quarterly
6.0
5.0 EUR bils. EUR 4.0
3.0 5.7 5.3 4.6 4.4 4.7 2.0 4.2 3.5 3.1 2.9 2.3 2.3 1.0 1.9 1.9 1.9 1.7 1.4 1.3 1.4 1.5 0.8 0.7 0.5 0.0 0.3 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 164 European Leveraged Insights – 3Q19 An Acuris Company
Spain high-yield bond issuance - Annual
8.0
7.0
6.0 EUR bils. EUR 5.0
4.0 7.3 3.0
4.3 4.6 2.0 4.1 3.7 1.0 2.3
0.0 2014 2015 2016 2017 2018 2019 YTD
Spain high-yield bond issuance - Quarterly
4.0
3.5
EUR bils. EUR 3.0
2.5
2.0 3.6 3.3 1.5 2.5 2.3 1.0 1.9 2.0 1.7 1.5 1.3 0.5 1.2 0.8 0.7 0.5 0.6 0.7 0.6 0.0 0.3 0.3 0.3 0.0 0.2 0.0 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 165 European Leveraged Insights – 3Q19 An Acuris Company
Switzerland high-yield bond issuance - Annual
8.0
7.0
6.0 EUR bils. EUR 5.0
4.0 7.1 3.0 6.0
2.0 4.3 2.7 2.5 1.0 2.1
0.0 2014 2015 2016 2017 2018 2019 YTD
Switzerland high-yield bond issuance - Quarterly
4.0
3.5
EUR bils. EUR 3.0
2.5
2.0 3.3 3.4 1.5
1.0 2.1 1.6 1.4 1.5 1.3 1.2 1.3 0.5 1.1 1.0 1.0 0.6 0.0 0.7 0.7 0.0 0.7 0.6 0.7 0.0 0.0 0.6 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Source: Debtwire Par 166 An Acuris Company
3Q19
Secondary market high yield bond snapshot European Leveraged Insights – 3Q19 An Acuris Company
HY Bond Biggest monthly ADVANCERS
ISIN Issuer Maturity Coupon Currency Amount Outstanding Defaulted YTM Price Price at prior month end % Change
XS1458414023 LECTA S.A. 01/08/2022 EUR 225,000,000 N 0.00% 43.09 33.49 28.68%
XS1458413728 LECTA S.A. 01/08/2023 6.5 EUR 375,000,000 N 34.21% 43.11 33.63 28.20%
FR0010154385 CASINO GUICHARDPERRACHON 31/12/2099 EUR 600,000,000 N 0.00% 41.98 35.43 18.49%
XS1710653210 Takko Luxembourg 2 SCA 15/11/2023 5.375 EUR 285,000,000 N 6.60% 95.63 86.47 10.59%
XS1710653483 Takko Luxembourg 2 SCA 15/11/2023 EUR 225,000,000 N 0.00% 93.02 84.46 10.13%
XS1710653137 Takko Luxembourg 2 SCA 15/11/2023 5.375 EUR 285,000,000 N 6.66% 95.43 86.83 9.91%
XS0880578728 EnQuest PLC 15/04/2022 7 GBP 171,851,269 N 13.55% 86.34 81.02 6.58%
XS1654544136 Diamond BC BV 15/08/2025 5.625 EUR 450,000,000 N 7.47% 91.34 85.80 6.46%
XS1654544219 Diamond BC BV 15/08/2025 5.625 EUR 450,000,000 N 7.47% 91.34 85.80 6.46%
FR0011606169 CASINO GUICHARDPERRACHON 31/12/2099 EUR 750,000,000 N 0.00% 61.97 58.30 6.30%
XS1251078777 Kirk Beauty One GmbH 15/07/2023 8.75 EUR 335,000,000 N 16.24% 79.38 74.78 6.14%
XS1251078694 Kirk Beauty One GmbH 15/07/2023 8.75 EUR 335,000,000 N 16.29% 79.25 74.78 5.98%
XS1308316568 Garfunkelux Holdco 2 SA 01/11/2023 11 GBP 196,500,000 N 11.71% 97.71 92.46 5.68%
US00676LAA44 Adecoagro SA 21/09/2027 6 USD 500,000,000 N 6.69% 95.81 90.76 5.57%
USL00849AA47 Adecoagro SA 21/09/2027 6 USD 500,000,000 N 6.69% 95.81 90.76 5.57%
XS1308317889 Garfunkelux Holdco 2 SA 01/11/2023 11 GBP 196,500,000 N 11.82% 97.38 92.46 5.32%
FR0012369122 CASINO GUICHARDPERRACHON 07/02/2025 3.58 EUR 444,200,000 N 6.20% 88.37 84.47 4.62%
XS1756324411 MATALAN FIN PLC 31/01/2023 6.75 GBP 350,000,000 N 9.47% 92.36 88.60 4.24%
XS1756324924 MATALAN FIN PLC 31/01/2023 6.75 GBP 350,000,000 N 9.47% 92.36 88.60 4.24%
FR0012074284 CASINO GUICHARDPERRACHON 05/08/2026 4.048 EUR 508,300,000 N 6.26% 87.95 84.45 4.14%
US458204AQ79 INTELSAT LUXEMBOURG SA 01/06/2023 8.125 USD 1,000,000,000 N 14.09% 83.34 80.11 4.04%
XS1820759147 LA FINANCIERE ATALIAN 15/05/2025 5.125 EUR 350,000,000 N 11.66% 73.58 70.75 4.01%
XS1605600532 LA FINANCIERE ATALIAN 15/05/2024 4 EUR 625,000,000 N 11.43% 73.87 71.08 3.93%
XS1605695813 LA FINANCIERE ATALIAN 15/05/2024 4 EUR 625,000,000 N 11.43% 73.87 71.08 3.93%
US37953TAB17 Glob Ship Lease Inc 15/11/2022 9.875 USD 340,000,000 N 8.04% 104.95 101.17 3.74%
Source: Markit 168 European Leveraged Insights – 3Q19 An Acuris Company
HY Bond Biggest monthly DECLINERS
ISIN Issuer Maturity Coupon Currency Amount Outstanding Defaulted YTM Price Price at prior month end % Change
XS1531306717 THOMAS COOK GROUP PLC 15/06/2022 6.25 EUR 750,000,000 Y 0.00% 6.62 21.81 -69.66%
XS1531324298 THOMAS COOK GROUP PLC 15/06/2022 6.25 EUR 750,000,000 Y 0.00% 6.62 21.81 -69.66%
XS1733229410 THOMAS COOK FIN 2 PLC 15/07/2023 3.875 EUR 400,000,000 Y 0.00% 6.58 17.42 -62.25%
XS1733231663 THOMAS COOK FIN 2 PLC 15/07/2023 3.875 EUR 400,000,000 Y 0.00% 6.58 17.42 -62.25%
XS1733958927 ProGest SpA 15/12/2024 3.25 EUR 250,000,000 N 16.55% 54.76 87.12 -37.14% XS1733973306 ProGest SpA 15/12/2024 3.25 EUR 250,000,000 N 16.55% 54.76 87.12 -37.14%
XS1028959754 Aldesa Finl Services SA 01/04/2021 7.25 EUR 250,000,000 N 89.28% 38.44 55.88 -31.21%
XS1713475058 Safari Verwaltungs GmbH 30/11/2022 5.375 EUR 350,000,000 N 21.33% 64.59 88.06 -26.66%
XS1028946777 Pizzaexpress Fing 1 PLC 01/08/2022 8.625 GBP 200,000,000 N 77.91% 24.73 30.34 -18.49%
XS1028948047 Pizzaexpress Fing 1 PLC 01/08/2022 8.625 GBP 200,000,000 N 77.91% 24.73 30.34 -18.49% SCHMOLZ BICKENBACH DE000A19FW97 15/07/2022 5.625 EUR 350,000,000 N 21.52% 67.90 82.55 -17.74% Luxembourg Fin SA XS1000389608 ASTALDI S per Azioni 01/12/2020 7.125 EUR 37,470,000 Y 0.00% 19.08 23.19 -17.70% US947075AE71 Weatherford Itl Ltd 15/03/2038 7 USD 500,000,000 Y 0.00% 35.21 42.28 -16.71% US94707VAD29 Weatherford Itl Ltd 15/04/2042 5.95 USD 550,000,000 Y 0.00% 35.18 42.22 -16.69%
US947075AG20 Weatherford Itl Ltd 01/03/2039 9.875 USD 250,000,000 Y 0.00% 35.19 42.14 -16.50%
US947075AJ68 Weatherford Itl Ltd 15/06/2021 7.75 USD 750,000,000 Y 0.00% 35.62 42.46 -16.12%
US947075AL15 Weatherford Itl Ltd 15/02/2024 9.875 USD 298,000 Y 0.00% 35.45 42.00 -15.58% US947075AN70 Weatherford Itl Ltd 15/02/2024 9.875 USD 789,702,000 Y 0.00% 35.45 42.00 -15.58% USG9508CAA20 Weatherford Itl Ltd 15/02/2024 9.875 USD 298,000 Y 0.00% 35.45 42.00 -15.58% US94707VAC46 Weatherford Itl Ltd 15/04/2022 4.5 USD 644,000,000 Y 0.00% 35.26 41.69 -15.42% US947074AK66 Weatherford Intl LLC 15/06/2037 6.8 USD 255,000,000 Y 0.00% 35.75 42.15 -15.19% US94707VAA89 Weatherford Itl Ltd 15/09/2020 5.125 USD 365,107,000 Y 0.00% 35.04 41.25 -15.06% US639365AG06 Navios Maritime Hldgs Inc 15/01/2022 7.375 USD 614,300,000 N 35.85% 57.88 66.90 -13.49% USY62196AD53 Navios Maritime Hldgs Inc 15/01/2022 7.375 USD 614,300,000 N 35.85% 57.88 66.90 -13.49% XS1756721418 KME SE 01/02/2023 6.75 EUR 300,000,000 N 12.58% 84.54 95.98 -11.92%
Source: Markit 169 An Acuris Company
European Leveraged Insights
3Q19
DEBTWIRE PAR DEBTWIRE SALES Colm (C.J.) Doherty, Global Head of Primary Angus Codd, Head of Sales, Debtwire EMEA Market Analysis, +44 (0)20 3741 1002, +1 212 390 7838 [email protected] [email protected] Felipe Poveda, Head of Fixed Income Sales, Sadaf Khan, Global Head of Fixed Income Data, +44 (0)20 3741 1258, [email protected] [email protected] Darren Maharaj, Head of EMEA Fixed Income Jonathan Reed, Managing Director Data, +1 212 686 5418, [email protected] [email protected] Jason Huang-Jones, Head of APAC Fixed Income Olivia Cummins, PR Executive Data, +44 (0)20 3741 1129 [email protected] [email protected] Nancy Tai, Head of Americas Fixed Income Data, [email protected] Diana Apedu, Market Analyst [email protected] Shivangi Dattani, Manager of European Credit Research, [email protected] Adrian Lok, Senior Market Analyst Mario Mariott, Senior Market Analyst [email protected] Victor Mukete, Market Analyst [email protected] Wafaa Makhrobi, Market Analyst [email protected]
170 An Acuris Company
Debtwire is an Acuris company
EMEA Americas Asia 10 Queen Street Place 1501 Broadway Suite 1602-6 London 8th Floor Grand Millennium Plaza EC4R 1BE New York 181 Queen’s Road United Kingdom NY 10036 Central Hong Kong +44 (0)203 741 1000 NY 10013 USA + 612 9002 3131 [email protected] +1 212 500 7537 [email protected] [email protected]
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