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NORTH AMERICA came just before the period under review. But private equity seller Bain returned later AWARDS in 2017 for a follow-on offer in the same stock. Both deals were a testament to RBC’s deep relationship with Bain and its Cana- COUNTRY dian equity distribution power. CANADA’S BEST The bank’s M&A practice – it posted a INVESTMENT BANK top-ranked 20% market share for com- RBC CAPITAL MARKETS pleted deals with any Canadian involve- ment – has also helped the rm. RBC sits above all others for completed M&A and only Goldman Sachs ranked above it for announced deals. ECM deal ow has often mature economy and been M&A-driven, and a bank without limited room for domestic cross-border reach and the advisory exper- Derek Neldner, RBC Capital Markets: growth tends to push “We sit alone in this space of being a tise to match can nd it arrives late to the Canada’s biggest rms leading Canadian franchise with global nancing party. distribution and connectivity” into foreign forays. And When RBC advised SNC-Lavalin on its Afortunately for RBC Capital Markets, acquisition of WS Atkins for C$4.2 billion, they often choose to do that supported by capable stacks up best is in its work taking completed in July 2017, it notched up Canada’s best investment bank. Canadian issuers to other debt markets. It nancing mandates along the way, includ- “We sit alone in this space of being a ranks top in leading Canadian bond issues ing a C$1.3 billion subscription receipts leading Canadian franchise with global in foreign currencies, ahead of Bank of offering. It is a measure of how far RBC has distribution and connectivity,” says Derek America Merrill Lynch (BAML) and with come since the nancial crisis – it is hard to Neldner, recently promoted to be global almost double the share of the next ranked imagine the bank being on a short list for a head of investment banking. Canadian rm, BMO Capital Markets. company looking to buy a business in the If one deal summed up the bank’s year, A deal like Precision Drilling’s $400 mil- US or the UK a decade ago. it was probably Permira’s $2.3 billion sale lion high-yield bond might not be striking RBC was also sole bookrunner and agent of vitamins business Atrium Innovations to at rst glance, but it is an example of the for an extraordinary transaction that saw Nestlé, where RBC advised Permira. The bank being moved to lead-left after a series two rst nation entities – Fort McKay and story begins in February 2014 when RBC of transactions where it sat on the right, Mikisew Cree – take a 49% stake in an oil advised on the original take-private, but it showing how it can be rewarded for making storage facility, Suncor’s East Tank Farm ticks all the boxes: nancial sponsor work, its Canadian clients feel prioritized. Development, for C$503 million. Backing global connectivity (US-Canada-Switzer- RBC’s equity capital markets business the acquisition was a C$545 million issue land) and a dual-track process, where the – it nished the awards period top of the of 2041 senior secured notes, sold by a com- bank was positioned to complete either Dealogic Canadian ECM league table – is bined joint venture and structured by RBC. option. where the years spent cultivating a private The purchase was the biggest rst-nation The connectivity theme also sat well equity franchise are really paying off. RBC business investment in Canada. in the bank’s debt capital markets fran- pounced on bankers leaving global competi- RBC considers itself a global competi- chise during the period under review, with tors at the time of the nancial crisis and tor; its challenge is to do this while keeping cross-border deals providing some of the was also in the rare position of being able focus on the mid-market that will supply it highlights of the year. The crop of maples to back that up by supporting clients with with steady revenues and the champions of (Canadian dollar issues for non-Canadian balance sheet. the future. Neldner recognizes this, noting issuers) included debuts from Apple, Mc- Monetizations and exits were a key that entrepreneurs are unlikely to look Donalds, Pepsi, Walt Disney and Thames theme in last year’s Canadian ECM activity, kindly on banks that only become interested Water – all deals where RBC was a lead. and RBC’s relationships with sellers outside once their company hits the billion-dollar The standouts were Apple’s C$2.5 billion Canada combined with domestic distribu- revenue mark. That he sees the contrast in seven-year (the biggest single tranche corpo- tion prowess have continued to put the terms that go beyond mere size bodes well rate deal in Canada) and Disney’s C$1.25 bank in a good spot. for the franchise. billion seven-year. The IPO of clothing company Canada “It’s not small versus big; it’s now versus Where the bank’s claim to be globally Goose, where RBC was a joint bookrunner, the future,” he says. 1 Reprinted from July 2018 Copyright ©Euromoney magazine www.euromoney.com.

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