EUROPEAN HIGH YIELD REPORT

Transcription

1 EUROPEAN HIGH YIELD REPORT HY 212 EDITION Your Debtwire Analytics Team Head of Research - Europe Attila Takacs +44 () [email protected] Analysts Charu Singh [email protected] Denitsa Stoyanova [email protected] Miguel Molina [email protected] Nazokat Faizullaeva [email protected] Rashmi de Costa [email protected] Thomas Alline [email protected] Research Editor Alison Lock [email protected] Managing Director Jonathan Reed [email protected] Sales Angus Codd + 44 () [email protected] Global Head of Research Howard Tang [email protected]

2 Debtwire Analytics This report features content from Debtwire Analytics, an expansion of Debtwire s distressed and leveraged finance coverage that will launch as a stand-alone service in mid-summer 212. Debtwire Analytics is a global data and proprietary research platform that provides timely and accurate credit information on non-investment grade, high yield and distressed companies. Designed specifically to meet the unique needs of our subscribers, Debtwire Analytics offers the ability to analyse, compare and search all publicly available information on a covered company, in addition to critical private information gathered exclusively by our team of analysts. The platform s continually expanding universe will initially cover 2,5 companies across the globe, and their debt instruments. We re excited to offer all of our subscribers a complimentary trial of Debtwire Analytics immediately following the launch. Please stay tuned for additional information, and feel free to contact [email protected] with any questions about this service. Page 2

3 Table of Contents Introduction Highlights Sector Statistics...6 Bond Issuance by Industry and Per Year Industry and Country Overview Volume and Value of Bond Issues by Industry and Country Market Overview..8 Monthly Issuance by Volume and Value Withdrawn Issuance Maturity and Seniority..9 Volume and Value of Issuance by Maturity Maturity and Seniority Profiles Use of Proceeds and Currency... 1 Use of Proceeds Issuance by Currency Yields and Ratings Bond Yield To Maturity vs. Crossover Issuance by Interest Rate, Rating and Seniority Debutant Issuers Debutant Issuance Debutant Use of Proceeds Moody s and S&P Issue Ratings 13 Issuance by Rating Category and Rating Agency Moody s and S&P Rating Statistics Issuance by YTM, Rating and Seniority Underwriter Bank League Table 15 League Table of Bond Underwriters by Market Share, Volume and Value Outstanding High Yield Bonds 16 Amount Outstanding by Volume, Value and Currency Amount Outstanding by Sector and Rating Spread Analysis 18 Initial Spreads vs. Credit Rating First and Second Quarters Appendices 19 Debtwire Europe High Yield Issuance & Pipeline Criteria Full List of High Yield Issuance Page 3

4 Highlights HY 212 European High Yield Market Highlights 4, 3, Amount in EURm Number of deals 12 9 Europe s primary high-yield bond market continued to be impacted by the sovereign debt crisis in the Eurozone in the first half of 212. The crisis appeared to recede in January after the European Central Bank injected liquidity into the region s banks, and the market opened strongly. However, elections in France and Greece and the deteriorating health of Spain s banks generated intense volatility and significantly reduced the volume of issuance by the end of the period. 2, 1, 6 3 Debtwire Europe covered 73 high yield bond issues with a total value of EUR 25.56bn from 47 companies during the first half. Issuance was lower than in 1H11, when companies raised EUR 37.72bn from 18 high yield bonds, but was a significant improvement on the second half of 211, when EUR 1.6bn of bonds came to market. HY11 HY12 Issuance window opens wide in February... Refinance debt Acquisition GCP Dividend and Securitisation 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % HY11 HY12 New issuance peaked in February with 2 deals worth a total EUR 7.44bn brought to market. This followed EUR 5.34bn of issuance via 15 bonds in January, and companies issued a further EUR 5.86bn of notes in March. The glut of deals put an end to the slump at the end of 211, when the market closed for weeks at a time....but slams shut again by June However, only eight issues priced in April and nine in May, as investors fretted over the Eurozone s lack of progress in resolving the challenges it faced. Issuance declined further in June, with only EUR 1.91bn raised via six bonds, reflecting growing unease over a potential Eurozone break up or Greek exit from the currency union. Three issuers withdrew their bonds in the first half as a result of the heightened volatility and weak demand, an increase from one bond in the prior year. The bonds were pulled in March, April and May, when conditions became more difficult. Bond-backed M&A at lowest ebb since 29; companies refinance debt 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % EUR USD GBP Other HY11 HY12 High yield bond issuers used only EUR 3.29bn of new debt or 13% of issuance to fund acquisitions in the first half of 212, the lowest proportion since 29 and a significant fall from EUR 6.97bn, or 18% of issuance, used to finance M&A deals a year earlier. Three quarters of bond issuance, or a total of EUR 19.18bn, was used to refinance outstanding debt in the first half. Of this, EUR 14.9bn or 58% went to repay loans, while another EUR 4.27bn, or 17%, refinanced bonds. Companies used 11% (EUR 2.75bn) of all issuance for general corporate purposes in 1H12, up from just 2% a year earlier. US funds soak up dollar bonds, but sterling issuance declines Companies issued more bonds denominated in US dollars in the first half compared with a year ago, in response to robust demand from US funds and lower borrowing costs for dollar issuance. Dollar bonds represented 43% of issuance, up from 28% in 1H11, as several companies upsized the dollar tranche of a multi-currency bond issue. In contrast, sterling notes represented a smaller proportion of high-yield issuance in the first half than a year ago, falling to 7% from 22% in 1H11. Euro-denominated bonds accounted for 48% of issuance, down from 49% in 1H11, and further evidence of a long-term downward trend. Germany ( 5.36bn) Other ( 5.4bn) Spain ( 1.54bn) UK ( 5.3bn) USA ( 1.6bn) Netherlands ( 1.84bn) Switzerland ( 2.14bn) France ( 3.2bn) Northern European companies busiest in the primary market German and UK-based companies brought the highest number and value of bonds to market during the period. UK companies such as carmaker Jaguar Land Rover, cable group Virgin Media and holiday parks operator Center Parcs Group issued 13 bonds worth a total EUR 5.3bn, while German groups including auto-parts maker Schaeffler and medical care provider Fresenius issued 12 notes worth a total of EUR 5.36bn. French high-yield issuers were also active in the first half and brought about 12% (EUR 3.2bn) of all issuance to market during the period. Page 4

5 Highlights HY 212 European High Yield Market Highlights Economic headwinds blow out subordinated notes in favour of secured debt Senior Unsecured 44% Senior Secured 55% Only one subordinated bond came to market in the first half, as the poor macroeconomic environment impacted issuers performance and reduced investor appetite for riskier low-ranked debt. Subordinated debt represented just 1% of all issuance, down from 3% in 1H11 when five subordinated issues were priced. The bond issued was the EUR 324m 11.5% note due in 217 from Europcar Groupe. Instead, more than half of all issuance was senior secured, as companies raised a total of EUR 13.92bn through 4 such bonds. Another EUR 11.31bn was issued via 32 issues of senior unsecured notes, which represented 44% of total issuance, up from 38% in 1H11. Senior Subordinated 1% Risk-off mode prompts a rise in shorter-term maturities The market experienced a decline in long-dated bond issuance and a rise in shorter maturities during the first half of 212, a further indication of the risk aversion characterising the market. Investors favoured shorter tenors due to their lower risk, while issuers sought to limit their exposure to the high coupons that investors required. Only 18% of bonds were issued with maturities of eight years or longer, down from 39% in the first half of 211, while 28% of notes issued matured in five years or less, up from only 9.5% a year earlier. Seven-year notes remained the most popular maturity for issuance, as in previous years, but declined to EUR 1.8bn raised via 29 issues, from EUR 17.42bn in 1H11. CCC (8) NR (2) The proportion of floating rate notes (FRN) increased compared with the previous year, but was still low compared with pre-crisis levels in 26 and 27. Five FRNs were brought to market with a total value of EUR 1.32bn, and paid between Euribor+525bps and E+65bps. BB (28) B (34) Uptick in high-quality bonds as challenging conditions put off weaker credits The proportion of bond issuance rated at the high end of the high-yield spectrum increased in the first half of 212 from a year earlier, signalling that market conditions were making it harder for weaker issuers to come to market. About 38% of bonds were assigned a high-quality BB category rating by Moody s or Standard & Poor s (between BB+ and BB for S&P and Ba1 and Ba3 for Moody s), up from 22% in the first half of 211. New bonds rated in the B category accounted for 46% of all issuance, lower than in previous years, while the proportion of new bonds assigned a low CCC -category rating was 11% of the total, down from 13% a year earlier. Deutsche Bank takes top market share of high yield bond underwriting Deutsche Bank was ranked first in the Debtwire Analytics league table of underwriters on European high yield bond issues in 1H12, with a 9.7% share of the market. The bank worked on 37 bond issues during the period with a total value of EUR 2.49bn, and improved its ranking from second a year earlier. Morgan Stanley and Barclays Capital were notable movers up in the ranking compared with the previous year. However, banks such as Credit Suisse, BNP Paribas, Bank of America Merrill Lynch and Societe Generale fell in the ranking as they worked on fewer deals during the period. This report presents information and analysis on the European high yield bond market in the first six months of 212. Page 5

6 Sector Statistics European High Yield Bond Issuance by Industry Industry No. of Issuers No. of bonds Amount Issued (EURm) Average Coupon Average OID Average YTM Automotive 5 1 4, % % 217 Cable 6 6 2, % % 222 Chemicals 3 5 2, % % 219 Construction & Homebuilding % % 216 Energy Services 4 5 1, % % 217 Financial Services % % 219 Healthcare 2 6 2,575 7.% % 219 Leisure 4 5 1, % % 219 Manufacturing % % 215 Metals & Mining % % 217 Packaging % % 217 Paper & Forest Products 3 5 1, % % 219 Services 5 8 2, % % 218 Technology 1 2 1, % % 219 Telecommunications 4 8 1, % % 218 Transportation % % 217 TOTAL , % % 219 Maturity (mode) The average yield to maturity (YTM) during 1H12 for euro-denominated notes due 219 was 8.41% vs. 8.2% in 1H11. The most active industries for issuance were automotive, with 1 issues worth a total EUR 4.78bn, and the services and telecommunications industries, with eight issues each that totalled EUR 2.25bn and EUR 1.83bn, respectively. By value, the cable and chemicals industries were the next-biggest issuers, at EUR 2.77bn and EUR 2.66bn, respectively. The range for coupon, original issuer discount (OID) and YTM for deals brought in 1H12 were: Coupon: 4.% % OID: YTM: 4.% - 14.% Five floating rate notes were issued in 1H12. European High Yield Bond Issuance Per Year Amount in EURm Number of deals 7, 14 6, 12 5, 1 4, 8 3, 6 2, 4 1, HY11 HY12 Page 6

7 Industry & Country Overview Volume of High Yield Bond Issues by Industry and Country Automotive 1 Telecommunications 8 Services 8 Healthcare 6 13 Cable 6 12 Transportation Paper & Forest Products Leisure 5 8 Energy Services 5 Chemicals 5 5 Technology Packaging Metals & Mining Construction & Homebuilding 2 Financial Services 1 Manufacturing 1 Value of High Yield Bond Issues by Industry and Country (EURm) Automotive 4,778 Cable 2,772 Chemicals 2,656 Healthcare Services 2,252 2,575 5,32 5,363 Telecommunications 1,833 Energy Services 1,683 Paper & Forest Products Leisure 1,644 1,546 3,18 Technology Transportation Construction & Homebuilding Metals & Mining Packaging 1, ,354 1,536 1,597 1,836 2,137 Financial Services 239 Manufacturing 2 Page 7

8 Market Overview Monthly Issuance by Volume and Value (EURm) 7, 2 Amount in EURm Number of deals 21 6, , 15 4, 3, 2, 5,338 7,437 5, , 2,752 2,269 1,96 3 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Europe s high yield bond market opened on a bullish note in January as the Eurozone sovereign debt crisis appeared to recede, causing an uptick in risk appetite that put an end to the slump in issuance experienced at the end of 211. Fifteen deals came to market in January, raising a total of EUR 5.34bn, followed by another 2 bonds worth EUR 7.44bn in February, when the market peaked. Issuance levels remained robust in March, with EUR 5.86bn of bonds brought to market through 15 issues. However, issuers and investors became more wary at the start of the second quarter as the focus turned to the upcoming presidential election in France as well as a general election in Greece, and the market began to slow. Eight high-yield bond issues worth EUR 2.75bn priced in April, when concerns re-emerged over sovereign borrowing costs in weaker Eurozone economies, and the Dutch government collapsed in disagreement over the national budget. The downward trend in issuance became more pronounced in May and June as attention turned to the worsening condition of Spain s banks, and preparations for a second Greek election after an inconclusive outcome to the first. Nine bonds were issued in May, raised a total EUR 2.27bn, and issuance fell to six issues in June that raised EUR 1.91bn as confidence was sapped by growing fears of a potential Eurozone break up or Greek exit from the currency union. Withdrawn issuance Company Date Currency Seniority Maturity Industry Country Purpose Rating (S&P / Moodys) Intermediate Capital Group Mar-12 GBP Senior Unsecured 217 Financial Services UK BBB- / NR Ascometal SAS Apr-12 EUR Senior Secured 22 Manufacturing France Refinance Debt B- / B3 Monier Group GmbH May-12 EUR Senior Secured 219 Construction & Homebuilding Germany Refinance Debt B- / NR Volatility in the market and falling demand for high-risk paper resulted in three bond issues being withdrawn in the first half of 212, a significant increase from just one bond pulled in 1H11. Intermediate Capital Group, the UK-based mezzanine finance provider, abandoned plans to issue a sterling-denominated senior unsecured 217 bond in March 212 due to poor market conditions, but indicated that it plans to return to the market when the environment improves. French steelmaker Ascometal pulled its euro-denominated eight year senior secured notes in April, despite improving the bond s security and tightening debt-incurrence tests to sweeten the offering. In May, German roofing materials manufacturer Monier also postponed plans to issue a seven-year EUR 25m senior secured bond. The group withdrew the deal five days after closing books as volatility in the market increased, and agreed an amend and extend on its loans instead. Page 8

9 Maturity & Seniority Volume of High Yield Bond Issues by Maturity Value of High Yield Bond Issues by Maturity (EURm) HY12 HY , , 1,8 25 8, , 4, 6,45 3,611 3, , ,489 1yrs 2yrs 3yrs 4yrs 5yrs 6yrs 7yrs 8yrs 9yrs 1yrs 1yrs 2yrs 3yrs 4yrs 5yrs 6yrs 7yrs 8yrs 9yrs 1yrs Maturity Profile 1% 9% 8% 7% 6% 5% 4% 3% <5yrs 5yrs 6yrs 7yrs 8yrs >8yrs N/A A larger proportion of new bond issuance in the first half of 212 had shorter maturities than in 211 or 21. Five-year bonds represented 24% of all issuance, raising EUR 6.5bn via 17 issues. This was a significant increase on 1H11, when 12 issues of five-year bonds came to market, raising EUR 3.37bn (9% of total 1H11 issuance). Seven-year notes were the most popular tenor for issuance in 1H12, continuing the trend experienced in 211 and 21. Companies raised EUR 1.8bn through 29 seven-year issues, (39% of total issuance). However, this was lower than in 1H11, when EUR 17.4bn was issued, representing 46% of issuance. 2% 1% % FY5 FY6 FY7 FY8 FY9 FY1 FY11 HY12 Fewer bonds with eight-year or longer maturities were issued in 1H12 than in previous years. Only EUR 4.6bn was raised via 12 issues (18% of total issuance) at these tenors, less than in 1H11, when EUR 14.56bn was raised. Seniority Profile Senior Secured Senior Unsecured Subordinated HY 212 1% 9% 8% 7% 6% Senior Unsecured 44% Senior Secured 55% 5% 4% N/A 3% 2% 1% Senior Subordinated 1% % FY5 FY6 FY7 FY8 FY9 FY1 FY11 HY12 Companies issued senior secured and unsecured debt in 1H12 in similar proportions as in the previous three years. Issuers raised EUR 13.92bn from 4 senior secured bonds, equivalent to 54% of all issuance by value (1H11: 55%), and 32 senior unsecured bonds, which raised EUR 11.31bn (44% of total value, up from 38% in 1H11). Europcar Groupe was the only company to issue a subordinated bond in 1H12, representing 1% of all issuance in the period. This was a decline from five subordinated notes issued in 1H11, and about 3% of issuance by value in previous years. Europcar issued a EUR 324m 11.5% note due in 217. Page 9

10 Use of Proceeds & Currency Use of Proceeds Refinance loans Refinance bonds Acquisition General Corporate Purposes Dividend Share repurchase & Securitisation HY 212 1% 9% 8% 7% Refinance loans 58% Securitisation 1% General Corporate Purposes 11% Acquisition 13% 6% 5% N/A 4% 3% 2% 1% % FY5 FY6 FY7 FY8 FY9 FY1 FY11 HY12 Refinance bonds 17% Three quarters of the proceeds of high-yield bond issuance in 1H12 were used by companies to refinance outstanding debt, reaffirming the trend experienced in the past three years. Issuers raised EUR 19.18bn of new bonds for refinancing (75% of total issuance by value), through 5 issues out of the total 73 during the period. Companies also obtained EUR 22.8bn of new leveraged loans in 1H12 to refinance outstanding bonds and loans, a significant increase from EUR 6.26bn in 1H11. More than half of bond issuance in 1H12 (58%) was used to refinance loans, in line with the past three years, although the total value declined to EUR 14.9bn from EUR 22.95bn in 1H11. A further 17% of total issuance (EUR 4.27bn) was used to refinance outstanding bonds. Issuers raised EUR 3.29bn in the high yield market to finance acquisitions in 1H12 (13% of total value), a significant decline from EUR 6.97bn (18%) in 1H11. It was the lowest proportion used for M&A since 29 (full year), when just 12% of bonds funded dealmaking. The companies that tapped the bond market for M&A in 1H12 were Orange Switzerland, which financed its takeover by Apax Partners with three EUR 71mequivalent bonds; and Four Seasons Health Care, which issued two notes totalling GBP 525m to fund its leveraged buyout by Terra Firma. In contrast, proceeds used to fund general corporate purposes rose to 11% (EUR 2.75bn) of total issuance in 1H12, from just 2% in 1H11. Center Parcs UK issued the only notes used for securitisation, pricing a GBP 28m % senior secured bond due 218 in February. Issuance by Currency EUR USD GBP Other HY 212 1% 9% 8% 7% 6% 5% N/A EUR denominated 47% CHF NOK denominated denominated 2% 1% GBP denominated 7% 4% 3% 2% 1% % FY5 FY6 FY7 FY8 FY9 FY1 FY11 HY12 USD denominated 43% Companies shifted their issuance currency towards US dollars in 1H12 as a result of robust demand for high yield paper in the US, and the proportion of bonds denominated in USD rose to 43% of the total issued, from 28% in 1H11. Euro-denominated debt accounted for 47% of high yield issuance by value in 1H12, a fall from 49% in 1H11 and in line with years of previous declines. However, sterling-denominated notes accounted for a significantly smaller proportion of issuance in the first half of 212 than the previous year, falling to 7% from 22% in 1H11. There were five sterling-denominated high yield bonds issued in the first half of 212, with a value of EUR 1.83bn. Three of these issues were priced in the first quarter, and in the second quarter Four Seasons Healthcare issued two notes with a total value of GBP 525m in June. Two thirds of the US dollar issuance (2 of 3 bonds; total USD 14.32bn) were brought to market in the first quarter. They included Fresenius Medical Care s two issues worth USD 1.5bn; Cableuropa s USD 1bn 8.875% note; and a USD 1bn 8.375% bond by Ineos Group. In 2Q12, USD issues totalled EUR 2.96bn, and included Lawson Software s USD 1.15bn 9.375% notes due 219; a USD 775m-equivalent issue by Vantage Drilling Company, and USD 775m 7.5% notes due 22 issued by Ineos. Three bonds were issued in alternative currencies during the period. In January, Norwegian group Teekay Offshore Partners placed a NOK 6m senior secured 217 bond, and in February Orange Switzerland issued a CHF 45m 6.75% senior secured note due 219. In May, Teekay LNG Partners issued a NOK 6m senior unsecured 217 note. Page 1

11 Yields & Ratings Bond Yield To Maturity vs. Crossover Sen. Secured Sen. Unsecured Itraxx 14% 12% 1% 8% 6% 4% 2% % Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 The average yield to maturity for issuance in 1H12 was 8.41%. Europcar had the highest YTM, of 14%, on its EUR 324m 11.5% senior subordinated notes due 217, while HeidelbergCement had the lowest, of 4%, on its EUR 3m 4% four-year senior unsecured notes. Bond Issuance by Interest Rate 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Fixed Rate Issuance Floating Rate Issuance N/A FY5 FY6 FY7 FY8 FY9 FY1 FY11 HY12 Five bond issues with a total value of EUR 1.32bn were issued with a floating rate in the first half of 212, a greater proportion than in 29 and 21, but still far below the peak levels seen in the years prior to the financial crisis. More than 93% of issuance was at a fixed rate, or 68 of 73 bonds issued. Two of the floating rate notes (FRNs) came from first-time issuers. Telecoms operator Orange Switzerland brought a E+5.25% EUR 15m senior secured bond due 219, and security provider Securitas Direct issued a EUR 1m E+6.5% senior secured note due 218, both in February. Paper manufacturer Lecta issued the largest FRN, with a EUR 39m six-year bond at three-month Euribor +5.25%, in 2Q12. Bond Issuance by Rating and Seniority Sen. Secured Sen. Unsecured 1 BB+/Ba1 9 BB/Ba2 8 BB-/Ba3 7 B+/B1 6 B/B2 5 B-/B3 4 CCC+/Caa1 3 CCC/Caa2 2 CCC-/Caa3 1 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Issuance from credits of all high-yield ratings was robust in the first quarter, but as the market became more volatile from April onward there was a clear decline in the number of higher-rated credits issuing bonds. Most issuance in 2Q12 was from mid-rated credits (the B rating group), indicating that higher-rated companies may have accessed alternative funding sources or cash reserves rather than issue bonds. Page 11

12 Debutant Issuers European High Yield Debutant Issuance HY 212 HY 211 Debutant Issuers 32% (15) Debutant Issuers 39% (31) Existing Issuers 68% (32) Existing Issuers 61% (49) Almost a third of companies that issued bonds in the first half of 212 were first-time issuers (32%), or 15 out of 47 issuers. This was a slight relative decrease compared to 1H11, when 39% of issuers (31 out of 8) came to market for the first time. First-time issuers priced 27 issues totalling EUR 9.5bn in 1H12, representing 35% of total issuance by value. The largest first-time issuer in 1H12 was German autoparts manufacturer Schaeffler, which refinanced its 214 loans with four bonds totalling EUR 2.4bn in February. US group Lawson Software also raised EUR 1.1bn-equivalent in March to refinance debt, issuing two senior unsecured notes comprising a USD 1.15bn seven-year bond yielding 9.375% and a EUR 25m seven-year bond yielding 1%. The proportion of first-time issuance rated in the BB category increased significantly YoY to 22% (6 out of 27 bonds) in 1H12, from 9% in the previous half year. More than half (56%) of the issuance, or 15 out of 27 bonds, was rated in the B category, lower than the 75% granted a B rating in 1H11 (33 of 44 bonds). However, the number of bonds rated CCC also increased YoY, to 22% of first-time issuance in 1H12, compared with just 14% in 1H11. Senior secured debt represented two thirds of first-time high-yield issuance in 1H12, at 67% of all bonds issued, an increase from 54% in 1H11. All other debutants (33%) issued senior unsecured notes, a decline from 41% in 1H11. The average coupon of all first-time issuance in 1H12 was 9.19% with an average price of Debutant Use of Proceeds HY 212 HY 211 Securitisation 4% Acquisition 18% Acquisition 29% General Corporate Purposes 9% Refinance debt 69% Refinance debt 67% Dividend 4% The proportion of first-time bond issuance that companies used to refinance outstanding debt stayed almost flat, at 69% of all issuance by value, in the first half of 212 (67% in 1H11). However, there was a clear decline in the level of proceeds used to fund M&A activities, to 18% of issuance by value (6 out of 27 bonds) in 1H12, compared with 29% in 1H11 (11 out of 44 bonds). The proportion of first-time issuance used for general corporate purposes in 1H12 was 9%, while 4% of proceeds were used for securitisation. Page 12

13 Moody s & S&P Issue Ratings Number of Bond Issues by Rating Category CCC B BB 1% 9% 8% % 6% 29 5% 4% 3% N/A % 1% % FY5 FY6 FY7 FY8 FY9 FY1 FY11 HY12 The first half of 212 saw an increase in the number of bonds rated at the higher end of the high-yield spectrum by either Standard & Poor s or Moody s, with 38% of notes assigned a BB group rating, up from 22% in 1H11. Almost half of issuance (46%) was rated in the single B category (between B+ and B- for S&P and B1 and B3 for Moody s). Notes rated CCC accounted for 11% of all issuance, close to the 13% level in 1H11. Only one of the 73 high yield issues placed in 1H12 was not rated by either agency - Teekay LNG Partners NOK 7m senior unsecured notes. The rating most often assigned by Moody s to new bonds in 1H12 was B1, given to 2 out of the 69 high yield bonds that the agency rated. Moody s assigned a higher number of Ba3 equivalent ratings than S&P, but also rated one bond lower than S&P, at Caa2 - the USD 475m 12.75% senior unsecured notes due 22 issued by CEVA Logistics in January 212. S&P most often assigned new bonds a BB rating in 1H12, putting 16 issues into this category out of 63 that it rated. Its lowest rating was the CCC+ rating assigned to security provider Securitas Direct s EUR 271.5m 8.75% senior secured 218s issued in February, while chemical group Clariant s EUR 5m 5.625% senior unsecured 217s were rated highest at BBB-, one notch higher than the Ba1 rating assigned to the bond by Moody s. Number of Bond Issues by Rating Agency S&P HY12 Moody's HY BBB-/Baa3 BB+/Ba1 BB/Ba2 BB-Ba3 B+/B1 B/B2 B-/B3 CCC+Caa1 CCC/Caa2 CCC-/Caa3 Page 13

14 Moody s & S&P Issue Ratings Moody s Rating Statistics Rating No. of Issues Amount (EURm) Average YTM Baa Ba1 5 2,1 4.86% Ba2 13 4, % Ba3 12 4, % B1 2 8, % B2 8 2, % B3 3 1,8 8.55% Caa1 7 2, % Caa % Caa Total 69 24,53 S&P Rating Statistics Rating No. of Issues Amount (EURm) Average YTM BBB % BB+ 5 1, % BB 16 5, % BB- 7 1, % B+ 9 3, % B 15 6, % B- 9 3, % CCC % CCC CCC Total 63 22,887 Bond Issues by YTM, Rating and Seniority Sen. Secured Sen. Unsecured 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.%.% CCC-/Caa3 CCC/Caa2 CCC+/Caa1 B-/B3 B/B2 B+/B1 BB-/Ba3 BB/Ba2 BB+/Ba1 Page 14

15 Underwriter Bank League Table European High Yield Bond Underwriters 1H12 1H11 Underwriting bank Rank Market share Value (EURm) Volume of Deals Rank Market share Δ in market share (ppt) Deutsche Bank 1 9.7% 2, % -1.1 JP Morgan 2 6.3% 1, % -1.7 Barclays Capital 3 6.3% 1, % 1.6 Goldman Sachs 4 6.2% 1, % -1.6 Morgan Stanley 5 5.8% 1, % 3.3 Citigroup 6 5.8% 1, %.5 RBS 7 4.9% 1, %.8 Credit Suisse 8 4.9% 1, % -8. BNP Paribas 9 3.9% % -2.8 Credit Agricole 1 3.7% % -.2 Commerzbank % % 2.4 Unicredit % % 1.6 Bank of America Merrill Lynch % % -.9 HSBC % %.1 UBS % %.3 Lloyds TSB 16 3.% % 1.3 Societe Generale % % -.7 Natixis % %.5 Landesbank Baden-Württemberg 19 2.% % 1.9 ING 2 1.4% % -1.5 TOTAL 1% 25, % Deutsche Bank was ranked first in the Debtwire Analytics league table of European high yield bond underwriters at the end of 1H12, with a 9.7% share of the market. The bank worked on 37 bond issues during the period with a total value of EUR 2.49bn, and improved its ranking from second place a year earlier. Morgan Stanley and Barclays Capital were notable movers up in the ranking compared with the previous year. The US bank gained ten places to be ranked fifth, increasing its market share to 5.8% from 2.5% a year earlier, while Barclays Capital climbed from seventh to third place as it gained 6.3% of the market in 1H12. Commerzbank also gained nine places, after more than doubling its market share to 3.6%. However, banks such as Credit Suisse, BNP Paribas, Bank of America Merrill Lynch and Societe Generale fell several places in the ranking as they worked on fewer deals during the period. Credit Suisse slipped to rank eighth as its market share declined to 4.9% in 1H12 from 12.9% a year ago. BNP Paribas came in four places lower in 1H12, while BofA Merrill Lynch and Societe Generale each declined by five places. Landesbank Baden-Württemberg was a new entrant into the table, up to place 19 from 48 in 1H11. Its robust performance, alongside those of Deutsche Bank and Commerzbank, indicate the relative strength of German banks in the market at a time when other banks experienced declines in their activity in the high yield market. League Table Criteria: Credit is awarded to all lead and joint bookrunners equally. There is no limit to the number of bookrunners that may be listed on any issuance deal. If there is no bookrunner title on a deal, credit is awarded to lead managers. Page 15

16 Outstanding European High Yield Bonds Amount Outstanding by Volume and Value (EURm) Amount Outstanding Number of deals 5, , , ,68 2, 4, , ,922 18,532 31,288 25, ,744 8,38 8,371 9,599 2, Thereafter* * Thereafter includes three perpetual bonds Companies in Debtwire s European high-yield universe had 515 bonds outstanding with a total value of EUR bn at the end of June 212. The average size of each outstanding bond was EUR 44m. As a result of refinancing activity by issuers during the period, only EUR 33.74bn or 15% of all outstanding European high yield notes remains due to mature by the end of 214. Of this, EUR 22.92bn matures in 214, compared with EUR 2.78bn in 212 and EUR 8.4bn in 213. More than half (52%) of all outstanding bonds, with a total value of EUR bn, fall due between 216 and 218, creating a maturity wall for issuers that may require refinancing. A little less than 9% of this amount (EUR 1.8bn) was issued in 1H12. Companies had 63 bonds outstanding totalling EUR 31.29bn due in 216, 89 bonds worth EUR 45.68bn due in 217, and 93 bonds with a value of EUR 4.87bn due in 218 at the end of the period. The most common maturity for new issuance in 1H12 was 219 (29 bonds worth a total EUR 1.8bn), which took the total outstanding value of bonds due in seven years time to EUR 25.93bn. Only 4% or EUR 9.6bn of all outstanding bonds fall due in more than nine years. Amount Outstanding by Currency USD denominated 33% GBP denominated 7% Other denominations 1% Euro-denominated debt represented 59% of all outstanding European high-yield bonds at the end of 1H12, equating to EUR bn of the total EUR bn. The vast majority of the euro -denominated debt was issued in prior years, as only 9% was placed during 1H12. Companies had 131 US dollar-denominated bonds outstanding totalling EUR 75.16bn at the end of 1H12, equivalent to 33% of the total debt. Of this, 14% of bonds were issued in the first half of 212. EUR denominated 59% Only 7% of the outstanding high yield bonds were denominated in sterling, totalling EUR 15.65bn, while 1% (six bonds) of all outstanding notes were denominated in alternative currencies. Page 16

17 Outstanding European High Yield Bonds Amount Outstanding by Sector (EURm) Amount Outstanding per Sector (EURm) Number of deals per Sector 6, 18 Change industry to sector , , , 6 2, 46,255 47,915 43,54 41,38 4 1, 24, Basic Materials Communications Consumer, Cyclical Consumer, Noncyclical 6,683 5,135 7,327 1,925 1,923 Diversified Energy Financial Industrial Technology Utilities The cyclical consumer sector had the largest value of high yield bonds outstanding, with 18 notes at a total value of EUR 47.92bn at the end of the first half of 212. The communications sector also had high levels of bond debt, at EUR 46.26bn, while non-cyclical consumer companies also had 85 notes worth a total EUR 43.54bn outstanding. The industries with least outstanding bond debt were utilities and the technology sector, with just over EUR 1.92bn outstanding each; and energy, which had EUR 5.14bn of bond debt. Amount Outstanding by Rating (EURm) S&P Moody's 6, 5, 47,685 44,529 4, 32,316 3, 24,649 27,567 25,281 26,565 24,48 24,17 2, 2,972 21,243 14,152 12,917 15,397 14,396 1, 6,134 3, BBB-/Baa3 BB+/Ba1 BB/Ba2 BB-/Ba3 B+/B1 B/B2 B-/B3 CCC+/Caa1 CCC/Caa2 CCC-/Caa3 The rating category with most outstanding high yield bond debt at the end of 1H12 was the BB grouping as rated by S&P, with EUR 99.9bn outstanding in 188 bonds. Moody s rated 163 bonds totalling EUR 92.24bn in the same category ( Ba1 to Ba3 ). The next largest group was B rated debt as rated by S&P, which had EUR 75.89bn outstanding, and EUR 56.61bn as rated by Moody s. Moody s rated more bonds at the low end of the spectrum compared with S&P; there were 66 bonds with a total value of EUR 28.5bn in the Caa grouping, compared with just EUR 7.75bn outstanding through 21 bonds rated CCC by S&P. Moody s did not rate 119 of the 515 outstanding bonds, while S&P did not rate 88 bonds. Page 17

18 Spread Analysis Initial Spreads vs. Credit Rating - First Quarter Numericable 36m % 219 Securitas 271.5m 8.75% 218 Center Parcs 28m % 218 Viridian 313m % 217 Viridian $25m % 217 Ceva $475m 12.75% 22 1 Lowell 2m 1.75% 219 Spie 175m 11% Cable & Wireless $4m 8.75% 22 Clariant AG 5m 5.625% 217 Faurecia 14m 9.375% 216 Orange CHF45m 6.75% 219 Ardagh $16m 7.375% 217 Orange 18m E+5.25% 219 Fresenius $8m 5.625% 219 Stora Enso 5m 5.5% 219 Rexel $4m 6.125% 219 Weinerberger 2m 5% 215 Fresenius $7m 5.875% 222 Fresenius 25m 5.25% 219 Codere $3m 9.25% 219 Ceva $325m 8.375% 217 Schaeffler $6m Welltec $325m 7.75% 217 8% 219 Ineos $1bn 8.375% 219 Fiat 85m HeidelbergCement 3m 4% 216 Afren $3m1.25% 219 Jaguar 5m 8.25% 22 Eco-bat 3m 7.75% 217 7% 217 Obrascon 3m 7.625% 22 Gategroup 35m 6.75% 219 Orange 15m E+5.25% 219 Securitas 5m 8.75% 218 Ono $1bn 8.875% 218 Schaeffler 4m 8.75% 219 Ardagh $26m 9.125% 22 Schaeffler 8m 7.75% 217 Schaeffler $5m 8.5% 219 Orange CHF225m 8.25% 22 Securitas 1m E+6.5% 218 Ineos 5m E+6% 219 Lawson 25m 1% 219 Taminco $4m 9.75% 22 Lawson $1.15bn 9.375% 219 Fresenius 5m 4.25% BB+/Ba1 BB/Ba2 BB-/Ba3 B+/B1 B/B2 B-/B3 CCC+/Caa1 CCC/Caa2 Initial Spreads vs. Credit Rating - Second Quarter Europcar 324m 11.5% Cableuropa $31m 8.875% 218 Schmolz 258m 9.875% 219 Four Seasons GBP175m 12.25% Sappi $3m 8.375% 219 Peogeot 6m 5.625% 217 Wind 4m 7.375% 218 Rexel $1m 6.125% 219 Wind $4m 7.25% 218 Four Seasons 35m 8.75% 219 Lecta 2m 8.875% 219 Faurecia 25m 8.75% 219 Sappi $4m 7.75% 217 Carlson Wagonlit 3m 7.5% 219 Schaeffler 3m 6.75% 219 Ineos $775m 7.5% 22 KDG 4m 6.5% 217 Carlson Wagonlit $465m 6.875% 219 Swissport $13m 8.875% 218 Lecta 39m E+5.5% BB+/Ba1 BB/Ba2 BB-/Ba3 B+/B1 B/B2 B-/B3 CCC+/Caa1 CCC/Caa2 Page 18

19 Appendices Debtwire Europe High Yield Issuance & Pipeline Criteria Debtwire Europe s high yield issuance and pipeline research tracks new high yield bond issuance under the following criteria: Issue size of EUR 1m or greater and publicly traded; Debt issued and/or marketed in western Europe; Speculative grade corporate family rating and issue rating by both S&P and Moody s. Excludes any split-rated Crossover issuers and/or issues; Non-rated bonds are included in the table if YTM at issuance is comparable with rated sub-investment grade notes. Debtwire issuance and pipeline research does not include any of the following security types: Convertible bonds; Equipment trust certificates, enhanced equipment trust certificates and pass through certificates; Asset-backed securities. The data is derived from a combination of Debtwire intelligence and company announcements. Page 19

20 High Yield Bond Issuance HY 212 ANALYTICS Final Pricing Instrument Rating Issuer Status Date Priced Planned Actual Price Talk Coupon Price YTM Seniority Security Maturity Call Protection Lead Book- Runner Joint Book- Runners Industry Use of proceeds/ Notes Moody's S&P Recovery Rating Clariant AG Priced 17/1/212 EUR 5m 5.625% % Senior Unsecured 217 BNP Paribas, Citigroup, Unicredit Commerzbank, SEB Chemicals Proceeds for the issue out of Clariant Finance (Luxembourg) S.A. will be used for general corporate purposes. Ba1 BBB- Fresenius Medical Care AG & Co KgaA Priced 17/1/212 USD 7m 6% 5.875% % Senior Unsecured 222 NC-L Deutsche Bank, BofA Merrill Lynch, Credit Agricole, Unicredit Bayern LB, DZ, Helaba, Mediobanca, Raiffeisen, Societe Generale, WestLB Healthcare Proceeds will be used Refinance Debt / Acquisition / GCP. Issued by Fresenius Medical Care US Finance II, Inc. Ba2 BB 3 Fresenius Medical Care AG & Co KgaA Priced 17/1/212 USD 8m 5.75% 5.625% % Senior Unsecured 219 NC-L Deutsche Bank, BofA Merrill Lynch, Credit Agricole, Unicredit Bayern LB, DZ, Helaba, Mediobanca, Raiffeisen, Societe Generale, WestLB Healthcare Proceeds will be used Refinance Debt / Acquisition / GCP. Issued by Fresenius Medical Care US Finance II, Inc. Ba2 BB 3 Fresenius Medical Care AG & Co KgaA Priced 18/1/212 EUR 25m EUR 25m 5.25% % Senior Unsecured 219 NC-L Deutsche Bank, BofA, Merrill Lynch, Credit Agricole, Unicredit Bayern LB, DZ, Helaba, Mediobanca, Raiffeisen, Societe Generale, WestLB Healthcare Proceeds will be used Refinance Debt / Acquisition / GCP. Issued by FMC Finance VIII S.A. Ba2 BB 3 Teekay Offshore Partners Priced 19/1/212 NOK 6m Senior Unsecured 217 DNB Markets, Nordea Markets Transportation Proceeds will be used for General Corporate Purposes. Ba2 BB+ Wienerberger AG Priced 19/1/212 EUR 5m EUR 2m 5% % Senior Unsecured 215 NC-L BNP Paribas Fortis KBC Manufacturing Proceeds used for general corporate purposes Ba1 BB Taminco N.V. Priced 2/1/212 USD 452m USD 4m 9.75%-1% 9.75% % Second Secured Lien Senior 22 NC-3 Credit Suisse UBS, Citigroup, Nomura, Deutsche Bank, Goldman Sachs Chemicals The second-priority senior secured bond will will part finance Apollo Management s acquisition of the group from CVC Partners for EUR 1.1bn Caa1 B- 6 Cable & Wireless Communications Plc Priced 2/1/212 USD 35m USD 4m 8.75%-9% 8.75% % Senior Secured 22 NC-4 Barclays, HSBC, JPMorgan, RBS Cable refinance debt. Issued out of Sable International Finance Limited. Ba2 BB * US Market deals excluded from all debt calculations Page 2

21 High Yield Bond Issuance HY 212 ANALYTICS Final Pricing Instrument Rating Issuer Status Date Priced Planned Actual Price Talk Coupon Price YTM Seniority Security Maturity Call Protection Lead Book- Runner Joint Book- Runners Industry Use of proceeds/ Notes Moody's S&P Recovery Rating Ardagh Glass Ltd Priced 2/1/212 USD 16m USD 16m 7.375% 7.375% % Senior Secured 217 NC-2 Citigroup Barclays Capital, HSBC Packaging Proceeds used for acquisition and general corporate purposes. Ba3 BB- Ardagh Glass Ltd Priced 2/1/212 USD 25m USD 26m 9.125% % Senior Unsecured 22 NC-3 Citigroup Barclays Capital, HSBC Packaging Proceeds used for acquisition and general corporate purposes. B3 B- Welltec A/S Priced 25/1/212 USD 325m USD 325m 8.25% 8% % Senior Secured 219 NC-3 Credit Suisse, Goldman Sachs DNB Markets Services fund a special distribution to shareholders and refinance existing debt. B1 BB- 4 Cableuropa (Grupo Corporativo Ono SA) Priced 26/1/212 USD 4m USD 1bn 8.875% % Senior Secured 218 NC-2 JPMorgan BNP Paribas, Deutsche Bank, BBVA, BofA Merrill Lynch, Credit Agricole, Goldman Sachs, ING, Morgan Stanley, Natixis, Santander, Societe Generale Cable refinance debt. Mirror note of its existing EUR 1bn 8.875% 218 senior secured notes. Issued out of Nara Cable Funding Limited. B1 B CEVA Logistics B.V. Priced 3/1/212 USD 3m USD 325m 8.625% 8.375% % Senior Secured 217 NC-1 Credit Suisse Deutsche Bank, Goldman Sachs, JPMorgan, Morgan Stanley, UBS Transportation refinance EUR denominated debt. Ba3 B+ 2 CEVA Logistics B.V. Priced 3/1/212 USD 525m USD 475m 12.75% 12.75% % Senior Unsecured 22 NC-3 Credit Suisse Deutsche Bank, Goldman Sachs, JPMorgan, Morgan Stanley, UBS Transportation refinance EUR denominated debt Caa2 B- 5 UGC Europe Inc Priced 31/1/212 USD 75m 6.875% % Senior Secured 222 NC-5 JPMorgan BNP Paribas, Citigroup, Credit Agricole, Deutsche Bank, Morgan Stanley, RBS, UBS Cable refinance debt Ba3 Franz Haniel & Cie GmbH Priced 1/2/212 EUR 4m 6.325% % Senior Unsecured 218 Societe Generale, ING, Deutsche Bank Services The company will use the proceeds to launch a tender offer for its outstanding 6.75% 214 bonds. Ba2 BB+ Codere SA Priced 2/2/212 USD 25m USD 3m 9.25% 9.25% % Senior Unsecured 219 NC-3 Credit Suisse Barclays Capital, Itau Leisure acquire an additional 35.8% stake in Mexicobased gaming business Icela and GCP. B2 B 3 Page 21

22 High Yield Bond Issuance HY 212 ANALYTICS Final Pricing Instrument Rating Issuer Status Date Priced Planned Actual Price Talk Coupon Price YTM Seniority Security Maturity Call Protection Lead Book- Runner Joint Book- Runners Industry Use of proceeds/ Notes Moody's S&P Recovery Rating Schaeffler GmbH Priced 2/2/212 EUR 8m 8.25% 7.75% % Senior Secured 217 NC-L Deutsche Bank Commerzbank, LBBW, RBS, Unicredit Automotive Part of a credit agreement replacing existing loans maturing in June 214. Issued out of Schaeffler Finance B.V. B1 B 3 Schaeffler GmbH Priced 2/2/212 USD 6m % 7.75% % Senior Secured 217 NC-L JP Morgan Commerzbank, LBBW, RBS, Unicredit Automotive Part of a credit agreement replacing existing loans maturing in June 214. Issued out of Schaeffler Finance B.V. B1 B 3 Schaeffler GmbH Priced 2/2/212 EUR 4m % 8.75% % Senior Secured 219 NC-4 Deutsche Bank Commerzbank, LBBW, RBS, Unicredit Automotive Part of a credit agreement replacing existing loans maturing in June 214. Issued out of Schaeffler Finance B.V. B1 B 3 Schaeffler GmbH Priced 2/2/212 USD 5m % 8.5% 1 8.5% Senior Secured 219 NC-4 JP Morgan Commerzbank, LBBW, RBS, Unicredit Automotive Part of a credit agreement replacing existing loans maturing in June 214. Issued out of Schaeffler Finance B.V. B1 B 3 Orange Switzerland Priced 3/2/212 CHF 325 CHF 45m 6.75% 6.75% % Senior Secured 219 NC-3 Credit Suisse, Deutsche Bank Citigroup, JPMorgan, Telecommunications fund Apax s purchase of Morgan Stanley, UBS Orange Ba3 BB- 2 Orange Switzerland Priced 3/2/212 EUR 225m EUR 225m 8.25% 8.25% % Senior Unsecured 22 NC-4 Credit Suisse, Deutsche Bank Citigroup, JPMorgan, Telecommunications fund Apax s purchase of Morgan Stanley, UBS Orange B3 B- 6 Orange Switzerland Priced 3/2/212 EUR 15m EUR 15m E+5.25% E+5.25% 99 Senior Secured 219 NC-3 Credit Suisse, Deutsche Bank Citigroup, JPMorgan, Telecommunications fund Apax s purchase of Morgan Stanley, UBS Orange Ba3 BB- 2 INEOS Group Limited Priced 3/2/212 USD 1bn % 8.375% % Senior Secured 219 NC-3 JPMorgan INEOS Group Limited Priced 3/2/212 EUR 25m EUR 5m E % E+6% 1 Senior Secured 219 NC-3 Barclays Capital Barclays Capital, BofA Merrill Lynch, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, Lloyds, Morgan Stanley and UBS JP Morgan, BofA Merrill Lynch, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, Lloyds, Morgan Stanley and UBS Chemicals Chemicals refinance debt refinance debt Ba3 B 2 Ba3 B 2 Page 22

23 High Yield Bond Issuance HY 212 ANALYTICS Final Pricing Instrument Rating Issuer Status Date Priced Planned Actual Price Talk Coupon Price YTM Seniority Security Maturity Call Protection Lead Book- Runner Joint Book- Runners Industry Use of proceeds/ Notes Moody's S&P Recovery Rating Orange Switzerland Priced 9/2/212 EUR 18m EUR 18m E+5.25% % Senior Secured 219 NC-1 Credit Suisse, Deutsche Bank Citigroup, JPMorgan, Telecommunications repay its existing term Morgan Stanley, UBS loan B. Ba3 BB- 2 Numericable Priced 9/2/212 EUR 35m EUR 36m 13% % % Senior Secured 219 NC-4 JPMorgan BNP Paribas, Credit Agricole, Goldman Sachs, HSBC Cable Proceeds will repay some of group s Capital Investment Facility and part of the A, B and C loan tranches. B2 B Securitas Direct AB Priced 1/2/212 EUR 5m EUR 5m 1% 8.75% % Senior Secured 218 NC-2 Goldman Sachs, Morgan Stanley BofA Merrill Lynch, HSBC, Nomura, Nordea AB Services Proceeds will refinance debt used to acquire Securitas by Bain Capital and Hellman & Friedman in late June 211. B2 B Securitas Direct AB Priced 1/2/212 EUR 1m EUR 1m E+6.5% E+6.5% 93 Senior Secured 218 NC-2 Goldman Sachs, Morgan Stanley BofA Merrill Lynch, HSBC, Nomura, Nordea AB Services Proceeds will refinance debt used to acquire Securitas by Bain Capital and Hellman & Friedman in late June 211. B2 B Securitas Direct AB Priced 1/2/212 EUR 271.5m EUR 271.5m 12.5% 8.75% % Senior Secured 218 NC-2 Goldman Sachs, Morgan Stanley BofA Merrill Lynch, HSBC, Nomura, Nordea AB Services refinance their Series B loan. Caa1 CCC+ Faurecia SA Priced 14/2/212 EUR 14m EUR 14m 9.375% % Senior Unsecured 216 NC-L Credit Agricole, Natixis BNP Paribas, Societe Generale Automotive reduce outstanding debt under its existing syndicated credit facility. Ba3 Center Parcs (UK) Group Plc Priced 17/2/212 GBP 27m GBP 28m 11.75% % % Senior Secured 218 NC-3 RBS Barclays, HSBC, Lloyds Banking Group Leisure Proceeds will be used for Securitisation BB+ Virgin Media Inc Priced 29/2/212 USD 4m USD 5m 5.25% Senior Unsecured 222 Cable repurchase a portion of its 9.5% senior notes due 216. BB- 5 Stora Enso Oyj Priced 29/2/212 EUR 5m EUR 5m Mid swaps+3% 5.5% % Senior Unsecured 219 Deutsche Bank Citigroup, Goldman Sachs, SEB Paper & Forest Products Issued under its EMTN programme the note will be used to refinance a tender offer for part of its EUR 75m 5.125% 214 bond and for general corporate purposes. Ba2 BB Page 23

24 High Yield Bond Issuance HY 212 ANALYTICS Final Pricing Instrument Rating Issuer Status Date Priced Planned Actual Price Talk Coupon Price YTM Seniority Security Maturity Call Protection Lead Book- Runner Joint Book- Runners Industry Use of proceeds/ Notes Moody's S&P Recovery Rating Viridian Group Limited Priced 1/3/212 USD 25m % % % Senior Secured 217 NC-3 Viridian Group Limited Priced 1/3/212 EUR 313m % % % Senior Secured 217 NC-3 Deutsche Bank, RBS Deutsche Bank, RBS Barclays, Commerzbank, UBS Barclays, Commerzbank, UBS Energy Services Energy Services Issued out of Viridian Group FundCo II Limited proceeds will be used to repay exisiting indebtedness and for general corporate purposes. Issued out of Viridian Group FundCo II Limited proceeds will be used to repay exisiting indebtedness and for general corporate purposes. B2 B2 Afren Plc Priced 1/3/212 USD3-35m USD 3m % 1.25% % Senior Secured 219 NC-4 Global Hunter, Natixis Goldman Sach, BNP Paribas, Deutsche Bank Energy Services repay existing debt and for general corporate purposes. B Gategroup Holding AG Priced 2/3/212 EUR 35m EUR 35m % 6.75% % Senior Unsecured 219 NC-3 Credit Suisse Citigroup, Deutsche Bank, Goldman Sachs Services refinance debt B1 BB 4 Eco-Bat Technologies plc Priced 2/3/212 EUR 3m EUR 3m % 7.75% % Senior Unsecured 217 NC-2 Citigroup, Credit Suisse HeidelbergCement AG Priced 2/3/212 EUR 3m EUR 3m % 4% 1 4% Senior Unsecured 216 NC-L Morgan Stanley Obrascon Huarte Lain SA Priced 15/3/212 EUR 3m EUR 3m % 7.625% % Senior Unsecured 22 NC-4 Credit Suisse Fresenius SE & Co. KGaA Priced 21/3/212 EUR 5m EUR 5m 4.25% 4.25% % Senior Unsecured 219 NC-L Deutsche Bank Fiat S.p.A. Priced 21/3/212 EUR 85m EUR 85m 7% 7% 1 7% Senior Unsecured 217 Barclays, ING Group N.V. BofA Merrill Lynch, Commerzbank, Danske Bank A/S, Deutsche Bank, Nordea AB, Raiffeisen Bank, Skandinaviska Enskilda Banken AB, Standard Chartered BofA Merrill Lynch, Citigroup, Credit Agricole, RBS, Santander, Societe Generale Bayern LB, Commerzbank, LBBW, RBS Banca IMI, Barclays, Commerzbank, Credit Agricole, Goldman Sachs, Natixis, UniCredit Metals & Mining Construction & Homebuilding Construction & Homebuilding Healthcare Automotive Issued out of Eco-Bat Finance plc proceeds will be used to repay revolving facilities and for general corporate purposes. Proceeds will be used for General Corporate purposes The notes will be used to purchase EUR 176.3m worth of its EUR 7m senior notes due 215. The remaining proceeds of around EUR 124m will remain in OHL's cash balance. The German healthcare group will use the proceeds to fund its acquisition of the Damp Group, refinancing of short-term debt, and general corporate purposes. refinance debt B1 B+ 3 Ba1 BB Ba2 BB- Ba1 BB+ Ba3 BB Page 24

25 High Yield Bond Issuance HY 212 ANALYTICS Final Pricing Instrument Rating Issuer Status Date Priced Planned Actual Price Talk Coupon Price YTM Seniority Security Maturity Call Protection Lead Book- Runner Joint Book- Runners Industry Use of proceeds/ Notes Moody's S&P Recovery Rating Rexel SA Priced 21/3/212 USD 3m USD 4m 6.25% 6.125% % Senior Unsecured 219 NC-3.75 BofA Merrill Lynch Barclays Capital, RBS Services Issued out of Lowell Group Financing plc. Proceeds will be used for general corporate purposes Ba2 BB Lowell Group Priced 23/3/212 GBP 2m GBP 2m 1.75% 1.75% % Senior Secured 219 NC-3 JPMorgan Lloyds Banking Group Financial Services refinance debt B1 BB 2 Jaguar Land Rover Priced 23/3/212 GBP 5m GBP 5m % 8.25% % Senior Unsecured 22 NC-4 Credit Suisse Citigroup, JPMorgan, Morgan Stanley, Standard Chartered Automotive Proceeds will be used for general corporate purposes B1 B+ 4 SPIE SA Priced 28/3/212 EUR 375m EUR 375m % 11% 1 11% Senior Unsecured 219 NC-3.5 Morgan Stanley Calyon, Deutsche Bank, BNP Paribas, Natixis Energy Services Issued out of Spie Bondco 3 S.C.A. the notes will be used to refinance existing debt. Caa1 Lawson Software Priced 29/3/212 USD 115m 9.5% 9.375% % Senior Unsecured 219 NC-3 BofA Merrill Lynch Barclays, Credit Suisse, Deutsche Bank, JPMorgan, Kohlberg Kravis Roberts & Co., Morgan Stanley, RBC Technology Proceeds, along with new USD 3.65bn credit facility, will refinance debt in relation to the merger of Lawson and Infor Global Solutions. Caa1 B- 5 Lawson Software Priced 29/3/212 EUR 25m EUR 25m 1% 1% 1 1% Senior Unsecured 219 NC-3 BofA Merrill Lynch Barclays, Credit Suisse, Deutsche Bank, JPMorgan, Kohlberg Kravis Roberts & Co., Morgan Stanley, RBC Technology Proceeds, along with new USD 3.65bn credit facility, will refinance debt in relation to the merger of Lawson and Infor Global Solutions. Caa1 B- 5 Vantage Drilling Company Inc Priced 2/4/212 USD 775m USD 775m 11.5% 11.5% % Senior Secured 215 NC-1 Jefferies, Citigroup, RBC Energy Services Proceeds fund the purchase of the Dragonquest deep sea drillship from Valencia Drilling. B3 B- PSA Peugeot-Citroen SA Priced 3/4/212 EUR 6m 5.625% % Senior Unsecured 217 BBVA, Credit Agricole, Deutsche Bank, HSBC, Natixis Automotive The notes will be used to refinance the group's 213 maturities. Ba1 BB+ Page 25

26 High Yield Bond Issuance HY 212 ANALYTICS Final Pricing Instrument Rating Issuer Status Date Priced Planned Actual Price Talk Coupon Price YTM Seniority Security Maturity Call Protection Lead Book- Runner Joint Book- Runners Industry Use of proceeds/ Notes Moody's S&P Recovery Rating Wind Telecomunicazioni S.p.A. Priced 4/4/212 EUR 2m EUR 2m 7.375% % Senior Secured 218 NC-3 Deutsche Bank EUR 25m of proceeds will repay half of the EUR 5m bridge loan the BNP Paribas, Banca group incurred to purchase spectrum licences Imi, Barclays, Credit Telecommunications Suisse, ING, Societe in 211. The remaining Generale EUR 25m will be used to prepay short-term maturities and fund GCP. Ba3 BB Wind Telecomunicazioni S.p.A. Priced 4/4/212 USD 4m USD 4m 7.25% % Senior Secured 218 NC-3 Deutsche Bank EUR 25m of proceeds will repay half of the EUR 5m bridge loan the BNP Paribas, Banca group incurred to purchase spectrum licences Imi, Barclays, Credit Telecommunications Suisse, ING, Societe in 211. The remaining Generale EUR 25m will be used to prepay short-term maturities and fund GCP. Ba3 BB Inmarsat Plc Priced 5/4/212 USD 2m USD 2m 7.375% 16 Senior Unsecured 217 Telecommunications The company intends to use the net proceeds (after fees and expenses) of USD 28.4m for general corporate purposes. Ba2 Rexel SA Priced 16/4/212 USD 1m USD 1m 6.125% % Senior Unsecured 219 NC-3 Barclays, BofA Merrill Lynch, RBS Services Proceeds will be used for general corporate purposes, including backing potential acquisitions. Ba2 BB Faurecia SA Priced 27/4/212 EUR 25m EUR 25m % 8.75% % Senior Unsecured 219 NC-3 Credit Agricole BNP Paribas, HSBC, Mitsubishi, Natixis Automotive Faurecia will use the net proceeds primarily to reduce its outstanding debt, including the repayment of part of the revolving indebtedness under its corporate EUR 1,15m Senior Credit Facility. B2 INEOS Group Limited Priced 27/4/212 USD 2.2bn USD 775m % 7.5% 1 7.5% Senior Secured 22 NC-3 Barclays, JPMorgan Goldman Sachs, UBS Chemicals Proceeds will be partly used to refinance senior term loans and will be marketed in the US and Europe. B1 B+ Teekay LNG Partners L.P. 1/5/212 NOK 7m NOK 7m Senior Unsecured 217 Transportation Proceeds will be used for general corporate purposes. Page 26

27 High Yield Bond Issuance HY 212 ANALYTICS Final Pricing Instrument Rating Issuer Status Date Priced Planned Actual Price Talk Coupon Price YTM Seniority Security Maturity Call Protection Lead Book- Runner Joint Book- Runners Industry Use of proceeds/ Notes Moody's S&P Recovery Rating Lecta S.A Priced 4/5/212 EUR 245m EUR 2m 9% 8.875% % Senior Secured 219 NC-3 Deutsche Bank Credit Suisse, Morgan Stanley Paper & Forest Products Proceeds will refinance existing indebtedness. B1 Lecta S.A Priced 4/5/212 EUR 345m EUR 39m E % E+5.5% 99 Senior Secured 218 NC-2 Deutsche Bank Credit Suisse, Bank, Morgan Stanley Paper & Forest Products Proceeds will refinance existing indebtedness. B1 Europcar Groupe SA Priced 4/5/212 EUR 335 EUR 324m 12.5% 11.5% % Senior Subordinated 217 NC-L Deutsche Bank Credit Agricole, Goldman Sachs, JPMorgan, RBS, Societe Generale Leisure The notes will partly refinance the group s EUR 425m FRNs due May 213. Caa1 B- 5 Carlson Wagonlit Travel Priced 9/5/212 USD 492 USD 465m 7.625% 6.875% % Senior Secured 219 NC-3 JPMorgan BNP Paribas, Jefferies, Lloyds Banking Group, Morgan Stanley Leisure Net proceeds, along with approximately USD 47m of cash on hand, will be used to repay in full CWT s senior facilities and to redeem its senior floating rate notes due in 215 (not taking into account accrued and unpaid interest). B1 B+ 4 Carlson Wagonlit Travel Priced 9/5/212 EUR 275m EUR 3m 7% 7.5% 1 7.5% Senior Secured 219 NC3 JPMorgan BNP Paribas, Jefferies, Lloyds Banking Group, Morgan Stanley Leisure Net proceeds, along with approximately USD 47m of cash on hand, will be used to repay in full CWT s senior facilities and to redeem its senior floating rate notes due in 215 (not taking into account accrued and unpaid interest). B1 B+ Schmolz + Bickenbach AG Priced 11/5/212 EUR 3m EUR 258m % 9.875% % Senior Secured 219 NC-3 BNP Paribas Commerzbank, Credit Suisse, RBS, UniCredit Metals & Mining refinance debt B1 B+ 3 Swissport International AG Priced 11/5/212 USD 13m USD 13m 7.875% % Senior Secured 218 NC-2 Citigroup Barclays Transportation Proceeds together with cash on hand will be used to fund its acquisition of Flightcare, repay existing third-party debt and fees incurred in connection with the acquisition and offering. B2 B 4 Page 27

28 High Yield Bond Issuance HY 212 ANALYTICS Final Pricing Instrument Rating Issuer Status Date Priced Planned Actual Price Talk Coupon Price YTM Seniority Security Maturity Call Protection Lead Book- Runner Joint Book- Runners Industry Use of proceeds/ Notes Moody's S&P Recovery Rating Cableuropa SAU Priced 3/5/212 USD 3m USD 31m 8.875% % Senior Secured 218 NC-1.5 BofA Merrill Lynch BNP Paribas, JPMorgan, Societe Generale, Credit Agricole, Deutsche Bank Telecommunications The non-fungible B1/B+ rated tap will take out the EUR 225m bridge placed in conjunction with the group s recent EUR 1.4bn refinancing package. B1 B+ Four Seasons Health Care Limited Priced 14/6/212 GBP 35m GBP 35m % 8.75% % Senior Secured 219 NC-3 Goldman Sachs Barclays, Lloyds Bank Healthcare Proceeds back Terra Firma s GBP 825m acquisition of the UK nursing home group B1 B+ 1 Four Seasons Health Care Limited Priced 14/6/212 GBP 175m GBP 175m 12.5% 12.25% % Senior Unsecured 22 NC-4 Goldman Sachs Barclays, Lloyds Bank Healthcare Proceeds back Terra Firma s GBP 825m acquisition of the UK nursing home group Caa1 B- 4 Kabel Deutschland Priced 18/6/212 EUR 3m EUR 4m % 6.5% 1 6.5% Senior Unsecured 217 NC-2 Morgan Stanley Deutsche Bank, Goldman Sachs Cable Proceeds will refinance a portion of the group s EUR 6m unsecured bridge facility at Holdco Deutschland Holding AG B1 B 6 Sappi Priced 21/6/212 USD 3m USD 4m 7.75% 7.75% % Senior Secured 217 NC-L JP Morgan, Citigroup, RBS Credit Agricole Standard Chartered, Unicredit Paper & Forest Products Proceeds will refinance its outstanding 12% US dollar and 11.75% euro notes due 214 Ba2 BB 2 Sappi Priced 21/6/212 USD 3m USD 3m 8.375% 8.375% %5 Senior Secured 219 NC-3 JP Morgan, Citigroup, RBS Credit Agricole Standard Chartered, Unicredit Paper & Forest Products Proceeds will refinance its outstanding 12% US dollar and 11.75% euro notes due 214 Ba2 BB 2 Schaeffler Finance BV Priced 28/6/212 EUR 2m EUR 3m 6.75% % Senior Secured 217 NC-2 Deutsche Bank Barclays, BayernLB, Citigroup Automotive The group plans to use the proceeds to repay part of its outstanding debt under its new senior facilities agreement as well as fees and expenses. B1 B Page 28

29 Debtwire Reports & Contacts Debtwire Analytics Research Europe Cable & Telecoms Sector Report May 212 Europe Leveraged Loan Report FY11 Mar 212 Europe High Yield Report FY11 Feb 212 Europe Gaming Sector Report Jan 212 US HY and Leveraged Loan Report FY11 Jan 212 Europe Paper Manufacturing Sector Report Sep 211 Asia High Yield Issuance Report 2Q11 Jul 211 CEEMEA High Yield Issuance Report 2Q11 Jul 211 Europe High Yield Report HY11 Jul 211 European Directories Sector Report Jul 211 Europe Analyst Team Attila Takacs Head of Research Europe +44 () Charu Singh +44 () Miguel Molina +44 () Nazokat Faizullaeva +44 () Thomas Alline +44 () Rashmi de Costa +44 () Denitsa Stoyanova +44 () Editors Alison Lock Research Editor +44 () Carrie-Anne Holt Managing Editor +44 () Global Analyst Contacts John Brokos Head of Research- Hedge Fund Products Howard Tang Head of Leveraged Finance Research Europe Sales Angus Codd Head of Sales + 44 () [email protected] Victoria Hunter Senior CRM Consultant +44 () [email protected] Page 29

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