PwC’s Deals Practice - Capital Markets Watch

PwC’s Deals Practice - Capital Markets
Watch
Capital Markets activity for the week
Welcome to PwC's Capital Markets Watch weekly for the week ending Thursday, February 11, 2016.
This snapshot of the IPO and the high-yield debt markets in the US includes issuances for the last week
and a look forward. We hope you find the information helpful in staying up to date on new issuance
activity. Please reply to this email if you would like to subscribe others to this weekly email.
For companies considering an IPO or high-yield debt offering, it is useful to understand how quickly
windows of opportunity can open and close, making it important to be well-prepared to enter the market
when that moment arrives. Having solid economics, strong fundamentals, and a well prepared story to
market can provide a great foundation for a successful offering.
Summary:
2 IPOs priced raising $145m
2 high-yield debt issuances for $685m
IPO Market: The IPO market remained subdued this week alongside weakness in equity markets, with
two biotechnology IPOs raising $145 million. However, buy-side push back over valuations lead to five
IPOs being postponed and an additional two IPOs withdrawing this week. There is one IPO on the twoweek forward calendar and filing activity remained slow with four companies filing this week. The broader
US equity markets continued to fall this week, with the Dow posting its lowest close in two years.
High-Yield Debt Market: The high-yield debt market slowed this week with only two issuances raising
$685 million to back the spin-offs of Manitowoc's foodservice equipment and crane businesses. An
additional two deals planned for this week did not issue and no new issuances were added to the calendar,
which stands at 12 companies expected to raise approximately $26 billion. With only 16 issuances so far in
2016, this has been the slowest start to the year since 2008.
Consumer sector: No IPOs priced, No high-yield debt issuances
IPO filings
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US Foods (food distributor) filed publicly for $100m on the NYSE
High-yield debt offerings upcoming
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Nexstar Broadcasting/Media General (broadcasting) is expected to issue $1,180m in senior notes
Pinnacle Entertainment (casinos & gaming) is expected to issue $300m in secured bridge notes
Energy sector: No IPOs priced, No high-yield debt issuances
High-yield debt offerings upcoming
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Energy Transfer Equity (oil & gas) is expected to issue $2,000m in notes
Financial sector: No IPOs priced, No high-yield debt issuances
IPO filings

Colony Global (SPAC) filed confidentially as an EGC in Dec 2015, filed publicly for $300m on the
NASDAQ
High-yield debt offerings upcoming
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Gaming and Leisure Properties (REIT) is expected to issue $2,700m in unsecured bridge notes
Healthcare sector: 2 IPOs priced raising $145m, No high-yield debt issuances
IPO pricings
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AveXis (biotechnology) filed confidentially as an EGC in Oct 2015, filed publicly in Jan 2016,
raised $95m - priced within the range - traded on the NASDAQ on Feb 11 and finished the day
down 10%
Proteostasis Therapeutics (biopharmaceuticals) filed confidentially as an EGC in May 2015, filed
publicly in Dec 2015, raised $50m - priced below the range - traded on the NASDAQ on Feb 11
and finished the day down 17%
IPO filings
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BioLight Israeli Sciences Investments (ophthalmic pharmaceuticals) currently trading on the Tel
Aviv Stock Exchange, filed confidentially as an EGC in Dec 2015, filed publicly for $12m on the
NASDAQ
Sensus Healthcare (medical devices) filed confidentially as an EGC in Dec 2015, filed publicly for
$24m on the NYSE MKT
IPOs upcoming

Cancer Prevention Pharmaceuticals (biopharmaceuticals) filed confidentially in Sep 2015, filed
publicly in Dec 2015, most recently filed to raise $25m on the NYSE MKT - expected to price the
week of Feb 22
IPO withdrawals

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Apellis (pharmaceuticals)
Ellipse Technologies (medical technology)
High-yield debt offerings upcoming

Lannett (pharmaceuticals) is expected to issue $250m in senior notes
Industrial sector: No IPOs priced, 2 high-yield debt issuances for $685m
High-yield debt issuances

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Manitowoc Foodservice (food & beverage equipment) issued $425m 144A 9.5% (B) 8-year
unsecured senior notes to back the spin-off of the company from The Manitowoc Company
Manitowoc Cranes (construction machinery) issued $260m 144A for life 14.0% (B+) 5-year
secured 2nd lien notes to back the spin-off of the company from The Manitowoc Company
Technology sector: No IPOs priced, No high-yield debt issuances
High-yield debt offerings upcoming
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Solera (application software) is expected to issue $2,030m in senior notes
Computer Sciences (information technology) is expected to issue $2,000m in notes
Dell (technology hardware & peripherals) is expected to issue $9,000m in notes
Diebold (security services & software) is expected to issue $500m in unsecured bridge notes
Lightower (fiber networking) is expected to issue $460m in unsecured bridge notes
RealD (3D technology) is expected to issue $300m in secured bridge notes
Western Digital (data storage solutions) is expected to issue $5,100m in secured and unsecured
notes
Stories of the week:
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US oil prices reached their lowest levels since May 2003, before rebounding due to speculation on
a possible OPEC production cut
Fed Chairwoman Janet Yellen signaled a possible delay in further interest raises amid global
market turbulence
On Thursday, the 10-year treasury yield fell to January 2015 levels and gold hit a 12-month high,
as investors rushed to safe-haven assets due to heightened risk in global markets
Market volatility as measured by the VIX closed at a six-month high
The Stoxx 600 decreased by nearly 8% due to concerns over the European banking industry
Our insights:
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Click here to download PwC's Deals Practice 2015 US Capital Markets Watch. Our publication
identifies and assesses activity and trends in both the US equity and debt capital markets in 2015
2015 SEC comment letter trends - Our 2015 SEC comment letter trends publications provide a
comprehensive analysis of recent SEC staff comments to assist you in understanding some of the
key trends that are relevant to companies in your sector. Click here to read more
Click here to read our latest issue of In the loop, "Spin-off transactions - Governance
considerations," which discusses how spin-offs have seen a resurgence in recent years
To view previous Capital Markets Watch weekly snapshots, please click here
For more insights and publications on successfully executing an IPO, visit our website, contact me or a
PwC partner in your region.
Regards,
Author:
Derek Thomson
Director, Capital Markets Research Leader
PwC's Deals Practice
[email protected]
Henri Leveque
Partner, Capital Markets & Accounting Advisory Services Leader
PwC's Deals Practice
[email protected]
Neil Dhar
Partner, Capital Markets Leader
PwC's Deals Practice
[email protected]
Mike Gould
Partner, Public Offerings Leader
PwC's Deals Practice
[email protected]
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