Energy & Power M&A Falls to 4-Year Low
MidAmerican Energy Holding's $10.4 billion (including net debt) bid for Nevada-based NV Energy Inc pushed the volume of worldwide merger activity in the energy & power sector to $123.9 billion for year-to-date 2013, a 31% decline compared to last year at this time and the slowest year-to-date period for deal making in the sector since 2009. Energy M&A in the United States accounts for 50% of worldwide activity so far this year, registering a decline of 13% over last year at this time. Targets in the Oil & Gas and Power sectors account for 86% of this year's energy & power activity.
Citi leads the financial advisor rankings for worldwide M&A in the energy & power sector with $25.9 billion from 24 deals. Morgan Stanley follows in second place with $20.3 billion from 24 deals.
Convertible Offerings Rise 78% Over 2012
The pace of global convertible debt offerings is off to the strongest annual start since 2008, with $41.2 billion in new offerings so far this year, an increase of 78% compared to last year at this time. Issuers in the United States account for 35% of overall issuance this year with Asia Pacific issuers representing 29% of this year's tally and Europe representing 27%. Six sectors have seen triple-digit gains over 2012, led by media & entertainment, materials and consumer staples. Only convertible offerings in the technology and consumer products sectors have registered year-over-year declines.
Goldman Sachs, the sole-bookrunner for this week's $980.0 million offering from priceline.com, leads the year-to-date global convertible debt league tables with 10.7% market share.
Industrial Corporate Debt Up 6%
This week's $2.8 billion bond offering from Northrop Grumman brings the volume of investment grade corporate debt in the industrial sector to $77.5 billion for year-to-date 2013, a 6% increase compared to last year at this time and strongest start for the sector since year-to-date 2009. European issuers account for two-thirds of corporate debt issuance in the sector this year, while Asia represents 30% and the Americas accounts for 21%. Transportation & infrastructure and auto issuers account for 65% of this year's industrial offerings.
Morgan Stanley remains atop the list of industrial investment grade corporate debt underwriters with 8.6% market share, up from 5.7% last year at this time when the firm also ranked first.