Debt and mezzanine league tables for 2000

Note: Thomson Financial Securities Data requires that to qualify for inclusion in its league tables a firm leads on a minimum of two deals

Lead mezzanine arrangers on UK buyouts

The Royal Bank of Scotland shunted up from third place in 1999 to first in 2000. Aside from The Royal Bank of Scotland the only others to make the table both in 2000 and 1999 are Bank of Scotland, which in 1999 took first place, and Intermediate Capital Group which in 1999 came second. Slipping out of the picture in 2000 were ABN (fourth in 1999), Barclays (fifth in 1999), Societe Generale (sixth in 1999) and Credit Agricole Indosuez (seventh in 1999).

Lead debt arranges on UK buyouts

The Royal Bank of Scotland tops the league table for lead debt arrangers on UK deals in 2000 as well as taking first position in the mezzanine table. Undoubtedly taking first place – The Royal Bank of Scotland only came in eleventh position in 1999 – was boosted by its acquisition of NatWest. In 1999 NatWest Acquisition Finance came seventh in the league table of lead debt arrangers on UK deals.

Its rival Bank of Scotland, however, appears undaunted coming in second place, a climb from its third place position in 1999 when it recorded 63 deals worth GBP1.2 billion. Interestingly in 2000 Bank of Scotland did just

one deal more than in 1999 but managed to rack up a total deal value nearly three times higher than 1999 at GBP3.5 billion.

JP Morgan Chase came in third place in 2000 having ranked fourth and first, respectively, in 1999.

The 2000 league table quite clearly demonstrates those banks – namely the investment banks – doing ad hoc senior debt for deals on which they either have another interest and/or the deal size demands the syndication capacity of an investment bank. Those scoring a lot of deals are operating in the mid market and have traditionally been the like of the two Scottish banks, NatWest Acquisition Finance, which is now part of The Royal Bank of Scotland, Barclays (fifth in 1999), and HSBC (thirteenth in 1999).

Lead mezzanine arrangers on European buyouts (including Europe)

In 2000 The Royal Bank of Scotland knocks Bank of Scotland off its 1999 top spot when Bank of Scotland counted a total of 16 deals worth GBP79 million. This change sees The Royal Bank of Scotland move from third place in 1999 to first in 2000. In 1999 it registered just two deals worth GBP21 million but in 2000 this has jumped both in deal numbers and deal size. Indigo Capital is unable to disclose deal values and hence there is no amount listed against the value of the two deals done in the UK during 2000. Those that dropped out of the table in 2000 include ABN (two deals worth GBP13 million), Barclays (two deals worth GBP43 million), Credit Agricole Indosuez (two deals worth GBP9 million) and Societe Generale (two deals worth GBP10 million).

The Royal Bank of Scotland

The Royal Bank of Scotland seems worthy of particular note since it has made it to the top of three of these league tables and made an admirable showing in sixth place with 55 deals worth GBP3.8 billion in the table representing lead debt arrangers in Europe last year. Undoubtedly the purchase of NatWest, which long had a serious player in its acquisition finance team, has made a big contribution to The Royal Bank of Scotland’s standing

in the financing of private equity-backed companies in the European debt market.

Deals in which The Royal Bank of Scotland featured in 2000 include the MBO of UK-based Betts Group in May. This deal, worth a total of GBP97 million, involved the bank in two term loans, a revolving credit facility and a mezzanine portion. The MBO of UK-based Darkoum in January, worth GBP103 million, and involved both a term loan and revolving credit facility. The

GBP326 million LBO of Hogg Robinson, which involved both debt and mezzanine (and was joint-led with Societe Generale.) The MBO of Motherwell Information Systems, worth GBP44 million, involved both debt and mezzanine financing. The GBP47 million MBO of Pinewood Studios, which required both a revolving credit

facility and a term loan. The LBO of France-based Pollyconcept, worth GBP153 million, required both debt and mezzanine. Again debt and mezzanine finance was provided in support of UK-based Smartseam’s MBO worth

GBP45 million, and for Ward Holdings

GBP66 million LBO. Senior debt and a revolving credit facility was provided in support of UK-based Wolseley’s GBP197 million LBO in April last year.

Lead senior debt arrangers on European buyouts (including Europe)

JP Morgan Chase takes first place a considerable improvement on 1999 when Chase came tenth with just two deals worth GBP172 million. JP Morgan didn’t feature in the 1999 league table. Merrill Lynch also made a strong climb from ninth place in 1999 to second in 2000. Salomon Smith Barney had taken second place in 1999.

BNP Paribas shows the largest change. It managed to take first place in 1999s league table on the strength of 18 deals worth GBP1.3 billion but in 2000 it financed just 11 deals worth GBP2.1 billion. This increase in average deal size during 2000 reflects the market has a whole. Deutsche Bank, for example, has suffered from this. In 1999 it came in sixth position with 5 deals worth GBP502 million. It did just three more deals in 2000 but increase its total deal value to GBP3.4 billion but slipped to ninth place. UBS is similar having done three deals worth GBP513 million in 1999, which gained it fifth place in the 1999 league table, and in 2000 done five deals worth GBP3.7 billion probably expected to achieve a higher ranking than eighth.