In April Goldman Sachs successfully priced a e1.2bn (equivalent) two-tranche offering from Vivendi Universal. The offering was the first significant ‘fallen angel’ to finance in the European high-yield market and came at a time of intense geo-political uncertainty – only five days after the start of the Iraq war.
Against the backdrop of a deteriorating mood between the US and France, the US order book of more than 180 investors committing $4bn was impressive. In all, the offering was five to six times over-subscribed, enabling the transaction to be upsized by e200m with both euro and dollar tranches pricing at the tight end of talk. Subsequent light trading volumes demonstrated the quality of the investor base.
The execution was highly accelerated, with only a five-week period between the kick-off meeting and pricing, and a seven-day, two-team road show.
“The timing of the deal in April took a certain degree of courage.We knew that the quality of the credit story and the strength of the management team would appeal to investors. But at the same time, war in Iraq had just broken out and French wine was being poured down American drains,” said Tim Flynn, managing director and head,
