Melrose PLC's $1.9 billion follow-on offering lead this week's global equity capital markets activity and brought the volume of European follow-ons to $54.2 billion for year-to-date 2012, a 38% decline from last year at this time. Weekly follow-on issuance from European companies totaled $4.6 billion, the strongest week for activity since January 2012. Goldman Sachs tops the bookrunner rankings for European follow-on this year with 10.5% market share, down from 14.5% during year-to-date 2011. JP Morgan has moved into second place, from fifth, with a 2.4 point market share increase.
Financials, energy & power and materials offerings account for 62% of year-to-date follow-on activity in Europe this year.
M&A Below $5 billion Down 13% from 2011
A trio of deals below $5 billion topped the list of mergers and acquisitions this week, bringing worldwide deal making below $5 billion to $1.0 trillion for year-to-date 2012, a decline of 13% compared to last year at this time. Twenty-eight deals over $5 billion have been announced so far this year, totaling $325.4 billion, a 38% decline by value and a 43% decline by number of deals compared to year-to-date 2011.
Deals below $5 billion in the energy & power, financials, materials and industrials sectors account for nearly 50% of activity this year, while deals below $5 billion in the United States have declined 2% compared to 2011 and targets in the United Kingdom are up 4% compared to last year.
Global High Yield Down 20% from 2011
Global high yield corporate debt totals $191.6 billion for year-to-date 2012, a decline of 20% compared to last year at this time. This week's $3.0 billion offering from CITH Group marks the second time the company has tapped the global high yield market this year, bringing high yield new issuance in the financial sector to $33.7 billion, down 14% compared to year-to-date 2011. Energy & power, financials and materials issuers account for 49% of high yield new issues this year.
JP Morgan holds the top spot for global high yield debt underwriting this year with $20.6 billion from 142 offerings for 10.8% of the market. Bank of America Merrill Lynch follows closely behind with 10.2% share.