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In troubled times corporates often turn to the banks with the biggest balance sheets for their financing. For those investment banks without a massive lending capacity these are times when they must be innovative and lead with advice and execution. That is the case for Goldman Sachs the winner of this year’s award for North America’s best bank for financing.
For US corporates seeking to raise capital in the equity markets, the bank has long enjoyed a leadership position. Goldman Sachs heads the league tables in both IPOs and follow-ons for the period end of Q2 2015 to end of Q1 2016. When markets were stressed in December, Goldman, as left lead bookrunner and stabilization agent, successfully brought Atlassian’s $531 million IPO to market. The deal was increased by 10% and traded up 32% on the first day of trading despite the challenging environment. In the energy sector, which was all but closed, Goldman was sole active bookrunner on Hess’s $1.7 billion dual-tranche offering in February this year. It was the first-ever mandatory convertible to be structured with a call spread overlay.
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Marc Nachmann, |
Marc Nachmann, global head of the financing group for Goldman Sachs, says the volatile markets have allowed his firm to show the strength of its financing capabilities in debt capital markets too. In the first quarter of this year the gap in debt underwriting between Goldman Sachs and the big balance-sheet banks had narrowed sharply. “When it comes to financing, we’re showing that clients want more than just balance sheet,” says Nachmann. Goldman has been in every possible corner of financing. It has led the majority of the energy sector’s recapitalizations. The firm was also the sole lead arranger on Mylan’s bridge loan for its hostile takeover of Perrigo and for Newell Rubbermaid’s acquisition for Jarden. Indeed, in 2015 Goldman Sachs committed $42 billion in bridge financing in the US. In commercial mortgage-backed securities, its market share has also increased from 3% to 12.3% since the crisis. In leveraged finance and non-domestic currency raising, Goldman has also been a key player.
