Goldman, UBS, Barrenjoey mandated for V irgin’s $3b-plus float | Centuria Industria l in $300m convertible bond | Intellihub line s up lenders for $500m injection

Good evening,

Investment banks’ ECM teams were buzzing with activity on Thursday.

Of course, it would have been fist pumps and high-fives all around at Barrenjoey, Goldman Sachs and UBS. Bain Capital’s head office blessed the trio’s JLM roles on Virgin Australia’s $3 billion odd float on Thursday, in what could shape out to be 2023’s biggest ECM deal (and much-needed padding to local IB fees).

But other banks had plenty happening to console themselves.

Morgan Stanley and BofA were zipping up a $300 million convertible bond sale (and associated delta placement) for Centuria Industrial REIT. It was framed as an antidote to the poison pill of higher interest rates for the REIT, and a chance to get units at a discount to the NTA for the investors. It would be interesting to see how the deal goes – and if it draws out more REITs or property managers to the raising circuit.

Speaking of property and its capital needs, UBS and Macquarie were mopping up Kiwi retirement village owner Ryman Healthcare’s $NZ902 million ($820 million) recap, calling bids into a shortfall placement in the afternoon.

Over in M&A, it was a day of disappointments with talks continuing at Origin Energy (as expected) but getting knocked down at Newcrest (in a surprise).

That’s 2022 and 2023’s two biggest deals not making as much noise as investors would like, but arb funds reckoned there was a good chance Newmont would come back for another go.

Lastly, in DCM, Street Talk spotted Citi disbanding its credit trading desk amid IB’s penny-pinching. And last year’s core-plus infrastructure hottie, Intellihub, was rattling the tin for another $500 million to roll out its smart meters faster in New Zealand.

Happy reading,

Anthony Macdonald, Sarah Thompson and Kanika Sood

Street Talk Editors