FINANCIAL SPONSORS INSIGHT Financial Sponsors Insight Consumer & Retail // Convenience Store & Fuel Products Distribution Diversified Industrials // Energy // Financial Services // Health Care // Real Estate Technology & Services APRIL 2020 IN THIS ISSUE Raymond James Overview...................... Economic Outlook.................................... Private Capital Solutions Group…………. Representative Transactions…………..... Sector Contacts..…………….………...…. 2 3 4 7 8 David Clark Managing Director Head of Financial Sponsors Group +1.617.624.7006 [email protected]Ben Rodman Managing Director +1.312.655.2633 [email protected]Christian Bullitt Managing Director +1.212.856.5414 [email protected]Edward Lee Managing Director +1.212.883.6586 [email protected]Dennis Zhang Managing Director & Head of Asia Coverage +1.415.616.8917 [email protected]Allan Bertie Managing Director Co-Head of European Investment Banking +44.754.235.2223 [email protected]Philip Stein Managing Director +49.89.23.23.77.50 [email protected]Stuart Sparkes Managing Director +44.203.798.5703 [email protected]EU BASED COVERAGE US BASED COVERAGE
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Financial Sponsors Insight3.0 million accounts • Global institutional sales force with . 90+ professionals, servicing more than . 3,000 institutional accounts EQUITY RESEARCH •
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FINANCIAL SPONSORS INSIGHT
Financial Sponsors InsightConsumer & Retail // Convenience Store & Fuel Products DistributionDiversified Industrials // Energy // Financial Services // Health Care // Real Estate Technology & Services
APRIL 2020
IN THIS ISSUE
Raymond James Overview......................Economic Outlook....................................Private Capital Solutions Group………….Representative Transactions………….....Sector Contacts..…………….………...….
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David ClarkManaging DirectorHead of Financial Sponsors Group [email protected]
• Recognized with three M&A Deal of the Year awards in 2019 by The M&A Advisor• Recognized with one Best PE Growth Capital Deal award in 2019 by M&A Awards• Recognized with two Deal of the Year awards in 2019 at The M&A Advisor Turnaround Awards• Recognized with three International M&A Deal of the Year awards in 2019 by The M&A Advisor• Recognized with three M&A Deal of the Year awards in 2018 by The M&A Advisor• Recognized with five International M&A Deal of the Year awards in 2018 by The M&A Advisor• Honored with two Deal of the Year awards in 2018 at The M&A Advisor Turnaround Awards• Recognized with three M&A Deal of the Year awards in 2016 and 2017 by The M&A Advisor • Recognized with two International M&A Deal of the Year awards in 2017 by The M&A Advisor
RAYMOND JAMES
• Full-service financial services firm • Founded in 1962; public since 1983 (NYSE: RJF) • Fiscal 2019 net revenue over $7.6 billion; net income
over $1.03 billion • International operations in Brussels, Calgary,
Düsseldorf, Frankfurt, Geneva, London, Munich, Paris, Toronto, and Vancouver
INVESTMENT BANKING
• Over 375 investment banking professionals organized by industry and transaction groups
• Raised nearly $220 billion in capital for our corporate clients since 2015
• Completed over 720 middle-market M&Atransactions since 2015
EQUITY CAPITAL MARKETS
• Powerful institutional and retail distribution capabilities • More than 8,000 financial advisors serving nearly 3.0
million accounts• Global institutional sales force with 90+ professionals,
servicing more than 3,000 institutional accounts
EQUITY RESEARCH
• Over 60 fundamental equity analysts covering nearly 1,200 companies in nine highly focused industries
• Ranked in the top 10 among all brokers in the U.S. in StarMine Analyst Awards from Refinitiv over the past five-year period for total awards won (2019)
RAYMOND JAMES OVERVIEW*
AWARDS AND RECOGNITION**
RECENT PRESS RELEASES
4/09/20 – Raymond James European Investment Banking appoints Alastair Rogers as managing director of Diversified Industrials
3/31/20 – Raymond James appoints Allan Bertie as co-head of European Investment Banking
3/31/20 – Raymond James announces closing of offering of $500 million senior notes
3/27/20 – Raymond James to donate $1.5 million to aid those impacted by COVID-19
RAYMOND JAMES IN THE NEWS
Ed Mills on BloombergEd Mills, Washington Policy Analyst for equity research at Raymond James, discusses the impact of the coronavirus on the markets. He speaks to Bloomberg's Scarlet Fu and Romaine Bostick on “What’d You Miss?.” Watch here.
2*As of 2019 fiscal year-end**Criteria for the awards can be found at https://www.raymondjames.com/corporations-and-institutions/accolades
*This information comes from a weekly COVID-19 webinar that Raymond James hosts on Sunday nights, featuring our Healthcare Policy analyst, Chris Meekins.Source: Raymond James Research
Weekly Economic Monitor – Unprecedented
Chief Economist Scott Brown discusses current economic conditions.
The broad range of economic data signal that a recession began in March. Real Gross Domestic Product (GDP, the total of final goods and services produced in our economy) is expected to have fallen in the advance estimate for 1Q20. The 2Q20 figures will show an unprecedented decline in activity. Weekly claims for unemployment benefits suggest that the pace of job losses has slowed in the last few weeks, but the pace has remained exceptionally high. One in seven U.S. workers has filed a claim in the last five weeks. Meanwhile, lawmakers in Washington approved another $484 billion in fiscal aid, bringing the total so far to about $3 trillion.
Some 26.5 million workers filed a claim for unemployment benefits in the last five weeks. That figure is inflated a bit by the seasonal adjustment (unadjusted claims normally trend low in the spring). However, we know that not every laid-off worker can file a claim. Still, the magnitude here is gut wrenching. Prior to seasonal adjustment, 24.4 million people filed in the last 12 weeks. That’s nearly 15% of the labor force or one in every seven workers. The government will provide extended unemployment benefits and expand eligibility, but the loss of income will, in turn, reduce spending – and that spending is someone else’s income. Second- and third-round effects will add to economic weakness in the near term and hinder the recovery process. However, fiscal stimulus will help to counter those effects.
Weakness in retail sales and industrial production in March was severe enough to generate declines in quarterly figures. The Chicago Fed’s National Activity Index, a composite of 85 economic indicators fell sharply, and the three-month average, at -1.47, was well below -0.70, the level associated with an increased chance that a recession has begun. The National Bureau of Economic Research’s Business Cycle Dating Committee (BCDC) defines a recession as “a significant decline in economic activity spreads across the economy, lasting from a few months to more than a year.” There is no set definition of “economic activity,” but the BCDC takes that to mean various measures of broad activity, such as GDP, nonfarm payrolls, and inflation-adjusted personal income.
– Raymond James Weekly Economic Monitor – April 24th, 2020 Read here
Raymond James Healthcare Policy Analyst Chris Meekins discusses COVID-19
Cases. The U.S. has surpassed 50,000 identified deaths and will surpass 1,000,000 identified cases in the next 24 hours. The good news is that the rate of increase in identified cases of the virus is dropping. We continue to believe the number of infections and deaths are notably higher than official counts. We believe the number of infections in the U.S. based on some recent studies could be above 20,000,000.
Testing. U.S. COVID-19 testing execution ramped up this week, averaging almost 212,000 tests per day. Recent FDA approval of spun swabs using saline solution and more complete utilization of existing labs have both contributed to improved statistics. Antibody tests are slowly but surely becoming more available though questions remain about their accuracy.
Reopenings. States like Georgia, South Carolina, and Oklahoma are gradually reopening the doors of nonessential businesses. We do not believe any are ready to open on a wide scale. As leaders weigh the costs and benefits of protecting public health vs. reviving economies, they should remember that a premature opening and possible resurgence could hurt both parties.
Testing Changes. Recent FDA approval of spun swabs using saline solution and more complete utilization of existing labs have increased the number of tests. Over the weekend, Dr. Fauci stated that the amount of testing needs to dramatically increase before reopenings should occur.
– Raymond James COVID-19 Update – April 26th, 2020 Read here
Raymond James’s Private Capital Solutions team has a proven track record of providing independent advice and implementing the optimal transaction enabling clients to efficiently
achieve their objective.
20+Dedicated bankers
Advised on over $10 billion of debt and equity
financing commitments
Proprietary network of over 1,000
capital sources
Transactions consummated involving over $100 billionof obligations
Dedicated Team with Extensive Transaction ExperienceDeep Analysis and Understanding of Every Situation
Comprehensively assess company performance and capital structure, industry landscape, market dynamics
Accurately present the relative advantages / disadvantages of viable alternatives, process timelines and impacts on constituents
Evaluate, strongly recommend and implement the strategy (or strategies) that will provide maximum value based on client goals and objectives
Immediately commence work in the most efficient manner, utilizing senior banker resources across industry and product expertise
Company Performance
Capital Structure
Industry Landscape
Market Dynamics
Legal System and
Strategy
Key Group Stats Awards
SPOTLIGHT – PRIVATE CAPITAL SOLUTIONS GROUP
*Includes deal awards presented by M&A Advisor Turnaround awards in 2018 and 2019.Criteria for the awards can be found at https://www.raymondjames.com/corporations-and-institutions/accolades
INVESTMENT BANKINGJim Bunn | Senior Managing DirectorPresident of Global Equities & Investment BankingSteve Hufford | Managing DirectorChief Operating Officer, Co-Head of European Advisory
INDUSTRY CONTACTSConsumer & RetailMark Goodman | Managing DirectorHead of Consumer & Retail Group
Convenience Store & Fuel Products DistributionScott Garfinkel | Managing DirectorHead of Convenience Store & Fuel Products Distribution Group
Diversified IndustrialsAlper Cetingok | Managing DirectorHead of Diversified Industrials Group
EnergyMarshall Adkins | Managing DirectorHead of Energy Group
European AdvisorySteve Hufford | Managing DirectorChief Operating Officer, Co-Head of European AdvisoryAllan Bertie | Co-Head of European Advisory
Financial ServicesJohn Roddy | Managing DirectorHead of Financial Services Group
Health CareRiley Sweat | Managing Director Co-Head of Health Care GroupAndrew Gitkin | Managing Director Co-Head of Health Care Group
Real EstateBrad Butcher | Managing DirectorCo-Head of Real Estate GroupJamie Graff | Managing DirectorCo-Head of Real Estate Group
Technology & ServicesBrendan Ryan | Managing DirectorCo-Head of Technology & Services GroupJon Steele | Managing DirectorCo-Head of Technology & Services Group
SPECIALTY TRANSACTION GROUP CONTACTSPrivate Capital Solutions and Recapitalization & RestructuringGeoff Richards | Managing DirectorHead of Private Capital Solutions Group
Mergers & AcquisitionsJeff Maxwell | Managing DirectorHead of Mergers & Acquisitions Group
Credit FinanceRaj Singh | Vice Chairman of Investment BankingHead of Credit Finance Group
UPCOMING CONFERENCESEvents have been canceled or postponed due to COVID-19
RECENT CONFERENCESDecember 9th – 11th
RJ Technology Investors Conference
January 13th – 15th
ICR Conference
January 21st
ACG Boston BIG Deal Event
January 27th – 28th
ACG Northeast Dealmaking Conference
February 18th – 20th
WWETT Show 2020
March 1st – 4th
RJ Institutional Investors Conference
RAYMOND JAMES FEATURED NEWSLETTERS Defense & Government Services Market Intel Report
Education Technology Insight
Executive Freight Trends Digest
FinTech Monthly
Food & Beverage Insight
Human Capital Monthly
M&A Insight
Software Insight
Water Quarterly Newsletter
RAYMOND JAMES EQUITY RESEARCHApril 2020 Research Register
Raymond James Top Stock Picks 2020
The information contained within this material has been obtained from sources considered reliable, but we do not guarantee the foregoing material is accurate or complete. This report was prepared within Raymond James & Associates’ Investment Banking Department and is information purposes only. This report is not a product of Raymond James & Associates’ Research Department; recipients of this report should not interpret the information herein as sufficient grounds for an investment decision or any other decision. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned herein; past performance does not guarantee future results. Any performance mentioned does not include transaction fees and costs which would reduce an investor’s return. An investment cannot be made directly in a market index.