Bank Meeting vs Roadshow
My textbook defines the bank meeting as a presentation held by the target management and lead arranger to those potential investors that are interested in investing in bank debt. The road show, on the other hand, is described as one-on-one presentations for potential bond investors.
Is this distintion actually accurate? I wonder because bond investors are typically institutional investors, i.e. the same target audience that also invests in TLBs and 2nd Lien Term Loans, and therefore would take part in two distinct presentations?
Bank meeting is for loans, roadshow is for bonds. Both have one or several group presentations with Management / the Sponsor and 1-on-1 meetings.
In the US, a bond roadshow is essentially you being in a car with management and going to investor offices for one-on-one meetings. There is still one or several group presentations.
Key difference is usually timing, bond syndication timing is more condensed (can be 2-3 days) hence it is packed with one-on-one meetings whilst loan syndication is typically 1.5-2 weeks hence it is more Q&A over the phone / etc; less physical travelling.
Target audience has overlaps but can be different - for high yield you will see hedge funds also, whilst for loans you will see CLOs. Some credit investors invest in both of course.
Couldn't be more spot on with your description here, @lbomaster.
Thanks a lot!
It is further mentioned that the CIM distributed in the course of the bank meeting (bank book) may come in two versions in case bonds are part of the financing structure. One which contains businesses-/sector description, financial information, financial projections etc aiming at those investors who are interested in investing in bank debt. And a second one without the projections for prospective bond investors.
That doesn’t really make sense, does it? First because bonds aren’t really a topic that is covered during the bank meeting. And secondly because bond investors will receive the offering memorandum anyway which is basically a more comprehensive CIM.
Dolor perferendis totam qui eos. Eveniet incidunt modi iusto adipisci molestias. Sunt aut illo expedita. Et neque aut qui sapiente quisquam voluptatem minus odio.
Omnis quo maiores ullam iure cupiditate nulla exercitationem. Corrupti sed ex quia quidem laudantium explicabo. Ut quisquam quia nisi ut repellat voluptas deserunt impedit. Dolores esse expedita quia eligendi et natus adipisci.
Facere unde non sit sed fuga delectus. Harum eveniet non qui earum deserunt. Nostrum ea voluptatum sunt facilis illum qui.
Autem laboriosam eveniet omnis sapiente enim odio quaerat. Ducimus provident culpa voluptas ullam ea sapiente alias architecto. Nobis veritatis sunt voluptatem. Minima odit fuga harum repellendus aliquid enim.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...