High Grade & High Yield Debt

Unlock value

The KeyBanc Capital Markets® high grade and high yield capital markets team leverages broad industry and market expertise to deliver superior execution and exceptional service to our clients. Our experts work in close coordination with our Syndicated Finance, Leveraged Finance and Fixed Income professionals to provide integrated financial solutions made possible by our deep institutional partner relationships.

Since 2011, we have helped our clients raise over $300 billion of capital to replace existing debt, fund M&A, return capital to shareholders, and support other strategic business objectives.

Our focus on middle-market companies makes our relationships and experience particularly relevant, and supports our commitment to rapid decision-making. Together with our industry specialists, our high grade and high yield capital markets team delivers innovative deal structuring and reliable results.

Some recent high grade and high yield deal examples include:

  • KeyBanc Capital Markets acted as Joint Bookrunner on both a committed Bridge Facility and $450 million Senior Notes offering for Patheon Inc. (JLL/Delta Dutch Newco). Together with the term loan financing (on which we also acted as Bookrunner), the proceeds from the Senior Notes (Caa2 / CCC+) were used to fund the acquisition of drug-development-contractor Patheon and DSM Pharmaceutical Products (DPP) by JLL Partners and Royal DSM. The eight-year transaction priced at the low end of price talk to yield 7.50%.
  • KeyBanc Capital Markets acted as Joint Lead Placement Agent for DTE Electric, a subsidiary of DTE Energy Company. DTE Electric generates electric energy from fossil plants, a hydroelectric plant and a nuclear plant as well as purchases and sells the energy. The company issued $100 million of 3.770% First Mortgage Bonds due 2026 and $150 million of 4.600% First Mortgage Bonds due 2044 with spreads of T+100 bps and T+90 bps respectively. This represents the second transaction in the last 9 months on which KBCM acted as Lead Placement Agent for a DTE Energy subsidiary.
  • Kodiak Oil & Gas Corp. , an independent energy company, issued $400 million of 5.500% Senior Notes due in 2022. The offering was upsized by $100 million after receiving nearly $2 billion in orders. The company used the funds raised to repay credit facility indebtedness incurred for an acquisition in July 2013. KeyBanc Capital Markets acted as joint book-running manager on the high yield offering.
  • Our specialized team understands the unique needs of companies that have ratings of Baa3 (Moody's) or BBB- (Standard & Poor's) or higher, with a goal to raise capital in the debt markets. We have the experience and expertise to provide advisory and execution services in the high grade capital markets.
  • We have the resources to help your company create optimal structures and terms for a bond offering. Our syndicate desk provides keen insight to the markets and maintains relationships with both investors and issuers, while our sales and trading teams complete the process and provide input throughout the lifecycle of the offering. Our team of 50 sales professionals maintains relationships with over 2,200 institutional accounts with coverage of Tier I, Tier II and Tier III accounts.
  • Many companies with ratings of Ba1 (Moody's) or BB+ (Standard & Poor's) or lower raise capital in the high yield bond market. Our teams are experienced in the nuances of the high yield market and sharply focused on the structuring and execution of high yield solutions that meet the needs of our clients.
  • KeyBanc Capital Markets has rapidly grown its high yield new issue practice, evidenced by our recent roles as bookrunner on a number of transactions. We have hired four additional sales and trading professionals during 2013 to further augment our platform and to ensure optimal execution for our clients.
  • Our sales and trading teams maintain investor relationships and provide market insight and secondary trading support throughout the lifecycle of the offering. The 13 senior professionals in our high yield sales group average over 20 years of experience in the industry