A Pragmatist’s Guide to Leveraged Finance: Credit Analysis for Bonds and Bank Debt

22. New Issuance

What’s in this chapter:

• What documents are typically available in the new-issue process

• Why companies come to market with new issues

• How to examine pro forma adjustments in new-issue documents

Depending on the market cycle and your job, a large part of a high-yield credit analyst’s job can be spent on new issuance. Typically when a new issue for a bond or loan is coming to market, the analyst can get more detailed information about the industry and the company, as well as more access to management.

Along with company management, the sell-side investment bankers, lawyers, accountants, capital markets team, and analysts may spend several weeks or even months working with the company and doing due diligence to assess the validity ...