The pace of U.S. public M&A activity retracted slightly in July from $143.4 billion in June to a solid $124 billion, according to research by DealPointData. The price for control increased in July. The average 90 day control premium increased to 33.3% from 31.14% and marked the fourth consecutive month above 30 per cent. For the month of July, Morgan Stanley was at the top of the U.S. public financial adviser's league table, with $53.5 billion in deals. Among legal advisers, Davis Polk was the market leader with $39.8 billion in deals announced in July.
|July 2015||Last 12 Months|
|Avg. 1 Day Premium %||32.0%||28.5%|
|% of Mergers that are Accretive||31.3%||40.2%|
|Avg. Target Break Fee as % of Equity Value||3.5%||3.6%|
|Avg. Reverse Break Fee as % of Equity Value||6.3%||5.8%|
|% of Mergers that were hostile/unsolicited||6.3%||13.7%|
Morgan Stanley was the top financial adviser on U.S. Public M&A deals announced in July 2015.
|Rank||Firm||Equity Value $bil|
Through the end of July, Goldman Sachs claimed the lead with $351 million in fees already disclosed. Centerview Partners held on to second place among financial advisors in disclosed fees. Morgan Stanley rounded out the top three in disclosed fees.
The pace of issuance of SEC registered high-yield new issues decreased 38.1% in the July with $1.75 billion pricing during the month down from $2.82 billion in June.
The level of covenant protection also decreased in deals issued during the month. In July, 52% of high-yield deals had limitations on restricted payments covenants compared to 71% of new issues priced in the last twelve months. Limitations of indebtedness covenants were also present in only 38% of July's new issues compared to 76% of deals priced in the last twelve months.