October 28, 2009
Q3 was not kind to Bay Street issuers and their law firms, as the combined number of corporate debt and equity financings fell by 18% to 130 deals, from 157 in Q2. The dollar value also dropped, declining about C$7 billion to C$23.9 billion from C$31.1 billion.
Equity deals are holding, with a total of 107 deals worth C$14.6 billion, versus 114 deals in Q2 with approximately the same value. The decline has been most severe in the debt markets: in Q2, companies issued more than C$18 billion through 43 debt financings, compared with C$9.3 billion in 23 deals in Q2.
Karrin Powys-Lybbe notes that the "markets are definitely picking up. There's been enough stability in the markets over the course of the summer that people felt they were getting acceptable pricing." One positive in the recent numbers is the deal diversity: "The deals all have a different story to them," says Karrin. "They are not all structured products. There's a range of recapitalizing or doing acquisitions."