Talking the Talk

By Matt McCleery

As you can appreciate, we received lots of telephone calls and inquiries regarding our 2002 league table results, which were published in the April issue of Marine Money. Our approach, as we described it, was one in which the definition of “shipping” was left in the hands of banks and in which arrangers were given full credit for the transactions that they worked on.

So in this issue, we wanted to try a different, and more conventional approach, to the subject of ranking bank performance. The table below shows shipping deals that closed during 1Q 2003 using data collected by Loanware. The table below has been sorted by Mandated Lead Arranger, i.e. those banks that have been engaged by the borrower, and depicts financing activity that has occurred on the shipping desk of the banks listed below. For 2Q 2003 we will look at the league table sorted by “Bookrunner”, which is a measure used with increasing frequency in the banking markets. As we begin to rank banks more frequently by various titles, we thought it would be useful to walk our non-banker readers through the hierarchy that exists in almost every syndicated loan.

Bookrunner

The Bookrunner, who is generally one of the mandated lead arrangers, is responsible for preparing (and editing!) the Information Memorandum; organizing the Bank Meeting and preparing the slides for the Bank Meeting; talking to the potential participants; deciding (in consultation with the company) the list of the banks that would be approached to join the facility; launching the deal to the banks and essentially selling the loan to these banks.

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