Bloomberg News

RBC Capital Markets Combines Loan Sales Teams, Hires Sean Peters

June 07, 2011

June 7 (Bloomberg) -- RBC Capital Markets said it combined its new-issue and secondary loan sales teams as the unit of Royal Bank of Canada seeks to boost its ranking as the 10th largest underwriter of U.S. leveraged loans.

Sean Peters will join the new sales team from Citigroup Inc., according to people with knowledge of the matter, who declined to be identified because the appointment hasn’t been announced publicly. Peters said he couldn’t comment. Mark Costiglio, a Citigroup spokesman, confirmed Peters has left the bank.

Under the new structure, every sales person will market loans, high-yield and distressed debt for primary and secondary markets, Mike Meyer, head of U.S. credit at RBC Capital Markets, said in a telephone interview. The team, the majority of which is in New York, reports to Meyer and Darren Lowe, head of U.S. sales, fixed income and currencies, he said.

“We are matching our distribution with the investor base,” Meyer said. “Money managers have typically integrated with analysts and traders touching all non-investment grade products such as leveraged loans and high-yield bonds.” Meyer declined to comment about Peters.

Bank of America Corp. has made a similar move, saying in an internal memo last week that it combined most of its loan sales force into one team to be headed by Douglas Antonacci and Howard Sysler. The secondary-sales team works with traders to help sell loans that had previously been distributed. RBC Capital Markets began integrating its loans and bonds sales forces about a year ago, Meyer said.

‘Knocking on the Door’

“This is being driven not only to match the needs of our clients, but also to keep up with our overall growth,” Meyer said. “We are now in the top 10 of the loan league tables and are knocking on the door of the top ten of the high-yield league tables.”

RBC Capital Markets is the 10th largest underwriter of leveraged loans in the U.S. according to data compiled by Bloomberg, it finished 2010 as the 15th largest. It’s also the 12th largest arranger of high-yield bonds in the U.S. this year, compared with 13th biggest last year, the data show. Bank of America is the largest underwriter of leveraged loans year-to- date, while JPMorgan Chase & Co. is the biggest arranger of high-yield bonds.

In the past two months, RBC Capital Markets served as one of the lenders for TriZetto Group Inc.’s $750 million of loans and was involved in a similar-size financing for Star West Generation LLC, the energy company owned by Highstar Capital, according to Bloomberg data.

--With assistance from Donal Griffin in New York. Editors: Chapin Wright, Cecile Gutscher

To contact the reporter on this story: Kristen Haunss in New York at khaunss@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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