Sponsor blocks spell pain for banks, investors

摘要

It was a case of too much, too soon. Underwriting banks and investors alike suffered heavy losses on more than US$2.5bn of sponsor block trades priced last week, as a tough tape and competitive pricing saw all of these deals trade poorly in the aftermarket. On Tuesday, shares of pra health sciences, COMMSCOPE, UNITED COMMUNITY BANKS and INC RESEARCH were all priced at the low end of their reoffer ranges and traded below the levels at which banks reoffered stock to investors on behalf of the selling private equity sponsors via overnight block/risk trades.