Presentation to Carnegie Mellon University September 2003
I. Overview II. Corporate & Investment Banking Platform III. Corporate & Investment Banking Product Expertise IV. Analyst Career Opportunities V. Why Wachovia Securities? VI. Recruiting Process Appendix Table of Contents "Wachovia Securities" is the trade name for the corporate and investment banking services of Wachovia Corporation and its subsidiaries. Debt and equity underwriting, trading, research and sales, loan syndications agent services, and corporate finance and M&A advisory services are offered by Wachovia Securities, Inc., member NASD, NYSE and SIPC. Mezzanine capital, private equity, municipal securities trading and sales, cash management, credit, international, leasing and risk management products and services are offered by various non-broker dealer subsidiaries of Wachovia Corporation.
Industry Trends Overview WHAT WILL DETERMINE SUCCESS IN THIS NEW ENVIRONMENT? IMPORTANCE OF CAPITAL AND BALANCE SHEET STRENGTH CONSOLIDATION / ATTRITION CONVERGENCE OF CORPORATE AND INVESTMENT BANKING CROSS SELLING OF BROAD PRODUCT CAPABILTIES CREATION OF NEW MARKETS AND FINANCIAL INSTRUMENTS EMERGENCE OF NEW CLASSES OF INSTITUTIONAL INVESTORS
327 experienced professionals focused exclusively on growing, dynamic companies driving industry change.
Proven managed offering underwriter.
Revenue up 25%, Wall Street down 30% in 2002.
15 year institutional relationships.
Wall Street leading retail stock retention.
Consistent after-market trading support.
32 senior research analysts covering over 350 companies (average analyst covers 10-12 companies).
Franchise approach to coverage vs. “I.I.” model.
43 equity salespeople covering over 600 accounts in the U.S. and Europe.
Recently completed Prudential combination creates the third largest retail brokerage firm in the U.S.
Integrated managed offering, restricted block trading and corporate finance services team dedicated to designing optimal client solutions.
Equity Corporate & Investment Banking Product Expertise Strong Momentum in a Difficult Market Experienced Leadership Co-Head Research 12 Years of Name Head Titles Former Position Experience Mickey Misera Equity Group Head of Trading at Alex. Brown 21 Mike Cummings ECM Desk Head of Equity Origination at WFS 10 Clinton Daly Institutional Sales Head of Inst. Sales at Alex. Brown 21 Mike Murphy Coverage Trading Equity Trader at Alex. Brown 31 Chris Bartlett OTC Trading Top OTC Trader at Alex. Brown 18 Jim Whelen Listed Trading Listed Trader at Alex. Brown 16 Billy Nolan Equity Marketing Inst. Salesman at Alex. Brown 10 Anthony Gallo Co-Head Research I.I. Analyst at Alex. Brown 10 Todd Wickwire Inst. Salesman at Alex. Brown
Consistently ranked as a top 5 Lead Arranger in every broad market category.
Successfully executed over 700 transactions since 1998, raising in excess of $115 billion.
The Syndications group includes over 140 professionals dedicated to leading market knowledge and superior transaction execution in the syndicated loan market, including origination, underwriting, syndicate, sales, trading, agency management and market research.
Proven, award-winning ability to structure and execute a diverse array of syndicated loans, from working capital facilities to highly structured, complex leveraged buyouts.
Recipient of International Finance Review’s “U.S. Leveraged Loan of the Year” award two years running:
$2.7 billion acquisition financing for Suiza Food’s purchase of Dean Foods in 2001.
$1.49 billion leveraged loan associated with the Qwest-Dex East portion of the total $7.05 billion leveraged buyout of Qwest’s yellow pages assets by The Carlyle Group and Welsh, Carson, Anderson & Stowe in 2002.
Exceptional distribution capabilities via our Sales and Trading professionals, who maintain strong relationships with over 300 investors.
Top-rated par loan trading desk to provide secondary market support and market color to our investors. Our par loan trading team executed over $3.5 billion in total trading volume during 2002.
Research professionals dedicated to identifying and analyzing trends in the syndicated loan market to provide insight and commentary to our issuers and investors.
The anticipated recovery in M&A activity has yet to arrive ...although a surge in activity in the first few weeks of July is hopeful.
M&A volume in the first six months of 2003 showed little in the way of a renewed fervor to buy companies, shed divisions or consolidate operations in the same manner that had occurred in the late 1990’s.
First Half 2003 domestic M&A activity decreased 17% from a year ago, while worldwide activity decreased 6%. Based on current trends, US M&A dollar volume this year is on track to finish below 2002’s announced total of $439.4 billion, and would mark the third straight year of declining volume.
Despite the statistics, there is a strong view among PEGs that deal flow has increased significantly in the past six weeks. Combined with the recent lift in announced deal activity, M&A volumes should show some increases in the second half.
Despite a declining market, Wachovia Securities’ gained significant market share with announced deal volume more than doubling ($1.7B to $4.9B) in the first half of 2003.
Wachovia Securities is looking to hire over 130 analysts for the class of 2004 to work across a broad range of industries and product groups, including:
Capital Finance Analyst:
Provides hands on training in structuring financial solutions for companies involved in leveraged and management buyouts, refinancing of bank debt or comprehensive debt restructuring, and the acquisition of large equipment.
Credit Capital Markets Analyst:
Responsible for the active management of the return, diversity, and quality of Wachovia's overall corporate banking loan portfolio, while also serving as the primary contact point for clients, participant lenders, and agent banks on a wide range of issues or needs related to credit and capital commitments provided by Wachovia to individual client relationships.
Fixed Income Analyst: Provides fixed income products and risk management solutions including Interest Rate Products, Non-Dollar Products, Credit Products, and Structured Products through origination, asset management, sales, trading, and research .
Investment Banking Analyst:
Corporate Finance - Deliver proprietary ideas and advisory services to priority corporate clients. Work closely with all product groups to originate and execute certain investment banking products (high yield, equity, M&A, etc.).
Loan Syndications - Execute, structure, and market all senior debt and high yield products
M&A - Execute buyside, sellside, and advisory assignments in a variety of industries and assist in relationship management for key financial sponsor clients.
Analyst Career Opportunities Analyst Career Opportunities
Wachovia Capital Finance offers alternative financing solutions for clients generally not suited to traditional bank approaches. These solutions include asset-based lending, leasing, and rail services; all of which are tailored to meet any financing objective.
Capital Finance works to maximize a client’s borrowing capacity through leveraging its business assets such as account receivables, inventories, machinery and equipment, real estate and certain intangibles.
Assist in underwriting, deal execution, and business planning activities
Participate in client meetings, due diligence and other client interactions.
Model financial projections, structure senior loans and perform on-going administration.
The Portfolio Management team has responsibility for the borrowing/credit relationships of the corporate banking clients. In its role, the various Portfolio Management units interact directly with these clients; monitor the changing risk trends of individual client relationships; routinely assess the evolving mix of loans in the portfolio; and actively manage the diversity and return of the assets held in the portfolio
Credit Capital Markets Analyst Career Opportunities
Prepare primary assessments of and recommendations on client borrowing requests, as well as secondary market debt trading opportunities.
Perform transaction valuation analysis and prepare financial models.
Monitor and prepare summary updates on changing trends in the respective industries and financial markets in which Wachovia’s clients operate.
Participate in due diligence activities, client interactions, and market trading activity assessment in conjunction with senior bankers and credit officers.
Fixed Income – Interest Rate Products & Non-Dollar Products Analyst Career Opportunities
Support marketers and traders by:
Structuring and executing client transactions.
Preparing marketing materials including pitch books, analytical graphs, and capital structure analysis.
Providing market data and pricing indications on a daily basis to bank clients.
Coordinating with Relationship Managers and Credit Officers to facilitate the closing of transactions.
Researching company financial disclosures for immediate opportunities and new business.
Interest Rate Products:
Specialized structuring teams focused on institutional, corporate, commercial, and tax-exempt hedging needs with experienced professionals in each of these unique disciplines.
Analyzes and implements strategies in cost-effective ways that are responsive to changing market conditions through specific marketing and trading efforts.
Offers a full range of products and services designed to help corporations and investors manage their foreign currency exposure.
Emphasizes a consultative approach to solve the global risk management needs of clients including global debt strategy, foreign interest rate management, and currency hedging.
Analyst Career Opportunities Fixed Income – Credit Products & Structured Products
Perform analysis of various ABS assets.
Assist in the creation of pitches, proposals, and marketing materials.
Participate in client meetings.
Gain understanding of fixed income markets and operational support of traders.
Acquire Series 7 and Series 63 licenses
Focused group specializing in corporate bond origination, sales and trading, high yield origination, sales and trading, municipal securities origination, sales and trading, money market trading and research.
Credit research focused on industry reports and issuer profiles.
Group of over 500 professionals engaged in origination, asset management, sales and trading of structured products in the areas of commercial mortgage backed securities, residential mortgage and consumer ABS, commercial ABS, and CDOs.
The Corporate Finance Group is the origination arm of Wachovia Securities, working closely with all product groups to originate and execute various investment banking products, including equity, high yield, M&A, loan syndications, convertible debt, etc.
Bankers within Corporate Finance are assigned to a specific industry group (see page.11) and maintain active dialog with their priority clients in those sectors.
Investment Banking - Corporate Finance Analyst Career Opportunities
Perform valuation and credit analysis through sophisticated leveraged buyout, discounted cash flow, merger, comparable public company and comparable transaction models .
Create and edit pitchbooks used in the origination of investment banking transactions .
Participate in due diligence, drafting sessions and preparing offering memoranda and management presentations primarily for equity, high yield and M&A transactions.
Assist in the origination, structuring, execution and servicing of Loan Syndications and High Yield debt offerings for all corporate customers and private equity groups in certain industries for acquisitions, recapitalizations, LBOs and growth financings.
Serve as senior “deal manager” to execute all senior debt underwriting, due diligence, and marketing documents and materials, and manage internal credit and pricing approval processes.
Investment Banking - Origination & Execution Analyst Career Opportunities
Prepare offering memorandums, lender, rating agency and roadshow materials for debt offerings.
Perform valuation analysis and develop financial models.
Research comparable transactions and perform relative value analysis to determine pricing for securities.
Participate in client meetings, due diligence visits and other client interactions.
The Mergers & Acquisitions/Financial Sponsors Group is responsible for transaction execution of buyside, sellside, and advisory assignments in a variety of industries, as well as relationship management for key financial sponsor clients.
Senior bankers within M&A are aligned with Corporate Finance industry groups and are responsible for maintaining an active M&A dialogue with clients in their respective sectors.
Analysts and Associates in M&A are generalists and work on transactions in a broad range of industries.
Investment Banking - M&A/Financial Sponsors Analyst Career Opportunities
Creation of detailed financial models used for valuation (DCF, LBO, merger plans, accretion/dilution, comparable company, and transaction analysis).
Research and preparation of industry analyses, buyers lists, and acquisition opportunities.
Preparation of marketing documents, including pitch materials, confidential offering memoranda, management presentations, fairness opinions, and board presentations.
Support of the relationship management efforts of Financial Sponsors Group coverage officers through the development of value-added ideas, preparation of marketing presentations, and execution of M&A and financing opportunities.
The Analyst Program will expose you to a broad range of responsibilities, a diverse mix of financial products, and an excellent opportunity to increase the depth of your understanding of the financial markets.
The Analyst is the primary analytical support for corporate and investment bankers in the design and origination of corporate and investment banking transactions.
As an Analyst, you will be conducting research, participating in strategic planning and assisting in the execution of advisory services, attending client meetings/due diligence visits and gaining exposure to key executives and senior bankers.
The Analyst provides these services as part of a team consisting of Associates, Vice Presidents, and Managing Directors.
These positions require a high level of personal motivation, strong interpersonal communication skills and sound analytical thinking.
Candidates must be comfortable working independently and as part of a team, have proven academic performance and be willing to take on significant responsibility for meeting stringent deadlines and high quality standards.
Opportunities exist within the following lines of business: Investment Banking (includes Corporate Finance, M&A/Financial Sponsors Group, and Loan Syndications), Credit Capital Markets, Capital Finance, and Fixed Income Division(includes Credit Products, Interest Rate Products, Non-Dollar Products, and Structured Products).
Recruiting Process ON CAMPUS INTERVIEWS SUPER SATURDAY Charlotte, North Carolina Friday Evening: Presentation & Dinner Saturday: Series of 6 or 8 interviews with a debrief at the end Follow-up: Extension of final offers SELECTION OF FINAL CANDIDATES
CONTACT INFORMATION School Captains: Barbara Hall Loan Syndications [email_address] Brian Grabenstein Fixed Income, Structured Products [email_address] Ernie May Credit Capital Markets, Agency Management [email_address] Recruiting Information
Campus Interviews: October 8, 2003
Super Saturdays: October 25, 2003
November 1, 2003
November 15, 2003
November 22, 2003
December 6, 2003
College Recruiting Contact: Melissa Hunter CIB Analyst Recruiter [email_address]