Presentation to Carnegie Mellon University
September 2003
Table of Contents
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
"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.
2 | Wachovia Securities Corporate & Investment Banking
University
Overview
Overview
Industry Trends
CONSOLIDATION / ATTRITION
CONVERGENCE OF CORPORATE
AND INVESTMENT BANKING
IMPORTANCE OF CAPITAL AND
BALANCE SHEET STRENGTH
CROSS SELLING OF BROAD
PRODUCT CAPABILTIES
WHAT WILL DETERMINE
SUCCESS IN THIS NEW
ENVIRONMENT?
CREATION OF NEW MARKETS AND
FINANCIAL INSTRUMENTS
EMERGENCE OF NEW CLASSES OF
INSTITUTIONAL INVESTORS
4 | Wachovia Securities Corporate & Investment Banking
University
Overview
Wachovia Corporation - Superior Market Share and Distribution Powerhouse
Management:
Headquarters:
G. Kennedy Thompson
Chairman, President & CEO
Charlotte, North Carolina
U.S. Rankings: Largest deposit share on East Coast; 3rd
largest share in U.S.
2nd largest cash management
provider
3rd largest branch network
3rd largest brokerage firm
5th largest in assets
Total Assets:
$348 Billion
Loans:
$164 Billion
Deposits:
$196 Billion
Customers:
20 million
Employees:
Over 80,000
Market Capitalization of Banks
Dollars in Billions
Citigroup (C)
Bank of America (BAC)
Wells Fargo (WFC)
J.P. Morgan Chase (JPM)
Wachovia (WB)
Morgan Stanley Dean Witter (MWD)
Merrill Lynch (MER)
US Bancorp (USB)
Bank One (ONE)
Goldman Sachs (GS)
FleetBoston Financial (FBF)
Bank of New York (BK)
SunTrust (STI)
Lehman Brothers (LEH)
Bear, Stearns & Co. (BSC)
$ 229.4
121.7
84.4
67.4
57.5
53.1
48.1
45.9
45.2
40.7
31.6
22.6
16.7
15.5
6.9
As of March 31, 2003
5 | Wachovia Securities Corporate & Investment Banking
University
Overview
Wachovia Corporation
•
•
One of the largest full-service institutions in the financial services industry.
#1 stock performer in the financial services industry since 2002.
2002 to YTD Stock Price Performance of
Selected Financial Institutions
50%
40%
37.9%
27.9%
30%
17.1% 15.6% 15.0%
20%
10%
1.3%
0%
-2.2%
-10%
-2.9%
-4.3%
-6.9%
-9.6%
-20%
-13.5% -13.7%
-16.8%
-30%
-29.3%
-40%
WB
BAC
BSC
USB
WFC
ONE
6 | Wachovia Securities Corporate & Investment Banking
LEH
MER
STI
GS
Note: As of 8/8/03.
Source: Bloomberg.
JPM
C
MWD
FBF
BK
University
Overview of Wachovia Securities
Strong Investment Banking Momentum
•
In a trying two year period for Wall Street, Wachovia Securities dramatically improved its relative positioning
in all major capital markets sectors.
EQUITY
CONVERTS
Wachovia Securities
$20
$18.1
$15
$10
$5
54
$5.9
32
$0
2000
Wachovia Securities
Wall Street
$200
$175
$150
$125
$100
$75
$50
Wall Street
$10
$181.6
$8
825
$98.2
535
2002
2000
$5.6
$6
$4
$2
$0
2002
17
$1.1
4
2000
2002
INVESTMENT GRADE
Wachovia Securities
$125
$100
$75
$50
$25
$0
$800
$600
$31.4
389
$200
88
2000
$400
Wachovia Securities
$53.8
141
119
2000
2002
Wall Street
$20
$623.0
$546.0
2,684
$5
$0
2000
$80
$14.6
$15
$10
2,736
$0
2002
$60.7
HIGH YIELD
Wall Street
$113.0
$100
$80
$60
$40
$20
$0
2002
$5.5
46
11
$60
$66.6
$51.3
$40
$20
148
261
$0
2000
2002
2000
2002
*Note: Y axis indicates dollar volume and the numbers within bars are number of deals. Data above bars is dollar volume in billions.
7 | Wachovia Securities Corporate & Investment Banking
University
Overview
Corporate & Investment Banking
•
Mid-capitalization client focus.
•
Broad product and distribution capabilities.
•
Large capital base.
•
Fully integrated business model.
•
Business model built for success in the new age of corporate and investment banking.
8 | Wachovia Securities Corporate & Investment Banking
University
Corporate & Investment Banking Platform
Corporate & Investment Banking Platform
Wachovia’s Corporate & Investment Banking Platform
General
Bank
Asset
Based
Lending
Corporate &
Investment
Banking
Derivatives
Capital
Management
Asset
Backed
Finance
Fixed Income
Sales &
Trading
Investment
Grade
Debt
Wealth
Management
Cash
Management
Public
Equity
CIB Origination
Senior
Debt
Loan
Syndications
Mergers &
Acquisitions
Principal
Investing
10 | Wachovia Securities Corporate & Investment Banking
High
Yield
Debt
Private
Placements
Convertible
Securities
University
Corporate & Investment Banking Platform
Leading Capital Markets Capabilities
Public Equity 2002
Rank
1
2
3
4
5
5
7
8
9
10
11
12
13
14
15
Manager
Credit Suisse First Boston
Salomon Smith Barney
UBS Warburg
Merrill Lynch
JP Morgan
Banc of America Securities
Morgan Stanley
Goldman Sachs
Lehman Brothers
Bear Stearns
Wachovia Securities
Deutsche Bank
CIBC World Markets
A.G. Edwards
Raymond James
Investment Grade Debt
High Yield
2002 2002
Number
119
109
106
100
81
81
78
76
74
61
54
53
49
44
40
Rank
1
2
3
4
5
6
7
8
9
10
11
11
13
14
15
Leveraged Loan Syndications 2002
Rank
1
2
3
4
4
6
7
8
9
10
11
12
13
14
15
Lead Arranger
Bank of America
JP Morgan
BANK ONE
Wachovia Securities
FleetBoston
Wells Fargo
General Electric Capital Corp.
Deutsche Bank
ABN AMRO
Citigroup
Credit Suisse First Boston
Lehman Brothers
Goldman Sachs
UBS Warburg
TD Securities
Manager
JP Morgan
Credit Suisse First Boston
Deutsche Bank
Banc of America Securities
Salomon Smith Barney
Wachovia Securities
Lehman Brothers
UBS Warburg
Morgan Stanley
BANK ONE
Bear Stearns
Goldman Sachs
Merrill Lynch
CIBC World Markets
Dresdner Kleinwort Wasserstein
Convertible 2002
Convertible 2002
Number
87
82
78
73
65
47
38
36
28
26
25
25
24
23
11
High Yield
Investment
2002 Grade Debt 2002
Number
392
192
105
99
99
74
70
69
64
62
47
26
19
18
13
11 | Wachovia Securities Corporate & Investment Banking
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Manager
Bank of America
Salomon Smith Barney
Merrill Lynch
JP Morgan
Wachovia Securities
ABN AMRO
UBS Warburg
Morgan Stanley
Lehman Brothers
BANK ONE
Credit Suisse First Boston
Deutsche Bank
Goldman Sachs
Barclays Capital
BNP Paribas
Rank
1
2
3
3
5
6
7
8
9
10
11
12
12
14
14
Manager
Salomon Smith Barney
Banc of America Securities
JP Morgan
Merrill Lynch
Credit Suisse First Boston
Goldman Sachs
Lehman Brothers
Morgan Stanley
Wachovia Securities
BANK ONE
UBS Warburg
ABN AMRO
Deutsche Bank
Bear Stearns
Scotia Capital
Number
48
38
37
37
32
25
21
19
17
15
14
11
11
10
10
Mergers & Acquisitions
Mergers & Acquisitions
2002 (<$250MM)
2002 (<$250MM)
Number
1041
645
549
541
389
320
311
304
286
285
276
223
203
174
143
Rank
1
2
3
4
5
6
7
7
9
9
11
11
11
11
11
Manager
Houlihan Lokey Howard & Zukin
Credit Suisse First Boston
JP Morgan
Salomon Smith Barney
Lehman Brothers
Grant Thornton LLP
RBC Capital Markets
Goldman Sachs
Wachovia Securities
Daniels & Associates
CIBC World Markets
Banc of America Securities
Merrill Lynch
Morgan Stanley
FleetBoston
Number
50
47
31
24
23
22
18
18
17
17
15
15
15
15
15
University
Corporate & Investment Banking Platform
Comprehensive Product Capabilities
Middle Market Companies
Capital Raising
Idea Generation
WACHOVIA
Corporate & Investment Banking
FIXED INCOME
LOAN
SYNDICATIONS
• 7th for domestic high
yield
• 7th in leveraged lead
•
arranged transactions and
5th in investment grade •
• 62 investment grade debt
lead arranged transactions
offerings in 2002; raising
in Q1 2003
over $31 billion. Ranked
•
• 72 agent only transactions
7th in Q1 2003
for $26.5 B (#5) in Q1
• Leading provider of
2003
interest rate, currency and
• Ranked 7th in Institutional
equity derivatives
lead arranged transactions •
in Q1 2003
EQUITY CAPITAL
MARKETS
13th in equity
underwriting for Q1 2003
Managed 6 deals in Q1
2003, raising over $743M
Combination with
Prudential creates 3rd
largest retail brokerage
firm in the U.S. with over
$537B in client assets
Integrated managed
offering, restricted block
trading and corporate
finance services team
DEBT PRIVATE
PLACEMENTS
• 4th in traditional private
placements transactions
for 2002 (#issues)
M&A
ADVISORY
• Over 360 transactions
completed since 1996
PRINCIPAL
INVESTING
ASSET BACKED FINANCE
• Direct investments of
• 1st in 1997-1Q 2003 as
more than $2.5B in over
lead manager for public
200 companies since 1988
equipment-backed issues
• Leading M&A advisor
• 11 traditional private
serving growing
• 12th in volume of public
• Fund commitments of
placement transactions
companies since 1975
and private issuances for
more than $2B in over 200
completed in 2002, raising • Sellside, buyside, strategic funds
1Q 2003, $4.5B issued
over $1 billion in proceeds
financial advisory,
• 1st in SBA 7(a),
• Providing senior debt,
takeover defense and
conventional, and middle
synthetic leases, credit
special committee
market commercial loan
tenant leases and
presentation experience
issuance 2000-1Q 2003
investment and non•
Rank in the top 3 in third
investment grade
party home equity
transactions
securitization
TREASURY SERVICES
• 2nd largest cash
management provider
Capital Finance
• 1st in trade receivable
transactions
• One of the nation’s largest • 3rd largest bank owned
lockbox networks (#2
leasing company in U.S.
retail and #3 wholesale)
• 4th in trade receivable
• Ranked in the top two
commitments
providers in eight of 11
• 9th largest leasing
product categories by
company in U.S.
Ernst & Young, top four
• Total commitments in
providers in all 11
excess of $7 billion for
2003
As of March 31, 2003
12 | Wachovia Securities Corporate & Investment Banking
University
Corporate & Investment Banking Platform
Integrated Corporate & Investment Banking Coverage Model
Consumer & Retail
Defense & Aerospace
Energy & Power
Financial Institutions
Healthcare
Industrial Growth
International
IT & Business Services
Media &
Communications
Real Estate
Strategic Advisory
Group
Technology
Public Equity
Mergers &
Acquisitions
Wealth
Management
High Yield Debt
Loan Syndications
Investment Grade
Debt
Asset Securitization
Convertible
Securities
Private Placements
Derivative Securities
Congress Financial
Asset Based Lending
Leasing
Asset Based Conduit
Finance
Cash Management
13 | Wachovia Securities Corporate & Investment Banking
University
Corporate & Investment Banking Product Expertise
Corporate & Investment Banking Product Expertise
Fixed Income
•
Interest Rate Products:
– $300 million of revenues/80 employees.
– 4th largest swap and 4th largest OTC Option
portfolios among all U.S. Commercial Banks as
of 12/31/02.
– Based on customer sources, #2 in Mortgage
options over the past 3 ½ years with trading
volume between $120 to 180 billion annually (no
published numbers).
•
Credit Products:
– $300 million of revenues/184 employees.
– High Yield:
> Lead or co-manager in 20% of deals done in
market in 2002 and 2003.
> #6 in High Yield Domestic Deals issuance.
– High Grade:
> Lead manager on 40 deals raising $12.2
billion in 2002.
> #5 in High Grade (# of deals).
15 | Wachovia Securities Corporate & Investment Banking
•
Structured Products:
– $650 million of revenues/490 employees.
– Structured Credit Products:
> #3 in overall CDO issuance and #1 in RE
CDO issuance in 2002.
> #1 in Middle Market CLO issuance in 2002.
– Commercial ABS Finance:
> #1 in equipment ABS issuance by the 19972002 total volume.
– Real Estate Capital Markets:
> #8 in Floating Rate Loan Issuance , #1 in
Commercial RE Lending.
> #2 Commercial Mortgage Loan Contributor
to CMBS deals, # 8 Mortgage Loan
Contributor to domestic deals, # 8 US
CMBS Bookrunner.
•
Non-Dollar Products:
– $120 million of revenues/50 employees.
– Offer 24 hour trading and marketing with an
extensive coverage in spot, forward, option,
interest rate swaps and options, with customized
solutions.
University
Corporate & Investment Banking Product Expertise
Equity
Experienced Leadership
•
•
•
•
•
•
•
327 experienced professionals focused exclusively
on growing, dynamic companies driving industry
change.
Proven managed offering underwriter.
– Revenue up 25%, Wall Street down 30% in 2002.
– 15 year institutional relationships.
– Wall Street leading retail stock retention.
– Consistent after-market trading support.
32 senior research analysts covering over 350
companies (average analyst covers 10-12
companies).
Franchise approach to coverage vs. “I.I.” model.
43 equity salespeople covering over 600 accounts in
the U.S. and Europe.
Recently completed Prudential combination creates
the third largest retail brokerage firm in the U.S.
Integrated managed offering, restricted block trading
and corporate finance services team dedicated to
designing optimal client solutions.
Head Titles
Former Position
Mickey Misera
Mike Cummings
Clinton Daly
Mike Murphy
Chris Bartlett
Jim Whelen
Billy Nolan
Anthony Gallo
Todd Wickwire
Equity Group
ECM Desk
Institutional Sales
Coverage Trading
OTC Trading
Listed Trading
Equity Marketing
Co-Head Research
Co-Head Research
Head of Trading at Alex. Brown
Head of Equity Origination at WFS
Head of Inst. Sales at Alex. Brown
Equity Trader at Alex. Brown
Top OTC Trader at Alex. Brown
Listed Trader at Alex. Brown
Inst. Salesman at Alex. Brown
I.I. Analyst at Alex. Brown
Inst. Salesman at Alex. Brown
21
10
21
31
18
16
10
10
12
Strong Momentum in a Difficult Market
($ in Millions)
2000
2001
2002
Number of Offerings
Wachovia Offerings
Total Wall Street Offerings
Wachovia Market Share
32
61
54
806
542
485
4.0%
11.3%
11.1%
$6,238.7
$16,461.6
$17,010.8
$180,919.4
$116,502.6
$89,414.9
3.4%
14.1%
19.0%
Dollar Volume
Wachovia Offerings
Total Wall Street Offerings
Wachovia Market Share
16 | Wachovia Securities Corporate & Investment Banking
Years of
Experience
Name
University
Corporate & Investment Banking Product Expertise
High Yield
•
•
Superior execution:
– Involved as lead or co-manager in 20% of deals
done in market in 2002 and 2003.
– Since 1996:
> No deal priced outside of price talk.
> No failed or pulled transactions.
> 4th best default record as measured by
Bondweek.
Wachovia Volume ($'s in Billions)
•
Growth In Market Share
$22.2
$24.0
$18.0
$14.6
$12.1
$12.0
$6.0
$5.4
$0.0
2000
#11
2002
#6
YTD ' 03 Ann.
League Table
Over $1 billion of capital committed to trading desk.
Significant momentum:
– Wachovia’s high yield new issuance increased by
21% in 2002 in the face of a market that was
down 26%.
2001
#8
High Yield League Table
Full Credit to Each Manager - Domestic Deals
2002
Rank
1
2
3
4
5
6
7
8
9
10
Institution
JP Morgan
CSFB
Deutsche Bank
Banc of America
Salomon Smith Barney
Wachovia Securities
Lehman Brothers
UBS Warburg
Morgan Stanley
Goldman Sachs
Number of
Issues
87
82
78
73
65
46
38
36
28
25
Proceeds
(in millions)
$
25,293
19,583
21,939
23,356
21,824
14,645
10,010
10,117
8,508
8,406
Note: Ranks underwriters with book-managed deals; multi-tranche deals counted once.
Source: Wachovia Securities
17 | Wachovia Securities Corporate & Investment Banking
University
Corporate & Investment Banking Product Expertise
Loan Syndications
•
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.
18 | Wachovia Securities Corporate & Investment Banking
University
Corporate & Investment Banking Product Expertise
Mergers & Acquisitions
•
Market Performance
– 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.
•
Wachovia Impact
– 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.
19 | Wachovia Securities Corporate & Investment Banking
University
Corporate & Investment Banking Product Expertise
Capital Finance
•
•
Asset Backed Lending:
– Bank asset-based lending presence since 1972.
– Total commitments in excess of $3.5 billion.
– Active relationships with over 190 clients
nationwide.
– Staff of 140 professionals with specialists in the
areas of:
> Collateral evaluation & Monitoring
> Underwriters
> Field examination
> Portfolio management
> Origination & Structuring
Asset Backed Conduit Program:
– As of May 15, 2003, ranked 4th in Trade
Receivable Commitments.
– 1st in net Trade Receivable Transactions for the
period January 15, 2000 to May 15, 2003.
– Lead or Sole Agent on Eighty-two percent of
transactions.
– 2 warehouse vehicles: Variable Funding Capital
Corp. (“VFCC”) and Blue Ridge. As of May 15,
2003, Blue Ridge held approximately:
> 56 deals.
> $6.6 billion in commercial paper purchase
limits; and
> $3.1 billion in commercial paper
outstanding.
20 | Wachovia Securities Corporate & Investment Banking
•
•
Leasing:
– 3rd largest bank owned leasing company in U.S..
– 9th largest leasing company in U.S..
– $14 billion in lease receivables.
– Projected to complete more than $2.5 billion in
equipment cost by FYE 2003.
– Since 1994, completed more than $30 billion in
transactions.
– Awarded “Deal of the Year” by Asset Finance
International: 1997, 1999, 2000, 2001 & 2002
Congress Financial:
– Began more than 50 years as a family owned
business
> Owned by Core States for 30 years.
> Integrated within Wachovia in 1988.
– Offices throughout U.S., Canada, and the United
Kingdom including New York, NY, Montreal,
Quebec and London, England..
– Projected to complete more than 100 new
transactions by FYE 2003.
University
Analyst Career Opportunities
Analyst Career Opportunities
Analyst Career Opportunities
•
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.
22 | Wachovia Securities Corporate & Investment Banking
University
Analyst Career Opportunities
Capital Finance
Group Overview
•
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.
Analyst Responsibilities
•
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.
23 | Wachovia Securities Corporate & Investment Banking
University
Analyst Career Opportunities
Credit Capital Markets
Group Overview
•
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
Analyst Responsibilities
•
•
•
•
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.
24 | Wachovia Securities Corporate & Investment Banking
University
Analyst Career Opportunities
Fixed Income – Interest Rate Products & Non-Dollar Products
Group Overview
•
•
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.
Non-Dollar Products:
– 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 Responsibilities
•
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.
25 | Wachovia Securities Corporate & Investment Banking
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Analyst Career Opportunities
Fixed Income – Credit Products & Structured Products
Group Overview
•
Credit Products:
– 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.
•
Structured Products:
– 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.
Analyst Responsibilities
•
•
•
•
•
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
26 | Wachovia Securities Corporate & Investment Banking
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Analyst Career Opportunities
Investment Banking - Corporate Finance
Group Overview
•
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.
Analyst Responsibilities
•
•
•
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.
27 | Wachovia Securities Corporate & Investment Banking
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Analyst Career Opportunities
Investment Banking - Origination & Execution
Group Overview
•
•
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.
Analyst Responsibilities
•
•
•
•
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.
28 | Wachovia Securities Corporate & Investment Banking
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Analyst Career Opportunities
Investment Banking - M&A/Financial Sponsors
Group Overview
•
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.
Analyst Responsibilities
•
•
•
•
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.
29 | Wachovia Securities Corporate & Investment Banking
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Analyst Career Opportunities
After The Analyst Program
•
Following the conclusion of the program, analysts have pursued a variety of career options, including
corporate clients and the following representative equity firms and graduate schools.
Private Equity Groups
Graduate Schools
Advent International
J.H. Whitney
Dartmouth College - Tuck
Apollo Management
Quad-C
Duke University - Fuqua
Bruckmann, Rosser, Sherrill
Olympus Partners
Harvard Business School
Carousel Partners
Saunders Karp & Megrue
Harvard Law School
Centre Partners Management
Thayer Capital Partners
Northwestern University - Kellogg
Code Hennessy & Simmons
The Blackstone Group
Stanford Graduate School of Business
Cornerstone Equity Investors
The Carlyle Group
University of Chicago Graduate School of Business
Evercore Partners
Thomas Weisel Capital Partners
University of North Carolina - Kenan Flagler
GTCR Golder Rauner
Wachovia Capital Partners
University of Pennsylvania - Wharton
JP Morgan Partners
William Blair Capital Partners
Yale Law School
30 | Wachovia Securities Corporate & Investment Banking
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Why Wachovia Securities?
Why Wachovia Securities?
The Analyst Experience
•
Wall Street caliber experience.
•
Small deal teams result in immediate responsibility.
– Allows for direct access to senior bankers.
– Allows for direct and frequent client interaction.
•
Middle market client base provides more interaction with senior-level decision makers.
•
Comprehensive financial services platform provides variety of career opportunities in multiple locations.
•
Senior bankers actively support efforts to develop career opportunities at conclusion of analyst program.
•
Intensive training program.
32 | Wachovia Securities Corporate & Investment Banking
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What this means for you
•
•
•
•
•
•
•
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).
33 | Wachovia Securities Corporate & Investment Banking
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Recruiting Process
Recruiting Process
ON CAMPUS INTERVIEWS
SELECTION OF FINAL
CANDIDATES
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
35 | Wachovia Securities Corporate & Investment Banking
University
Recruiting Information
CAMPUS DATES
Campus Interviews:
October 8, 2003
Super Saturdays:
October 25, 2003
November 1, 2003
November 15, 2003
November 22, 2003
December 6, 2003
CONTACT INFORMATION
School Captains:
Barbara Hall
Loan Syndications
barbara1.hall@wachovia.com
College Recruiting Contact:
Melissa Hunter
CIB Analyst Recruiter
melissa.hunter@wachovia.com
Brian Grabenstein
Fixed Income, Structured Products
brian.grabenstein@wachovia.com
Ernie May
Credit Capital Markets, Agency Management
mark.weir@wachovia.com
36 | Wachovia Securities Corporate & Investment Banking
University
Appendix
APPENDIX
Selected Closed Transactions
Follow-On
Offering
Initial Public
Offering
Convertible
Debt
Initial Public
Offering
Loan Syndications
High Yield
Follow-On
Offering
Asset
Securitization
Initial Public
Offering
38 | Wachovia Securities Corporate & Investment Banking
Asset
Securitization
Capital
Management
Senior
Notes
Equity
Derivatives
Loan
Syndications
Currency
Derivatives
University
APPENDIX
Selected Closed Transactions
Capital
Management
Loan
Syndications
Convertible
Notes
Convertible
Securities
Senior
Notes
Initial Public
Offering
39 | Wachovia Securities Corporate & Investment Banking
Investment
Grade Debt
Loan
Syndications
Loan
Syndications
Asset
Securitization
Loan
Syndications
Asset
Securitization
Investment
Grade Debt
Loan
Syndications
Loan Syndications
University
APPENDIX
Selected Closed Transactions
Follow-On
Offering
Follow-On
Offering
Follow-On
Offering
Mergers &
Acquisitions
Loan
Syndications
Loan Syndications
Mergers &
Acquisitons
Loan Syndications
Loan Syndications
Senior
Notes
Senior
Notes
Asset-Based
Lending
Fixed Income
Derivatives
Senior
Notes
40 | Wachovia Securities Corporate & Investment Banking
Loan Syndications
University
APPENDIX
Selected Closed Transactions
Asset
Securitization
Asset-Based
Lending
Investment
Grade Debt
Follow-On
Equity Offering
Fixed Income
Derivatives
International Cash
Management
Loan
Syndications
Loan
Syndications
Convertible
Securities
Initial Public
Offering
High Yield &
Loan Syndications
Initial Public
Offering
Loan
Syndications
Loan
Syndications
Cash
Management
41 | Wachovia Securities Corporate & Investment Banking
University
APPENDIX
Selected Closed Transactions
Asset Backed
Lending
Asset Based
Lending
Asset Backed
Lending
Asset Backed
Lending
Leasing
Leasing
Leasing
Congress Financial
Congress Financial
Congress Financial
Asset Backed
Conduit Finance
Asset Backed
Conduit Finance
Asset Backed
Conduit Finance
Asset Backed
Conduit Finance
Asset Backed
Lending
42 | Wachovia Securities Corporate & Investment Banking
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