presentation to carnegie mellon university september 2003
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University | Wachovia Securities Corporate & Investment Banking2
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.
University | Wachovia Securities Corporate & Investment Banking4
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
University | Wachovia Securities Corporate & Investment Banking5
Wachovia Corporation - Superior Market Share and Distribution Powerhouse
Management: G. Kennedy ThompsonChairman, President & CEO
Headquarters: 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: $196 Billion
Customers: 20 million
Employees: Over 80,000
As of March 31, 2003
Overview
Market Capitalization of Banks
Dollars in Billions
Citigroup (C) 229.4$ Bank of America (BAC) 121.7Wells Fargo (WFC) 84.4J.P. Morgan Chase (JPM) 67.4Wachovia (WB) 57.5Morgan Stanley Dean Witter (MWD) 53.1Merrill Lynch (MER) 48.1US Bancorp (USB) 45.9Bank One (ONE) 45.2Goldman Sachs (GS) 40.7FleetBoston Financial (FBF) 31.6Bank of New York (BK) 22.6SunTrust (STI) 16.7Lehman Brothers (LEH) 15.5Bear, Stearns & Co. (BSC) 6.9
University | Wachovia Securities Corporate & Investment Banking6 Source: Bloomberg.
• One of the largest full-service institutions in the financial services industry.• #1 stock performer in the financial services industry since 2002.
Wachovia Corporation
Note: As of 8/8/03.
37.9%
27.9%
17.1% 15.6% 15.0%
1.3%
-2.2% -2.9% -4.3% -6.9% -9.6%-13.5% -13.7%
-16.8%
-29.3%-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
WB BAC BSC USB WFC ONE LEH MER STI GS JPM C MWD FBF BK
Overview
2002 to YTD Stock Price Performance of Selected Financial Institutions
University | Wachovia Securities Corporate & Investment Banking7
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.
$0
$5
$10
$15
$20
2000 2002
$5.9
$18.1
EQUITYEQUITYEQUITYEQUITY
$50
$100$125$150$175$200
Wachovia Securities Wall Street
206%(46%
)
CONVERTSCONVERTSCONVERTSCONVERTS
$0
$2
$4
$6
$8
$10
$1.1
$5.6
$0
$20
$40
$60
$80
$100
410%
(11%)
INVESTMENT GRADEINVESTMENT GRADEINVESTMENT GRADEINVESTMENT GRADE
$0
$25
$50$75
$100
$125
$31.4
$113.0
$0
$200
$400
$600
$800
(12%)
Wachovia Securities
HIGH YIELDHIGH YIELDHIGH YIELDHIGH YIELD
$0
$10
$15
$20
$5.5
$14.6167%
Wachovia Securities
Wachovia Securities
*Note: Y axis indicates dollar volume and the numbers within bars are number of deals. Data above bars is dollar volume in billions.
32
54
535
82517
4
141 119
3892,736
88
2,684 26114846
11
$53.8$60.7
$181.6
$98.2
$51.3
$66.6
$546.0
$623.0
$75
$5
$0
$40
$60
$80
$20
Wall Street
Wall Street
Wall Street
2000 2002 2000 2002 2000 2002
2000 2002
260%
2000 2002 2000 2002 2000 2002
30%
Overview of Wachovia Securities
University | Wachovia Securities Corporate & Investment Banking8
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.
Overview
University | Wachovia Securities Corporate & Investment Banking10
Wachovia’s Corporate & Investment Banking Platform
Corporate & Investment Banking Platform
GeneralGeneralBankBank
Corporate &Corporate &InvestmentInvestment
BankingBanking
CapitalCapitalManagementManagement
WealthWealthManagementManagement
Mergers &Mergers &AcquisitionsAcquisitions
ConvertibleConvertibleSecuritiesSecurities
PublicPublicEquityEquity
CashCashManagementManagement
Fixed IncomeFixed IncomeSales & Sales & TradingTrading
Asset Asset Backed Backed FinanceFinance
DerivativesDerivativesAssetAssetBasedBased
LendingLending
InvestmentInvestmentGradeGradeDebtDebt
SeniorSeniorDebtDebt
LoanLoanSyndicationsSyndications
PrincipalPrincipal InvestingInvesting
HighHighYieldYieldDebtDebt
PrivatePrivatePlacementsPlacements
CIB OriginationCIB Origination
University | Wachovia Securities Corporate & Investment Banking11
Convertible 2002
Rank Manager Number1 Salomon Smith Barney 482 Banc of America Securities 383 JP Morgan 373 Merrill Lynch 375 Credit Suisse First Boston 326 Goldman Sachs 257 Lehman Brothers 218 Morgan Stanley 199 Wachovia Securities 17
10 BANK ONE 1511 UBS Warburg 1412 ABN AMRO 1112 Deutsche Bank 1114 Bear Stearns 1014 Scotia Capital 10
Leading Capital Markets Capabilities
Mergers & Acquisitions 2002 (<$250MM)
Rank Manager Number1 Houlihan Lokey Howard & Zukin 502 Credit Suisse First Boston 473 JP Morgan 314 Salomon Smith Barney 245 Lehman Brothers 236 Grant Thornton LLP 227 RBC Capital Markets 187 Goldman Sachs 189 Wachovia Securities 179 Daniels & Associates 17
11 CIBC World Markets 1511 Banc of America Securities 1511 Merrill Lynch 1511 Morgan Stanley 1511 FleetBoston 15
Investment Grade Debt 2002 Mergers & Acquisitions 2002 (<$250MM)
Rank Manager Number1 Bank of America 10412 Salomon Smith Barney 6453 Merrill Lynch 5494 JP Morgan 5415 Wachovia Securities 3896 ABN AMRO 3207 UBS Warburg 3118 Morgan Stanley 3049 Lehman Brothers 286
10 BANK ONE 28511 Credit Suisse First Boston 27612 Deutsche Bank 22313 Goldman Sachs 20314 Barclays Capital 17415 BNP Paribas 143
Leveraged Loan Syndications 2002 High Yield 2002
Rank Lead Arranger Number1 Bank of America 3922 JP Morgan 1923 BANK ONE 1054 Wachovia Securities 994 FleetBoston 996 Wells Fargo 747 General Electric Capital Corp. 708 Deutsche Bank 699 ABN AMRO 64
10 Citigroup 6211 Credit Suisse First Boston 4712 Lehman Brothers 2613 Goldman Sachs 1914 UBS Warburg 1815 TD Securities 13
Public Equity 2002 Investment Grade Debt 2002
Rank Manager Number1 Credit Suisse First Boston 1192 Salomon Smith Barney 1093 UBS Warburg 1064 Merrill Lynch 1005 JP Morgan 815 Banc of America Securities 817 Morgan Stanley 788 Goldman Sachs 769 Lehman Brothers 74
10 Bear Stearns 6111 Wachovia Securities 5412 Deutsche Bank 5313 CIBC World Markets 4914 A.G. Edwards 4415 Raymond James 40
High Yield 2002 Convertible 2002
Rank Manager Number1 JP Morgan 872 Credit Suisse First Boston 823 Deutsche Bank 784 Banc of America Securities 735 Salomon Smith Barney 656 Wachovia Securities 477 Lehman Brothers 388 UBS Warburg 369 Morgan Stanley 28
10 BANK ONE 2611 Bear Stearns 2511 Goldman Sachs 2513 Merrill Lynch 2414 CIBC World Markets 2315 Dresdner Kleinwort Wasserstein 11
Corporate & Investment Banking Platform
University | Wachovia Securities Corporate & Investment Banking12
Comprehensive Product Capabilities
PRINCIPALINVESTING
• 7th for domestic high yield
• 62 investment grade debt offerings in 2002; raising over $31 billion. Ranked 7th in Q1 2003
• Leading provider of interest rate, currency and equity derivatives
FIXED INCOMEM&A
ADVISORYDEBT PRIVATEPLACEMENTS
EQUITY CAPITAL MARKETS
ASSET BACKED FINANCE
LOANSYNDICATIONS
WACHOVIACorporate & Investment Banking
Idea GenerationCapital Raising
TREASURY SERVICES
• 2nd largest cash management provider
• One of the nation’s largest lockbox networks (#2 retail and #3 wholesale)
• Ranked in the top two providers in eight of 11 product categories by Ernst & Young, top four providers in all 11
• 1st in trade receivable transactions
• 3rd largest bank owned leasing company in U.S.
• 4th in trade receivable commitments
• 9th largest leasing company in U.S.
• Total commitments in excess of $7 billion for 2003
Capital Finance
• 1st in 1997-1Q 2003 as lead manager for public equipment-backed issues
• 12th in volume of public and private issuances for 1Q 2003, $4.5B issued
• 1st in SBA 7(a), conventional, and middle market commercial loan issuance 2000-1Q 2003
• Rank in the top 3 in third party home equity securitization
• Direct investments of more than $2.5B in over 200 companies since 1988
• Fund commitments of more than $2B in over 200 funds
• 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
As of March 31, 2003
• 4th in traditional private placements transactions for 2002 (#issues)
• 11 traditional private placement transactions completed in 2002, raising over $1 billion in proceeds
• Providing senior debt, synthetic leases, credit tenant leases and investment and non-investment grade transactions
• 7th in leveraged lead arranged transactions and 5th in investment grade lead arranged transactions in Q1 2003
• 72 agent only transactions for $26.5 B (#5) in Q1 2003
• Ranked 7th in Institutional lead arranged transactions in Q1 2003
• Over 360 transactions completed since 1996
• Leading M&A advisor serving growing companies since 1975
• Sellside, buyside, strategic financial advisory, takeover defense and special committee presentation experience
Middle Market Companies
Corporate & Investment Banking Platform
University | Wachovia Securities Corporate & Investment Banking13
Integrated Corporate & Investment Banking Coverage Model
Corporate & Investment Banking Platform
Consumer & Retail
Consumer & Retail
HealthcareHealthcare
Defense & Aerospace
Defense & Aerospace Energy & PowerEnergy & Power Financial
Institutions
Financial Institutions
Industrial GrowthIndustrial Growth
Real EstateReal Estate
InternationalInternational IT & Business Services
IT & Business Services
Media & Communications
Media & Communications
Strategic Advisory Group
Strategic Advisory Group TechnologyTechnology
Public EquityPublic Equity Loan Syndications
Loan SyndicationsHigh Yield DebtHigh Yield DebtMergers &
Acquisitions
Mergers & Acquisitions
Congress Financial
Congress Financial
Cash Management
Cash Management
Wealth Management
Wealth Management
Asset Securitization
Asset Securitization
Investment Grade Debt
Investment Grade Debt
Private Placements
Private Placements
Convertible Securities
Convertible Securities
Asset Based Lending
Asset Based Lending
Derivative Securities
Derivative Securities
LeasingLeasingAsset Based
Conduit Finance
Asset Based Conduit Finance
University | Wachovia Securities Corporate & Investment Banking15
• 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).
Corporate & Investment Banking Product Expertise
Fixed Income
• 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 1997-2002 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:– $120 million of revenues/50
employees.– Offer 24 hour trading and marketing
with an extensive coverage in spot, forward, option, interest rate swaps and options, with customized solutions.
University | Wachovia Securities Corporate & Investment Banking16
Equity
• 327 experienced professionals focused exclusively on growing, dynamic companies driving industry change.
• Proven managed offering underwriter.– Revenue up 25%, Wall Street down 30% in
2002.– 15 year institutional relationships.– Wall Street leading retail stock retention.– Consistent after-market trading support.
• 32 senior research analysts covering over 350 companies (average analyst covers 10-12 companies).
• Franchise approach to coverage vs. “I.I.” model.
• 43 equity salespeople covering over 600 accounts in the U.S. and Europe.
• Recently completed Prudential combination creates the third largest retail brokerage firm in the U.S.
• Integrated managed offering, restricted block trading and corporate finance services team dedicated to designing optimal client solutions.
Corporate & Investment Banking Product Expertise
Strong Momentum in a Difficult Market
Experienced Leadership
($ in Millions)
2000 2001 2002Number of Offerings
Wachovia Offerings 32 61 54
Total Wall Street Offerings 806 542 485
Wachovia Market Share 4.0% 11.3% 11.1%
Dollar Volume
Wachovia Offerings $6,238.7 $16,461.6 $17,010.8
Total Wall Street Offerings $180,919.4 $116,502.6 $89,414.9
Wachovia Market Share 3.4% 14.1% 19.0%
Co-Head Research 12
Years ofName Head Titles Former Position Experience
Mickey Misera Equity Group Head of Trading at Alex. Brown 21Mike Cummings ECM Desk Head of Equity Origination at WFS 10Clinton Daly Institutional SalesHead of Inst. Sales at Alex. Brown 21Mike Murphy Coverage TradingEquity Trader at Alex. Brown 31Chris Bartlett OTC Trading Top OTC Trader at Alex. Brown 18Jim Whelen Listed Trading Listed Trader at Alex. Brown 16Billy Nolan Equity MarketingInst. Salesman at Alex. Brown 10Anthony Gallo Co-Head ResearchI.I. Analyst at Alex. Brown 10Todd Wickwire Inst. Salesman at Alex. Brown
University | Wachovia Securities Corporate & Investment Banking17
High Yield
Corporate & Investment Banking Product Expertise
High Yield League TableFull Credit to Each Manager - Domestic Deals
2002
Number of ProceedsRank Institution Issues (in millions)
1 JP Morgan 87 25,293$ 2 CSFB 82 19,583 3 Deutsche Bank 78 21,939 4 Banc of America 73 23,356 5 Salomon Smith Barney 65 21,824 6 Wachovia Securities 46 14,645 7 Lehman Brothers 38 10,010 8 UBS Warburg 36 10,117 9 Morgan Stanley 28 8,508 10 Goldman Sachs 25 8,406
Note: Ranks underwriters with book-managed deals; multi-tranche deals counted once.Source: Wachovia Securities
$22.2
$14.6
$12.1
$5.4
$0.0
$6.0
$12.0
$18.0
$24.0
2000#11
2001#8
2002#6
YTD '03 Ann.
Wac
hovia
Volu
me
($'s in
Billio
ns)
League Table
Growth In Market Share
• 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.
• 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%.
University | Wachovia Securities Corporate & Investment Banking18
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.
Corporate & Investment Banking Product Expertise
University | Wachovia Securities Corporate & Investment Banking19
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.
Corporate & Investment Banking Product Expertise
University | Wachovia Securities Corporate & Investment Banking20
• 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.
Corporate & Investment Banking Product Expertise
Capital Finance• 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 | Wachovia Securities Corporate & Investment Banking22
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.
Analyst Career Opportunities
University | Wachovia Securities Corporate & Investment Banking23
Capital Finance
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.
Group Overview
Analyst Responsibilities
University | Wachovia Securities Corporate & Investment Banking24
Credit Capital Markets
Analyst Career Opportunities
• 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
• 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.
Group Overview
Analyst Responsibilities
University | Wachovia Securities Corporate & Investment Banking25
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.
• 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.
Group Overview
Analyst Responsibilities
University | Wachovia Securities Corporate & Investment Banking26
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
• 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.
Group Overview
Analyst Responsibilities
University | Wachovia Securities Corporate & Investment Banking27
Investment Banking - Corporate Finance
Analyst Career Opportunities
• 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.
• 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.
Group Overview
Analyst Responsibilities
University | Wachovia Securities Corporate & Investment Banking28
Investment Banking - Origination & Execution
Analyst Career Opportunities
• 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.
• 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.
Group Overview
Analyst Responsibilities
University | Wachovia Securities Corporate & Investment Banking29
Investment Banking - M&A/Financial Sponsors
• 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 Career Opportunities
Group Overview
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.
University | Wachovia Securities Corporate & Investment Banking30
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.
Analyst Career Opportunities
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
University | Wachovia Securities Corporate & Investment Banking32
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.
Why Wachovia Securities?
University | Wachovia Securities Corporate & Investment Banking33
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).
University | Wachovia Securities Corporate & Investment Banking35
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
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CONTACT INFORMATIONSchool Captains:
Barbara Hall
Loan Syndications
Brian Grabenstein
Fixed Income, Structured Products
Ernie May
Credit Capital Markets, Agency Management
Recruiting Information
CAMPUS DATESCampus 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 HunterCIB Analyst Recruiter
University | Wachovia Securities Corporate & Investment Banking38
APPENDIX
Selected Closed Transactions
Follow-OnOffering
Initial Public
Offering
ConvertibleDebt
Asset Securitizati
on
EquityDerivatives
Initial Public
Offering
Loan Syndications
High Yield Capital Manageme
nt
Loan Syndication
s
Follow-OnOffering
Asset Securitizati
on
Initial Public
Offering
SeniorNotes
CurrencyDerivatives
University | Wachovia Securities Corporate & Investment Banking39
APPENDIX
Selected Closed Transactions
CapitalManageme
nt
LoanSyndication
s
LoanSyndication
s
LoanSyndication
s
ConvertibleNotes
InvestmentGrade Debt
ConvertibleSecurities
AssetSecuritizati
on
Loan Syndication
s
AssetSecuritizati
on
SeniorNotes
Initial Public
Offering
Loan Syndications
Investment Grade Debt
LoanSyndication
s
University | Wachovia Securities Corporate & Investment Banking40
APPENDIX
Selected Closed Transactions
Follow-OnOffering
Follow-OnOffering
Follow-OnOffering
Mergers & Acquisition
s
Loan Syndications
LoanSyndication
s
Mergers & Acquisitons
Loan Syndications
Loan Syndications
Fixed Income
Derivatives
SeniorNotes
SeniorNotes
SeniorNotes
Asset-Based
Lending
Loan Syndications
University | Wachovia Securities Corporate & Investment Banking41
APPENDIX
Selected Closed Transactions
AssetSecuritizati
on
Asset-Based
Lending
Investment Grade Debt
CashManageme
nt
Follow-On Equity
Offering
Fixed Income
Derivatives
International Cash
Management
LoanSyndication
s
LoanSyndication
s
ConvertibleSecurities
Initial Public
Offering
High Yield &Loan
Syndications
Initial Public
Offering
LoanSyndication
s
Loan Syndication
s
University | Wachovia Securities Corporate & Investment Banking42
APPENDIX
Selected Closed Transactions
Asset Backed Lending
Asset Based
Lending
Asset Backed Lending
Asset Backed Lending
Leasing Leasing Leasing
Congress Financial
Asset Backed Conduit Finance
Asset BackedConduit Finance
Congress Financial Congress Financial
Asset Backed Conduit Finance
Asset Backed Conduit Finance
Asset Backed Lending