Asia Markets - Halftime Report

ASIA MARKETS – HALFTIME REPORT
It’s a beautiful summer here in Hong Kong, with the monsoons (winds) blowing all of the nasty pollution away from city’s skies and upward into southern China. This weather pattern generally means that Hong Kong summer skies will often be a clear robin’s egg blue, even if the heat and humidity make outdoor activity, such as hiking, a rather steamy adventure. Fortunately, many of Hong Kong’s great hikes, such as the hike to Sai Wan beach in the New Territories, end at some body of water where you can cool off in a clean, clear sea under a blue sky.

But, are the skies in the economic universe as clear as those in the meteorological one? The answer is, as always, ‘It Depends’.

INVESTMENT GRADE DEBT
The main pockets of debt capital markets activity involve investment-grade debt offerings. These are not your high-yield (read: high-risk) offerings of 2007-2008 with 10%+ yields. In these uncertain times, investors are seeking to find the optimum point between yield and safety. They want to invest in debt securities which will offer more yield than, say, a treasury bond, but they want to minimize some degree of risk.

What this means for Asia debt capital markets is that many of the bond deals which are going through right now involve issuers with a heavy degree of state ownership, or some other factor which makes them a less risky investment. One lawyer at a top US firm here in Asia mentioned to me that bond issuers are scrambling to find any tie to, say, state ownership to increase the perceived safety of the investment in their securities. While the sovereign relationship tie with some issuers is as obvious as a ‘Luke, I Am Your Father’,with other issuers it’s more of an ‘I am your father’s brother’s nephew’s cousin’s former roommate’. Which should make the relationship to a sovereign entity absolutely nothing, yet into the prospectus it goes!

SOUTHEAST ASIA AND OTHER DEVELOPING ECONOMIES
Southeast Asia, heralded earlier in July as the ‘engine for economic growth in the world’ by British Foreign Office Minister Jeremy Browne, is a bright spot in a world of economic uncertainty. Hillary Clinton’s trip to Asia earlier in the month was just as focused on economic issues as it was on security concerns, if not more so, as she promoted US investment in Southeast Asia. And it is Malaysia – not Hong Kong or Singapore – who is in position to take the crown of Asia’s top IPO market in 2012. Robust domestic demand, coupled with a steady stream of investment, is helping to keep the regional 2012 GDP growth forecast of ASEAN economies at a modest, but resilient 5%.

A+ PE / M&A Opportunity in Hong Kong at Top 10 US Firm – 2nd to 4th Year US Associate (Mandarin Fluency and Top Firm M&A Experience Required)

We are working on a number of openings at present in HK / China, Tokyo and Singapore, but one in particular is impressive and urgent enough that we thought we should mention here (something that we rarely do in this column). The position is a Private Equity / M&A focused spot at a top US firm in HK. The ideal candidate will be coming from a top 15 US firm in NYC, other major US markets, or already in HK / China. This top 10 US firm is very selective regarding current firm and JD academics. Mandarin fluency is needed for this role. This is by any measure a top 5 Private Equity practice in Asia and the firm globally is considered on of the best PE practices among all major international law firms. The firm also has offices in mainland China. We have placed a number of lateral US associates at this firm in HK / China over the years and these associates (one of them now a partner) have had very positive experiences there. Further, we have been close for years with a number of partners at this firm in Asia and they are amongst our most favorite hiring partner clients, due mainly to our own high opinions of them and their reputation in the market, including feedback from our many associates placed on their teams over the years.

Should Legal Professionals Use Social Media?

With the social media boom that's been flooding the internet over the past few years, it's easy to find someone who is not only heavily involved with a social media network, but who also uses their account for professional means. Our attorney headhunters at Kinney Recruiting have some tips on how lawyers can use social media to their advantages.

Eversheds has announced the launch of its Beijing office, opening on 20 May 2013, with the appointment of two new partners: corporate energy law expert Ingrid Zhu-Clark and corporate lawyer Jay Ze.

Jung Yeon Son has joined Sheppard, Mullin, Richter & Hampton LLP as a partner in the firm's Corporate practice group, based in the firm's Palo Alto office. Son joins from Technology Crossover Ventures in Palo Alto, where she served as Associate General Counsel. Before that she was VP & Associate General Counsel at Blum Capital Partners in San Francisco, as well as practicing numerous years at Simpson Thacher in New York and Palo Alto.

On Monday, May 13, Tallgrass Energy LP announced the pricing of its initial public offering of 13,050,000 common units representing limited partner interests at the public offering price of $21.50 per common unit.

Paul Hastings, a leading global law firm, announced today that the firm represented Cequel Communications Holdings I, LLC, which does business as Suddenlink Communications, in connection with a $750 million private offering of senior notes. Cequel is the seventh largest cable operator in the United States.

Sullivan & Worcester LLP is pleased to announce that Elias B. Hinckley has joined the Environment, Energy & Natural Resources Group as a partner in the Washington, D.C. office.

Latham & Watkins has played a leading role for Thomas Cook Group PLC on the company’s £1.6 billion refinancing, a transaction that CEO Harriet Green has called a “milestone” in the turnaround of the 172-year-old tour operator’s history. Latham advised as lead counsel on both the €525 million underwritten bridge loan and high yield bond placement of the same size, and collaborated with Slaughter and May on the accompanying £425 million equity rights issue and £691 million bank re-financing.

Bracewell & Giuliani LLP represented Chesapeake Energy Corporation in the sale of certain midstream assets in the Anadarko Basin for $245 million to MarkWest Energy Partners. Bracewell is also representing Chesapeake Energy Corporation in the $300 million sale of Mid-America Midstream Gas Services, LLC to SemGroup Corporation.

The Portland office of global law firm K&L Gates LLP welcomes William H. Holmes and Teresa A. Hill as partners in the energy and infrastructure projects and transactions practice. Both arrive from Stoel Rives LLP.