A story in the July 1 edition of the Prospect News Convertibles Daily incorrectly identified the bookrunners for the PPL Corp. and Microsoft Corp. convertible note issues. A corrected version of the story follows:
By Rebecca Melvin
New York, July 1 - Issuance in the convertible primary market finished June 2010 and the year to date trailing slightly 2009's tallies, but for the 2010 second quarter, which concluded Wednesday, the sum was significantly off from last year's pace.
For the year to date, the convertible primary market has seen $17.96 billion in new issuance in 47 deals, which was down 5%, compared to $18.87 billion in 61 deals in the 2009 first half.
For June, the convertible primary market saw $3.55 billion of new issuance in six deals, which was down 13% from June 2009's total of $4.02 billion in 18 deals.
For the just-concluded second quarter, there was $9.93 billion in new convertible issuance in 21 deals, which was down 55% compared to $15.34 billion of new issuance in 49 deals for the 2009 second quarter, which was marked by a turnaround in the broader markets following the market crash in 2008.
J.P. Morgan Securities Inc. was the number one convertibles underwriter for the year to date, the second quarter and for June.
The New York-based investment bank brought $742 million in convertible bonds in four deals in June, accounting for 21% of overall issuance. UBS was the second placed underwriter of convertible issuance in June with $619 million in three deals, accounting for 17.5%.
Bank of America, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse and Morgan Stanley & Co. Inc. rounded out the next top eight positions for June.
For the year to date, JPMorgan has brought $3.6 billion in 21 deals for the U.S. market and $5.19 billion in 29 deals in the global market.
For the second quarter, Jefferies took fourth place, behind JPMorgan, Bank of America and Morgan Stanley, with $1.28 billion in new issuance in three deals, accounting for 13% of total issuance for the April, May and June time period.
Among notable June deals was Microsoft Corp.'s $1.15 billion of 0% three-year convertibles, which priced June 9 and were brought by Citigroup, Bank of America Merrill Lynch, Barclays Capital and UBS; and PPL Corp.'s $1 billion of 9% mandatory convertibles, which priced June 22 and were brought by Bank of America, Credit Suisse, Barclays Capital, JPMorgan and UBS.
There was also Cadence Design Systems Inc.'s $300 million of five year convertibles to yield 2.625%, which was brought by JPMorgan and Morgan Stanley in early June; and Xilinx Inc.'s $520 million of seven-year convertibles, also yielding 2.625%, which was brought by JPMorgan and Deutsche Bank.
Year to date, U.S. market
2009 Comparables
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | JPMorgan | 3.597 | 21 | 20.03% | 1 | 4.202 | 30 | 22.27%
|
| 2 | Bank of America | 2.632 | 15 | 14.66% | 10 | 0.417 | 4 | 2.21%
|
| 3 | Morgan Stanley | 1.860 | 7 | 10.36% | 2 | 2.373 | 14 | 12.58%
|
| 4 | Deutsche Bank | 1.493 | 9 | 8.32% | 7 | 1.290 | 8 | 6.84%
|
| 5 | Jefferies | 1.275 | 3 | 7.10% | 14 | 0.115 | 1 | 0.61%
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| 6 | Goldman Sachs | 1.165 | 6 | 6.49% | 5 | 2.121 | 14 | 11.24%
|
| 7 | Barclays | 1.151 | 7 | 6.41% | 8 | 1.195 | 8 | 6.34%
|
| 8 | Credit Suisse | 1.124 | 8 | 6.26% | 6 | 1.364 | 11 | 7.23%
|
| 9 | Citigroup | 0.981 | 9 | 5.46% | 3 | 2.269 | 16 | 12.03%
|
| 10 | UBS | 0.943 | 7 | 5.25% | 15 | 0.058 | 1 | 0.30%
|
| Total | 17.957 | 47 | 18.866 | 61 |
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| Average size: | 0.382 | 0.309 |
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| Second quarter, U.S. market
|
| | | | | 2009 Comparables
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| Underwriter | Amount | No. | Share | Rank | Amount No. | Share
|
| 1 | JPMorgan | 1.512 | 7 | 15.23% | 1 | 3.405 | 25 | 22.19%
|
| 2 | Bank of America | 1.368 | 7 | 13.78% | 10 | 0.417 | 4 | 2.72%
|
| 3 | Morgan Stanley | 1.325 | 2 | 13.35% | 2 | 1.921 | 12 | 12.52%
|
| 4 | Jefferies | 1.275 | 3 | 12.84% | 14 | 0.115 | 1 | 0.75%
|
| 5 | Deutsche Bank | 0.962 | 4 | 9.69% | 8 | 0.913 | 6 | 5.95%
|
| 6 | Barclays | 0.930 | 4 | 9.37% | 6 | 1.095 | 7 | 7.14%
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| 7 | Citigroup | 0.661 | 4 | 6.66% | 5 | 1.635 | 12 | 10.65%
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| 8 | UBS | 0.619 | 3 | 6.24% | 15 | 0.058 | 1 | 0.37%
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| 9 | Goldman Sachs | 0.580 | 3 | 5.84% | 3 | 1.911 | 12 | 12.45%
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| 10 | Credit Suisse | 0.398 | 3 | 4.01% | 7 | 0.961 | 9 | 6.27%
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| Total | 9.927 | 21 | 15.344 | 49
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| Average size: | 0.473 | 0.313
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| June, U.S. market
|
| | | | | 2009 Comparables
|
| Underwriter | Amount | No. | Share | Rank | Amount No. | Share
|
| 1 | JPMorgan | 0.742 | 4 | 20.90% | 1 | 1.222 | 9 | 30.42%
|
| 2 | UBS | 0.619 | 3 | 17.45%
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| 3 | Bank of America | 0.605 | 3 | 17.05% | 10 | 0.058 | 1 | 1.43%
|
| 4 | Barclays | 0.542 | 2 | 15.29% | 7 | 0.172 | 1 | 4.30%
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| 5 | Citigroup | 0.312 | 1 | 8.81% | 9 | 0.125 | 1 | 3.10%
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| 6 | Deutsche Bank | 0.260 | 1 | 7.33% | 11 | 0.038 | 1 | 0.95%
|
| 7 | Credit Suisse | 0.230 | 1 | 6.48% | 5 | 0.206 | 3 | 5.13%
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| 8 | Morgan Stanley | 0.175 | 1 | 4.93% | 3 | 0.700 | 5 | 17.42%
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| 9 | Goldman Sachs | 0.062 | 1 | 1.76% | 4 | 0.263 | 3 | 6.55%
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| Total | 3.548 | 6 | 4.016 | 18
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| Average size: | 0.591 | 0.223
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| Year to date, global
|
| | | | | 2009 Comparables
|
| Underwriter | Amount | No. | Share | Rank | Amount No. | Share
|
| 1 | JPMorgan | 5.194 | 29 | 16.58% | 1 | 5.975 | 36 | 17.48%
|
| 2 | Morgan Stanley | 3.943 | 13 | 12.58% | 2 | 4.335 | 23 | 12.68%
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| 3 | Bank of America | 3.286 | 17 | 10.49% | 16 | 0.417 | 4 | 1.22%
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| 4 | Credit Suisse | 2.241 | 17 | 7.15% | 6 | 2.133 | 15 | 6.24%
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| 5 | Deutsche Bank | 1.760 | 12 | 5.62% | 9 | 1.680 | 11 | 4.91%
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| 6 | UBS | 1.553 | 13 | 4.96% | 14 | 0.449 | 4 | 1.31%
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| 7 | Citigroup | 1.538 | 13 | 4.91% | 4 | 3.068 | 21 | 8.98%
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| 8 | Goldman Sachs | 1.380 | 8 | 4.40% | 3 | 3.273 | 17 | 9.57%
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| 9 | Jefferies | 1.275 | 3 | 4.07% | 21 | 0.115 | 1 | 0.34%
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| 10 | Barclays | 1.236 | 8 | 3.95% | 11 | 1.537 | 12 | 4.50%
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| Total | 31.334 | 113 | 34.187 | 95
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| Average size: | 0.277 | 0.360
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| Prospect News Convertibles Underwriter Rankings
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Criteria
• The tables include all underwritten dollar-denominated offerings sold in the United States as public or Rule 144A deals reported to Prospect News (for U.S. deals), or all underwritten offerings (global deals).
• Offerings are included in the time period in which they price.
• Amounts are based on the total sales price (face amount multiplied by the offering price). The full amount is credited to the bookrunner (or lead manager if no bookrunners). For multiple bookrunners (or lead managers), the total value is divided equally among all the firms.
• Each tranche is counted as a separate deal.
• Bonds are included that convert into the issuer's or another company's stock or the cash equivalent; bonds that convert into other bonds are excluded.
• Structured products issued by an investment bank and exchangeables for or linked to another company's stock are excluded.
• Units made up of a bond and stock are included; units made up of a bond and warrants are excluded.
• Preferred issues are included using the same criteria as for bonds.
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