PIPE issuance up for year, down for month; Morgan Stanley year’s top U.S. placement agent

Mackie, Paradigm rank first in Canada

By Stephanie N. Rotondo

Phoenix, July 31 – U.S. PIPE issuance continued to be above year-ago figures, though totals for the month fell behind, according to data compiled by Prospect News.

For the year thus far, issuers have raised $10.73 billion from 427 private equity transactions. By the same time in 2014, 411 deals had been done for proceeds of $8.96 billion.

Totals for the month came to $444 million via 55 private placements. In July 2014, $809 million had been taken in from 67 transactions.

Morgan Stanley & Co. LLC came in first as the year’s top placement agent, having facilitated two deals that generated about $1.31 billion. Axiom won the top spot for the month, raising $10 million for Success Holding Group International Inc. via a sale of 12% units of convertible senior notes.

In the registered direct space, dollars raised remained above those seen in the previous year, though the number of deals was about the same.

A total of $1.57 billion was raised from 58 direct placements, versus $1.26 billion taken in from 57 deals in the prior-year period.

Lazard held on to its position as the top agent for registered direct offerings. The firm generated $500 million of proceeds for Cheniere Energy Inc. via an offering of 4.25% convertible senior notes due 2045.

The Canadian PIPE market was following the U.S. trend – that is, issuance was up for the year but down for the month.

Total issuance for the year was C$3.23 billion from 318 equity sales, compared with C$2.95 billion raised from 388 deals last year.

In July, issuance came to C$247 million via 37 sales. For the same period in 2014, issuance was C$410 million from 59 transactions.

Mackie ranked as the top placement agent in the region, raising C$134 million from 11 deals. Paradigm Capital Inc. meantime took first for the month, generating proceeds of C$15 million from two offerings.

U.S. market, year to date

2014 Comparables

	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	1.307	2	12.18%	4	0.110	2	1.23%
2	Jefferies	0.400	2	3.73%
3	Credit Suisse	0.231	1	2.15%
4	Sandler O'Neill	0.120	1	1.12%	18	0.015	1	0.17%
5	Compass Point	0.090	1	0.84%
6	Leerink Partners	0.078	1	0.72%
7	UBS	0.065	1	0.61%
8	FIG Partners	0.059	3	0.55%	7	0.059	4	0.66%
9	MTS	0.051	2	0.48%
10	Heartland Bank	0.050	1	0.47%
10	Reedland	0.050	1	0.47%
	Total	10.730	427	8.956	411
	Average size:	0.025	0.022
U.S. direct placements, year to date
					2014 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Lazard	0.500	1	31.95%
2	Clarksons Platou	0.157	2	10.01%
3	DVB	0.090	1	5.75%
4	H.C. Wainwright	0.072	11	4.61%	4	0.095	10	7.56%
5	Seaport	0.067	1	4.26%
6	Pareto	0.067	1	4.26%
7	Barclays	0.050	1	3.20%
8	Maxim	0.036	5	2.31%	5	0.055	4	4.39%
9	Roth	0.031	6	2.01%	6	0.052	7	4.14%
10	Chardan	0.025	6	1.63%	7	0.038	2	3.01%
	Total	1.565	58	1.263	57
	Average size:	0.027	0.022
Canadian market, year to date
					2014 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Mackie	0.134	11	4.15%	16	0.017	4	0.56%
2	GMP	0.131	9	4.06%	2	0.153	6	5.20%
3	Macquarie	0.112	5	3.46%	5	0.063	6	2.13%
4	RBC	0.105	2	3.25%	19	0.014	1	0.48%
5	Dundee	0.065	7	2.01%	8	0.038	6	1.29%
6	Clarus	0.058	1	1.79%	13	0.025	5	0.84%
7	BMO	0.050	3	1.55%	7	0.049	3	1.66%
8	Beacon	0.050	5	1.55%	23	0.012	3	0.40%
9	Canaccord Genuity	0.049	5	1.53%	4	0.071	10	2.40%
10	Cormark	0.048	9	1.49%	3	0.140	9	4.76%
	Total	3.230	318	2.947	388
	Average size:	0.010	0.008
U.S. market, July
					2014 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Axiom	0.010	1	2.25%
2	Newbridge	0.006	1	1.35%
3	Empire State	0.005	2	1.19%
4	H.C. Wainwright	0.003	1	0.56%	3	0.032	4	3.99%
5	Ladenburg Thalmann 0.002	1	0.35%
6	Scarsdale	0.001	1	0.29%
7	Chardan	0.001	1	0.24%	13	0.001	1	0.12%
	Total	0.444	55	0.809	67
	Average size:	0.008	0.012
Canadian market, July
					2014 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Paradigm Capital Inc. 0.015	2	5.59%
2	Mackie	0.005	1	1.82%	10	0.002	1	0.49%
3	Beacon	0.005	1	1.82%	13	0.001	1	0.24%
4	Edgecrest	0.003	1	1.22%
5	Richardson GMP	0.002	1	0.73%
	Total	0.274	37	0.410	59
	Average size:	0.007	0.007
Prospect News PIPE Agent Rankings

Criteria

• The tables include all dollar-denominated offerings (or Canadian dollar-denominated offerings for the Canadian tables) sold as private placements, excluding Rule 144A deals, or direct placements.

• Stock must be listed on a U.S. exchange or trade on the Bulletin Board or Pink Sheets (U.S. issues).

• Offerings are included in the time period in which they price, if known, otherwise by settlement date or announcement date.

• Amounts are based on the total sales price (face amount or number of shares multiplied by the offering price).

• Each tranche is counted as a separate deal.

• Includes stock, securities convertible into stock, units of these securities and equity lines of credit.

• Minimum issue size $1 million (all tranches combined) or C$1 million.

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