* JP Morgan top convertibles underwriter year to date
* Convertibles issuance $40.10 billion year to date
* Morgan Stanley top convertibles underwriter in May
* Convertibles issuance $14.55 billion in May
New York, May 30 - Convertibles issuance soared to its highest level in two years during May and recorded the busiest ever month by number of deals, although the volume was far short of the previous record, according to data compiled by Prospect News.
During the month $14.55 billion of convertibles came to market. That is the biggest dollar amount since May 2001 when there was $21.16 billion of new deals.
The number of deals, at 59, is significantly higher than the previous record, also May 2001, when there were 48.
The figures are for dollar-denominated transactions offered in the U.S. as registered or Rule 144A offerings. Included in the totals are offerings issued by investment banks but exchangeable into or linked to another company's stock. Without these deals, May 2003's total is $14.14 billion in 48 deals, still the biggest dollar amount since May 2001 when there was $21.13 billion, and still the busiest month ever, beating May 2001's 44 deals.
Year to date convertibles issuance now totals $40.10 billion in 137 deals.
Although the pace still lags behind 2002 it is now close to catching up. At the end of May 2002 issuance totaled $34.39 billion in 125 deals.
This year is also on track to beat 2002's full year total of $60.40 billion although there is still a way to go to match the record volume of $114.80 billion set in 2001.
Among underwriters, the Prospect News data shows JP Morgan remaining in the number one position year to date with $6.26 billion brought to market in 20 deals.
However Morgan Stanley was the top underwriter in May with $3.06 billion in 15 deals.
Thanks to the strong performance in the most recent month, Morgan Stanley moves up to the number two position year to date, up from fifth last month.
Merrill Lynch & Co., previously the perennial number one convertible underwriter, is now in third place so far this year.
Morgan Stanley's number one position for the month was largely achieved by bringing significantly more deals to market than anyone else although its position as joint bookrunner with JP Morgan and Merrill Lynch on SLM Corp.'s $2 billion convertible also helped.
Year to date
2002 Comparables
| Underwriter | Amount | No. | Rank | Amount | No.
|
| 1. | JP Morgan | 6,264.79 | 20 | 6 | 2,582.50 | 8
|
| 2. | Morgan Stanley | 5,798.33 | 28 | 4 | 3,526.39 | 10
|
| 3. | Merrill Lynch | 5,403.87 | 26 | 1 | 12,313.36 | 33
|
| 4. | Citigroup | 5,076.23 | 23 | 2 | 8,852.40 | 27
|
| 5. | Goldman Sachs | 4,370.78 | 27 | 3 | 7,080.23 | 15
|
| 6. | Banc of America | 3,264.38 | 15 | 7 | 1,848.34 | 7
|
| 7. | CSFB | 2,551.67 | 11 | 5 | 2,747.59 | 12
|
| 8. | Deutsche Bank | 2,384.30 | 11 | 8 | 1,395.00 | 6
|
| 9. | UBS Warburg | 2,152.66 | 12 | 9 | 1,101.75 | 8
|
| 10. | Lehman | 1,647.82 | 11 | 10 | 1,089.19 | 5
|
|
|
| Total | $40,102.49 | 137 | $43,392.50 | 125
|
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| Average size | $292.72 | $347.14
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| May 2003
|
| | | | | 2002 Comparables
|
| Underwriter | Amount | No. | Rank | Amount | No.
|
| 1. | Morgan Stanley | 3,062.96 | 15 | 10 | 39.00 | 1
|
| 2. | JP Morgan | 2,507.50 | 10 | 8 | 150.00 | 1
|
| 3. | Merrill Lynch | 1,606.12 | 8 | 1 | 1,240.87 | 7
|
| 4. | Citigroup | 1,389.81 | 8 | 5 | 257.25 | 2
|
| 5. | Goldman Sachs | 1,229.11 | 8 | 3 | 563.59 | 2
|
| 6. | Lehman | 973.07 | 6 | - | - | -
|
| 7. | CSFB | 735.00 | 5 | 6 | 201.25 | 1
|
| 8. | UBS Warburg | 728.50 | 5 | 4 | 393.75 | 2
|
| 9. | Banc of America | 716.67 | 5 | 7 | 172.50 | 1
|
| 10. | Deutsche Bank | 581.67 | 5 | 2 | 700.00 | 2
|
|
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| Total | $14,554.57 | 59 | $3,823.21 | 22
|
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| Average size | $246.69 | $173.78
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| Prospect News Convertibles Underwriter Rankings
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Criteria
* The tables include all dollar-denominated offerings sold in the U.S. as public or Rule 144A deals reported to Prospect News.
* 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.
* 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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