Analysis of convertibles issuance for year to date and 12 months through August

Total year-to-date issuance: $48.488 billion in 523 deals

Amount ($ billions) Number

Regular convertibles 40.387 84

Investment bank synthetics 8.102 439

Total 48.488 523

Note: Investment bank deals are offerings issued by an investment bank and linked to or exchangeable for the stock of another company.

All data below excludes these investment bank deals (but includes investment bank offerings convertible into their own stock).

Columns are amount in billions of dollars, count of deals, percentage of total in dollars.

Coupon

	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006
0%	0	0.046	0.068	0	0	0.974	0	0	0	0	0	0
0.01%-0.99%	0	0	0	0	0.575	5.000	0	1.600	2.750	1.100	0	0
1%-1.99%	0.160	0	0.250	0.095	0.968	0	0.400	5.150	1.425	2.150	0	0
2%-2.99%	0.250	0.225	0.690	2.746	0.345	0	0.926	0	1.505	0.845	0.300	0.240
3%-3.99%	0.715	0.398	1.415	0.998	0.600	0	0.880	0.144	0.280	2.334	0.710	1.022
4%-4.99%	0.300	0	0.361	0.350	0	0	0.550	0.058	0.345	1.575	1.443	0.632
5%-5.99%	0.146	0.525	0.950	0.615	0.500	0	0.291	0	0.144	0.300	0	0.075
6% and higher	0.219	0.318	0.773	1.245	0	0.365	0.238	0.148	0.089	0.575	0	0.125
Floater	0	0	2.000	2.000	0	0	0	0	0	0.713	0	0
Total	1.790	1.511	6.508	8.048	2.987	6.339	3.285	7.099	6.538	9.590	2.453	2.094
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
0%	0.114	2	0.974	1	0	0	0	0	0.974	1	1.088	3	2.41%
0.01%-0.99%	0	0	5.575	3	5.450	5	0	0	11.025	8	11.025	8	27.30%
1%-1.99%	0.345	2	1.367	3	8.725	8	0	0	10.092	11	10.598	14	24.99%
2%-2.99%	3.661	7	1.271	5	2.349	9	0.540	2	4.161	16	8.072	25	10.30%
3%-3.99%	2.810	5	1.480	5	2.757	9	1.732	5	5.969	19	9.494	28	14.78%
4%-4.99%	0.711	4	0.550	2	1.978	5	2.076	5	4.603	12	5.615	17	11.40%
5%-5.99%	2.090	8	0.791	2	0.443	2	0.075	1	1.309	5	3.545	15	3.24%
6% and higher	2.336	7	0.603	4	0.812	5	0.125	1	1.540	10	4.095	19	3.81%
Floater	4.000	2	0	0	0.713	2	0	0	0.713	2	4.713	4	1.77%
Total	16.067	37	12.612	25	23.227	45	4.548	14	40.387	84	58.244	133	100.00%
Premium
	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006
19.99% and lower	0.135	0.307	0	1.600	0.575	5.000	0	6.091	0.395	2.544	0.149	0.302
20%-29.99%	0.529	0.461	3.910	5.229	2.188	0	2.044	0.865	1.024	4.959	2.004	1.552
30-39.99%	1.126	0.698	2.530	1.218	0.225	0.974	0.700	0.144	4.619	1.522	0	0.240
40-49.99%	0	0	0	0	0	0.165	0.291	0	0	0.565	0.300	0
50% and higher	0	0	0	0	0	0.200	0.250	0	0.500	0	0	0
NA	0	0.046	0.068	0	0	0	0	0	0	0	0	0
Total	1.790	1.511	6.508	8.048	2.987	6.339	3.285	7.099	6.538	9.590	2.453	2.094
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
19.99% and lower	1.907	3	5.575	3	9.030	15	0.452	3	15.057	21	17.099	26	37.28%
20%-29.99%	9.600	24	4.232	13	6.848	15	3.556	9	14.635	37	24.764	65	36.24%
30-39.99%	4.446	8	1.899	5	6.285	13	0.240	1	8.424	19	13.996	33	20.86%
40-49.99%	0	0	0.456	2	0.565	1	0.300	1	1.321	4	1.321	4	3.27%
50% and higher	0	0	0.450	2	0.500	1	0	0	0.950	3	0.950	3	2.36%
NA	0.114	2	0	0	0	0	0	0	0	0	0.114	2	0.00%
Total	16.067	37	12.612	25	23.227	45	4.548	14	40.387	84	58.244	133	100.00%
Quick Sale?
	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006
Yes	1.646	1.147	5.816	3.885	2.143	6.339	2.893	6.865	6.424	9.217	2.453	1.969
No	0.144	0.364	0.692	4.163	0.845	0	0.392	0.234	0.114	0.374	0	0.125
Total	1.790	1.511	6.508	8.048	2.987	6.339	3.285	7.099	6.538	9.590	2.453	2.094
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	10.848	25	11.375	21	22.505	39	4.423	13	38.303	73	50.797	109	94.84%
No	5.219	12	1.237	4	0.722	6	0.125	1	2.084	11	7.446	24	5.16%
Total	16.067	37	12.612	25	23.227	45	4.548	14	40.387	84	58.244	133	100.00%
Upsized?
	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006
Yes	0.275	0	1.265	2.226	0.600	0	0.846	1.600	0.350	1.910	0	0.642
No	1.515	1.275	5.243	5.822	2.388	6.339	2.148	5.499	6.188	7.473	2.453	1.452
Downsized	0	0.236	0	0	0	0	0.291	0	0	0.207	0	0
Total	1.790	1.511	6.508	8.048	2.987	6.339	3.285	7.099	6.538	9.590	2.453	2.094
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	3.491	6	1.446	5	3.860	7	0.642	1	5.948	13	9.714	21	14.73%
No	12.340	30	10.874	19	19.160	37	3.906	13	33.941	69	47.795	109	84.04%
Downsized	0.236	1	0.291	1	0.207	1	0	0	0.498	2	0.734	3	1.23%
Total	16.067	37	12.612	25	23.227	45	4.548	14	40.387	84	58.244	133	100.00%
Seniority
	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006
senior	0.990	0.750	4.398	5.345	1.887	6.139	2.134	6.841	5.699	7.392	1.869	2.094
senior subordinated	0.125	0	0.761	0.331	0.375	0	0.441	0	0.360	0.874	0.300	0
subordinated	0.375	0	0.450	1.850	0.225	0.200	0.200	0.144	0.465	0.450	0.135	0
preferred	0.300	0.761	0.898	0.522	0.500	0	0.511	0.115	0.014	0.875	0.149	0
Total	1.790	1.511	6.508	8.048	2.987	6.339	3.285	7.099	6.538	9.590	2.453	2.094
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
senior	10.493	19	10.160	15	19.931	32	3.963	11	34.055	58	45.538	85	84.32%
senior subordinated	1.092	7	0.816	4	1.234	5	0.300	1	2.349	10	3.567	18	5.82%
subordinated	2.300	3	0.625	3	1.059	4	0.135	1	1.819	8	4.494	13	4.50%
preferred	2.182	8	1.011	3	1.003	4	0.149	1	2.164	8	4.646	17	5.36%
Total	16.067	37	12.612	25	23.227	45	4.548	14	40.387	84	58.244	133	100.00%
Contingent Conversion
	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006
Yes	0.435	0.623	2.480	1.241	1.095	5.365	1.530	6.651	5.125	7.196	1.578	1.654
No	1.355	0.889	4.028	6.807	1.893	0.974	1.755	0.448	1.413	2.395	0.875	0.440
Total	1.790	1.511	6.508	8.048	2.987	6.339	3.285	7.099	6.538	9.590	2.453	2.094
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	4.343	13	7.990	14	18.972	25	3.232	9	30.194	48	34.973	64	74.76%
No	11.724	24	4.622	11	4.255	20	1.315	5	10.193	36	23.271	69	25.24%
Total	16.067	37	12.612	25	23.227	45	4.548	14	40.387	84	58.244	133	100.00%
Mandatory
	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006
Yes	0	0.282	0.692	1.245	0.500	0	0	0	0	0.875	0	0
No	1.790	1.230	5.816	6.803	2.487	6.339	3.285	7.099	6.538	8.716	2.453	2.094
Total	1.790	1.511	6.508	8.048	2.987	6.339	3.285	7.099	6.538	9.590	2.453	2.094
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	2.218	7	0.500	1	0.875	2	0	0	1.375	3	3.593	10	3.40%
No	13.849	30	12.112	24	22.353	43	4.548	14	39.012	81	54.651	123	96.60%
Total	16.067	37	12.612	25	23.227	45	4.548	14	40.387	84	58.244	133	100.00%
Greenshoe Exercised?
	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006
Yes	1.205	0.398	3.540	4.298	2.263	1.339	2.576	6.766	4.523	7.428	1.427	1.349
No	0.585	1.114	2.968	3.750	0.725	5.000	0.709	0.333	2.015	2.163	1.026	0.745
Total	1.790	1.511	6.508	8.048	2.987	6.339	3.285	7.099	6.538	9.590	2.453	2.094
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	8.235	21	6.178	18	18.717	34	2.777	8	27.671	60	37.111	89	68.51%
No	7.832	16	6.434	7	4.511	11	1.771	6	12.716	24	21.133	44	31.49%
Total	16.067	37	12.612	25	23.227	45	4.548	14	40.387	84	58.244	133	100.00%
Versus Talk
	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006
Richer	0	0	0	0.210	0	0	0	0	0	0	0	0
Rich end	0.701	0.525	0.173	0.958	0.500	0.165	0.472	0	0.350	0	0	0
Within	0.579	0.461	3.010	3.558	2.112	5.000	1.085	2.615	2.860	5.691	1.161	1.002
Cheap end	0.250	0.225	1.991	0.973	0.375	0.200	1.260	2.950	2.894	1.800	0.725	0.200
Cheaper	0.125	0	1.265	0	0	0	0.200	1.444	0.345	2.100	0.568	0.892
NA	0.135	0.300	0.068	2.350	0	0.974	0.268	0.091	0.089	0	0	0
Total	1.790	1.511	6.508	8.048	2.987	6.339	3.285	7.099	6.538	9.590	2.453	2.094
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Richer	0.210	1	0	0	0	0	0	0	0	0	0.210	1	0.00%
Rich end	1.656	5	1.137	4	0.350	1	0	0	1.488	5	3.845	13	3.68%
Within	7.029	13	8.197	11	11.166	27	2.163	7	21.526	45	29.134	62	53.30%
Cheap end	3.189	9	1.835	6	7.643	6	0.924	4	10.403	16	13.842	27	25.76%
Cheaper	1.265	2	0.200	1	3.889	7	1.460	3	5.548	11	6.938	14	13.74%
NA	2.718	7	1.242	3	0.179	4	0	0	1.421	7	4.275	16	3.52%
Total	16.067	37	12.612	25	23.227	45	4.548	14	40.387	84	58.244	133	100.00%
Use of Proceeds
	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006
Acquisition	0	0	3.715	0.100	0.845	0	0.200	0.058	0	1.514	0	0
Capex	0	0	0	0.204	0	0	0	0	0	0	0	0
GCP	0.561	1.211	0.723	3.031	0.375	0.165	1.143	0.448	4.688	2.600	0.435	0.700
No proceeds	0	0	0	0	0	0	0	0	0	0	0.726	0
Redeem convertibles	0	0.172	0.201	0	0	1.174	0.850	0.144	0.275	0.317	0	0
Refinance	0.404	0	1.500	2.502	1.768	0	0.912	0	0.260	1.410	0.568	1.144
Multiple/Other/NA	0.825	0.128	0.368	2.210	0	5.000	0.180	6.450	1.315	3.750	0.725	0.250
Total	1.790	1.511	6.508	8.048	2.987	6.339	3.285	7.099	6.538	9.590	2.453	2.094
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Acquisition	3.815	5	1.045	3	1.571	4	0	0	2.616	7	6.431	12	6.48%
Capex	0.204	2	0	0	0	0	0	0	0	0	0.204	2	0.00%
GCP	4.966	13	1.683	7	7.735	15	1.135	4	10.554	26	16.081	44	26.13%
No proceeds	0	0	0	0	0	0	0.726	1	0.726	1	0.726	1	1.80%
Redeem convertibles	0.374	2	2.024	5	0.736	4	0	0	2.760	9	3.134	11	6.83%
Refinance	4.002	8	2.679	7	1.670	7	1.712	6	6.061	20	10.467	31	15.01%
Multiple/Other/NA	2.706	7	5.180	3	11.515	15	0.975	3	17.669	21	21.200	32	43.75%
Total	16.067	37	12.612	25	23.227	45	4.548	14	40.387	84	58.244	133	100.00%
Industry Sector (by SIC code)
	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006
Oil and gas (13xx)	0.386	0	1.265	0.113	0	0	0	0	2.750	0.575	0	0
Construction (15xx)	0	0	0	0	0	0	0	0.144	0	0	0	0
Manufacturing (2xxx, 3xxx)	0.125	0.398	0.526	2.726	0.720	0.974	0.948	4.758	2.400	2.281	0.300	0.075
Pharmaceuticals (2834-6)	0.315	0.082	0	0.115	1.393	5.000	0.573	2.083	0.625	1.500	0.135	0
Transportation (4xxx)	0.144	0	0	0.302	0	0	0	0	0	0	0.726	0
Communications (48xx)	0.160	0	1.265	0	0	0	0.374	0	0.324	0.335	0	0
Electric, gas, sanitary services (49xx)	0	0	0	0.500	0.500	0	0.200	0	0	0	0	0
Wholesale (5xxx)	0.150	0	0.310	1.097	0.375	0.165	0.220	0	0	0.287	0	0.125
Finance, insurance, real estate (6xxx)	0.335	0.507	2.992	3.195	0	0	0.741	0.115	0.014	1.800	1.292	1.654
Services (7xxx)	0.175	0.525	0.150	0	0	0.200	0.230	0	0.175	2.812	0	0.240
Health services (8xxx)	0	0	0	0	0	0	0	0	0.250	0	0	0
Total	1.790	1.511	6.508	8.048	2.987	6.339	3.285	7.099	6.538	9.590	2.453	2.094
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Oil and gas (13xx)	1.377	3	0	0	3.325	2	0	0	3.325	2	5.089	7	8.23%
Construction (15xx)	0	0	0	0	0.144	1	0	0	0.144	1	0.144	1	0.36%
Manufacturing (2xxx, 3xxx)	3.650	10	2.642	9	9.438	18	0.375	2	12.455	29	16.230	40	30.84%
Pharmaceuticals (2834-6)	0.197	2	6.965	6	4.208	9	0.135	1	11.308	16	11.820	19	28.00%
Transportation (4xxx)	0.302	2	0	0	0	0	0.726	1	0.726	1	1.172	4	1.80%
Communications (48xx)	1.265	1	0.374	1	0.659	3	0	0	1.032	4	2.458	6	2.56%
Electric, gas, sanitary services (49xx)	0.500	1	0.700	2	0	0	0	0	0.700	2	1.200	3	1.73%
Wholesale (5xxx)	1.407	4	0.760	3	0.287	1	0.125	1	1.173	5	2.730	10	2.90%
Finance, insurance, real estate (6xxx)	6.693	12	0.741	2	1.928	4	2.947	8	5.616	14	12.644	29	13.91%
Services (7xxx)	0.675	2	0.430	2	2.987	6	0.240	1	3.658	9	4.508	13	9.06%
Health services (8xxx)	0	0	0	0	0.250	1	0	0	0.250	1	0.250	1	0.62%
Total	16.067	37	12.612	25	23.227	45	4.548	14	40.387	84	58.244	133	100.00%

Criteria

• The tables include all underwritten 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.

• 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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