* Convertibles issuance $69.82 billion year to date
* UBS top convertibles underwriter in July
* Convertibles issuance $9.35 billion in July
New York, July 31 - Convertibles issuance dropped back sharply in July from the previous month's frenetic pace but still managed a solid performance, the third highest volume in more than a year, according to data compiled by Prospect News.
Meanwhile, Citigroup held on to its position as the number one underwriter of convertibles so far this year.
For July through the market close Thursday, $9.35 billion of convertibles priced in 49 deals.
That was just under half (48%) of the $19.42 billion brought to market in June but was still the third highest in the past year, behind June 2003 and May 2003.
It also brought total issuance so far this year to $69.82 billion, more than the $60.40 billion in all of 2002 and the $64.29 billion in all of 2000. At this pace, 2003 is matching the record-setting volume seen in 2001 when $114.80 billion of convertibles came to market. By the time greenshoes are exercised, the volume through the end of July 2003 is likely to pass the $70.73 billion volume through the end of July 2001.
The figures cover dollar-denominated deals offered in the U.S. as registered transactions or under Rule 144A. They include offerings by investment banks that are convertible into or linked to another company's stock. Excluding these investment bank synthetics, July volume was $9.15 billion and year-to-date volume is $66.85 billion. June issuance was $18.93 billion on this basis.
As was the case at the end of June, Citigroup is the leading underwriter of convertibles for the year so far, having handled $9.66 billion. In second place, also unchanged from the end of June, is Morgan Stanley with $8.22 billion. Merrill Lynch & Co. moved up a place to third while JP Morgan dropped one to fourth.
For the month of July, UBS Investment Bank was the leading convertible underwriter with $1.43 billion. Lehman was second with $1.08 billion.
Helping both UBS and Lehman was their role as joint bookrunners on STMicroelectronics' $1.2 billion deal, the month's largest.
Year to date
2002 Comparables
| Underwriter | Amount | No. | Rank | Amount | No.
|
| 1. | Citigroup | 11,026.92 | 48 | 2 | 10,087.33 | 35
|
| 2. | Morgan Stanley | 9,407.69 | 44 | 5 | 3,526.39 | 10
|
| 3. | Merrill Lynch | 8,711.18 | 44 | 1 | 12,937.73 | 36
|
| 4. | JP Morgan | 8,677.96 | 33 | 4 | 4,005.47 | 15
|
| 5. | Goldman Sachs | 8,071.59 | 52 | 3 | 7,761.69 | 25
|
| 6. | Banc of America | 5,059.06 | 26 | 7 | 2,081.67 | 9
|
| 7. | UBS | 4,577.16 | 21 | 10 | 1,388.00 | 10
|
| 8. | CSFB | 4,477.44 | 23 | 6 | 3,432.23 | 15
|
| 9. | Deutsche Bank | 3,601.58 | 20 | 9 | 1,395.00 | 6
|
| 10. | Lehman | 3,210.73 | 20 | 8 | 1,459.19 | 8
|
|
|
| Total | $69,824.43 | 255 | $49,016.97 | 154
|
|
|
| Average size | $273.82 | $318.29
|
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|
|
|
| July 2003
|
| | | | | 2002 Comparables
|
| Underwriter | Amount | No. | Rank | Amount | No.
|
| 1. | UBS | 1,429.00 | 5 | 5 | 200.00 | 1
|
| 2. | Lehman | 1,083.67 | 6 | - | - | -
|
| 3. | Citigroup | 1,073.25 | 9 | 1 | 536.38 | 3
|
| 4. | Morgan Stanley | 1,018.61 | 6 | - | - | -
|
| 5. | Goldman Sachs | 996.13 | 7 | 3 | 289.89 | 6
|
| 6. | Deutsche Bank | 675.62 | 6 | - | - | -
|
| 7. | Merrill Lynch | 632.17 | 7 | 4 | 221.38 | 1
|
| 8. | CSFB | 588.95 | 5 | 6 | 123.33 | 1
|
| 9. | Banc of America | 531.67 | 4 | 7 | 123.33 | 1
|
| 10. | ABN Amro | 423.50 | 3 | 8 | 7.75 | 1
|
|
|
| Total | $9,348.68 | 49 | $1,843.72 | 11
|
|
|
| Average size | $190.79 | $167.61
|
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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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