• JPMorgan leads underwriters in July
• Convertibles issuance at $61.391 billion year to date
• Convertibles issuance totals $3.59 billion in July
By Evan Weinberger
New York, July 31 – Citigroup maintained its year-to-date lead in the convertibles league tables as new issuance slipped from June, according to data compiled by Prospect News.
While Citigroup hasn’t produced the largest number of deals in 2007, it has raised the most money so far. The firm has raised $9.745 billion in 29 deals so far this year, a 15.87% share of the total year-to-date. That total represents approaching double the amount raised through the end of July in 2006, when Citigroup raised $5.836 billion in 19 deals.
JPMorgan was the leading money-raiser in July, however, with $1.008 billion in five deals, which also led for the month. That represented a 28.06% share of the $3.59 billion in new deals in July. JPMorgan maintained second place in the standings for the year, raising $8.983 billion in 36 new deals, representing a 14.63% share of the year’s total. Last year at this point, JPMorgan was in eighth place, raising $3.123 billion in 14 new deals, representing 8.15% of the total for the first seven months of 2006.
Citigroup was right behind JPMorgan in July, raising $998 million in four deals, representing 28.02% of the total. The two were joint bookrunners on the largest offering of the month, $1.15 billion in convertible senior notes from Newmont Mining Corp. issued in two tranches.
Overall, the $3.59 billion in 14 new convertibles issued in July represents a steep decline from the $8.039 billion issued in 29 deals in June.
Sitting in third place in the year-to-date standings is Deutsche Bank, which raised $7.258 billion through 18 deals, representing 11.82% of total new issuance for the year. Deutsche Bank didn’t take part in any new convertible issues in July.
Third place for the month went to UBS, which raised $595 million in three deals, representing a 16.57% share of the monthly total.
The gap separating top underwriters widened a bit in July, with $2.487 billion separating the first- and third-ranked issuers for the year in July. The gap was $2.157 in June.
Total issuance volume stands at $61.391 billion, the highest year-to-date total since 2003. Prospect News began keeping comparable data in 2002. The year-to-date total is 60.3% more than the $38.295 billion raised in the same period in 2006.
Issuance for July was up 43% from a similar point in 2006. There was $2.456 billion raised in six new issues in July 2006, compared with $3.59 billion in 14 new deals this year. Deal volume slowed from $8.039 in 29 new deals in June.
The Prospect News figures cover dollar-denominated deals offered in the United States as registered transactions or under Rule 144A.
Year to date
2006 Comparables
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
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| 1 | Citigroup | 9.745 | 29 | 15.87% | 2 | 5.836 | 19 | 15.24%
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| 2 | JPMorgan | 8.983 | 36 | 14.63% | 8 | 3.123 | 14 | 8.15%
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| 3 | Deutsche Bank | 7.258 | 18 | 11.82% | 9 | 1.078 | 4 | 2.81%
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| 4 | Morgan Stanley | 7.144 | 13 | 11.64% | 3 | 5.595 | 18 | 14.61%
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| 5 | Banc of America | 5.227 | 26 | 8.51% | 7 | 3.133 | 19 | 8.18%
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| 6 | Merrill Lynch | 5.035 | 22 | 8.20% | 1 | 6.105 | 23 | 15.94%
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| 7 | Credit Suisse | 4.323 | 15 | 7.04% | 10 | 0.963 | 7 | 2.51%
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| 8 | Lehman | 3.423 | 16 | 5.58% | 6 | 3.204 | 7 | 8.37%
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| 9 | Goldman Sachs | 3.361 | 17 | 5.47% | 4 | 3.689 | 12 | 9.63%
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| 10 | UBS | 2.867 | 18 | 4.67% | 5 | 3.534 | 15 | 9.23%
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| Total | 61.391 | 145 | 38.295 | 76 |
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| Average size: | 0.423 | 0.504 |
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| July |
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| | | | | 2006 Comparables |
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| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
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| 1 | JPMorgan | 1.008 | 5 | 28.06% | 5 | 0.192 | 1 | 7.80%
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| 2 | Citigroup | 0.998 | 4 | 27.79% | 2 | 0.476 | 2 | 19.36%
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| 3 | UBS | 0.595 | 3 | 16.57% | 4 | 0.300 | 1 | 12.21%
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| 4 | Lehman | 0.438 | 2 | 12.19% |
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| 5 | Banc of America | 0.310 | 2 | 8.64% | 6 | 0.149 | 1 | 6.09%
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| 6 | Credit Suisse | 0.207 | 2 | 5.78% |
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| 7 | Keefe Bruyette | 0.018 | 1 | 0.50% |
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| 8 | Sterne Agee | 0.017 | 1 | 0.47% |
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| Total | 3.590 | 14 | 2.456 | 6 |
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| Average size: | 0.256 | 0.409 |
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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.
• 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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