* Convertibles issuance $97.61 billion for 2003
* JP Morgan top convertibles underwriter in fourth quarter
* Convertibles issuance $17.37 billion in fourth quarter
* UBS top convertibles underwriter in December
* Convertibles issuance $8.17 billion in December
New York, Jan. 1 - Citigroup was the top underwriter of convertibles in 2003, breaking Merrill Lynch & Co.'s three-year run in the number one position, according to data compiled by Prospect News.
But the finish was very close - Citigroup was a mere $148 million or 1.1% ahead of second-placed JP Morgan.
Merrill Lynch, meanwhile, plunged to number five. It had been number one since 2000; Morgan Stanley was first in 1999.
Meanwhile total issuance for the year was the second highest ever at $97.61 billion, 85% of the record of $114.80 billion set in 2001. But it was 61.6% above 2002's $60.40 billion and 51.8% above the previous second busiest year, 2000, when $64.29 billion of convertibles came to market.
December's total of $8.17 billion was very close to the monthly average for 2003 of $8.13 billion, while the fourth quarter's $17.37 billion was significantly below the $24.40 billion quarterly average for the year.
The Prospect News figures cover dollar-denominated deals offered in the United States 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, the year's volume was $93.65 billion in 286 deals, the fourth quarter's was $16.85 billion in 59 deals and December's was $7.96 billion in 26 deals.
Citigroup moved up to the number one position from number two in 2002. JP Morgan's climb to second was from sixth in 2002.
Goldman, Sachs & Co. and Morgan Stanley were unchanged in positions three and four respectively.
Below Merrill Lynch at fifth, Banc of America and UBS both moved up one slot to sixth and seventh respectively, and both at the expense of Credit Suisse First Boston, which fell to eighth from fifth in 2002.
Lehman Brothers and Deutsche Bank Securities held steady in ninth and 10th places.
But Wachovia Securities jumped to number 11 with $1.77 billion from number 16 with just $55 million the year before.
2003
2002 Comparables
| Underwriter | Amount | No. | Rank | Amount | No.
|
| 1. | Citigroup | 13,852.58 | 69 | 2 | 11,702.78 | 47
|
| 2. | JP Morgan | 13,704.54 | 51 | 6 | 4,213.80 | 17
|
| 3. | Goldman Sachs | 11,686.63 | 70 | 3 | 9,083.00 | 39
|
| 4. | Morgan Stanley | 11,127.98 | 63 | 4 | 5,696.58 | 23
|
| 5. | Merrill Lynch | 10,667.41 | 64 | 1 | 14,568.49 | 49
|
| 6. | Banc of America | 7,658.43 | 42 | 7 | 4,107.08 | 18
|
| 7. | UBS | 7,253.70 | 39 | 8 | 2,134.92 | 13
|
| 8. | CSFB | 6,093.03 | 34 | 5 | 4,312.02 | 19
|
| 9. | Lehman | 5,315.33 | 38 | 9 | 1,919.19 | 10
|
| 10. | Deutsche Bank | 5,048.88 | 25 | 10 | 1,395.00 | 6
|
| 11. | Wachovia | 1,774.17 | 11 | 16 | 55.00 | 1
|
| 12. | Bear Stearns | 938.61 | 10 | 11 | 515.00 | 5
|
| 13. | Piper Jaffray | 725.00 | 2 | - | - | -
|
| 14. | ABN Amro | 556.67 | 25 | 13 | 168.25 | 12
|
| 15. | CIBC | 400.00 | 4 | 12 | 193.50 | 3
|
|
|
| Total | $97,607.96 | 412 | $60,400.37 | 210
|
|
|
| Average size | $236.91 | $287.62
|
|
|
|
|
| Fourth quarter 2003
|
| | | | | 2002 Comparables
|
| Underwriter | Amount | No. | Rank | Amount | No.
|
| 1. | JPMorgan | 2,596.46 | 12 | 9 | 153.33 | 1
|
| 2. | Merrill Lynch | 2,188.58 | 13 | 5 | 1,148.00 | 8
|
| 3. | Citigroup | 1,797.31 | 10 | 3 | 1,415.45 | 9
|
| 4. | Morgan Stanley | 1,608.17 | 11 | 2 | 1,721.00 | 8
|
| 5. | UBS | 1,583.49 | 11 | 7 | 746.92 | 3
|
| 6. | Lehman | 1,575.45 | 13 | 8 | 460.00 | 2
|
| 7. | Goldman Sachs | 1,280.25 | 9 | 4 | 1,264.27 | 10
|
| 8. | CSFB | 1,254.38 | 9 | 6 | 879.79 | 4
|
| 8. | Banc of America | 1,202.00 | 10 | 1 | 1,860.41 | 7
|
| 10. | Deutsche Bank | 1,195.00 | 5 | - | - | -
|
|
|
| Total | $17,369.11 | 93 | $9,905.18 | 39
|
|
|
| Average size | $186.76 | $253.98
|
|
|
|
|
| December 2003
|
| | | | | 2002 Comparables
|
| Underwriter | Amount | No. | Rank | Amount | No.
|
| 1. | UBS | 1,526.25 | 5 | 3 | 416.67 | 1
|
| 2. | JPMorgan | 1,293.13 | 5 | 8 | 153.33 | 1
|
| 3. | Merrill Lynch | 1,194.17 | 6 | 5 | 192.00 | 2
|
| 4. | Citigroup | 1,115.08 | 6 | 7 | 183.33 | 2
|
| 5. | Morgan Stanley | 969.29 | 6 | 6 | 190.00 | 2
|
| 6. | CSFB | 921.88 | 5 | 1 | 606.67 | 2
|
| 7. | Lehman | 282.50 | 3 | 9 | 10.00 | 1
|
| 8. | Banc of America | 235.00 | 2 | 2 | 570.00 | 2
|
| 9. | Bear Stearns | 230.00 | 2 | - | - | -
|
| 10. | Goldman Sachs | 201.44 | 3 | 4 | 354.01 | 2
|
|
|
| Total | $8,167.72 | 35 | $2,676.01 | 10
|
|
|
| Average size | $233.36 | $267.60
|
|
|
|
|
| Prospect News Convertibles Underwriter Rankings
|
|
|
Criteria
* The tables include all 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.
* 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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