Lehman top convertibles underwriter year to date

* Convertibles issuance totals $11.70 billion year to date

* Morgan Stanley top convertibles underwriter in February

* Convertibles issuance $7.63 billion in February

New York, March 1 - Lehman Brothers took the top place among convertible underwriters for the year through February while Morgan Stanley was the leader for the month of February, according to data compiled by Prospect News.

Lehman Brothers held on to its lead established in January. Citigroup, the top convertible underwriter for all of 2003, is now number three for the year so far.

Meanwhile issuance volume rebounded during the month and after a slow start to the year overtook the comparable pace in 2003.

So far this year there has been $11.70 billion of new convertibles compared to $10.62 billion at the same point in 2003.

February's total was $7.63 billion, below December's $8.42 billion but otherwise the best level since July 2003's $11.27 billion.

Lehman's strong performance was helped by its role as sole bookrunner for Sovereign Bancorp Inc.'s $700 million sale of Trust PIERS. In January it brought to market a $1.094 billion deal for Teva Pharmaceutical Industries Ltd.

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 the investment bank exchangeables, issuance year to date is $10.35 billion, still ahead of the $9.20 billion at the same stage last year.

February's volume excluding these deals is $7.27 billion, behind December's $8.42 billion but otherwise the best month since July 2003's $11.27 billion.

The top underwriter positions are unchanged if the investment bank exchangeables are excluded.

Year to date 2004. including investment bank exchangeables

2003 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1.	Lehman	1.850	6	15.81%	9	0.316	1	2.98%
2.	Morgan Stanley	1.685	16	14.40%	7	0.923	5	8.69%
3.	Citigroup	1.617	7	13.82%	6	1.074	6	10.11%
4.	UBS	1.400	3	11.96%	10	0.259	2	2.44%
5.	Merrill Lynch	0.991	6	8.47%	2	1.411	6	13.28%
6.	Deutsche Bank	0.930	4	7.95%	3	1.338	3	12.59%
7.	Banc of America	0.788	4	6.74%	4	1.289	6	12.14%
8.	CSFB	0.624	2	5.33%	8	0.827	3	7.78%
9.	Goldman Sachs	0.605	12	5.17%	1	2.033	10	19.14%
10.	Bear Stearns	0.460	5	3.93%	-	-	-
	Total	$11.701	70	$10.622	31
	Average size	$0.167	$0.343
February 2004, including investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1.	Morgan Stanley	1.409	11	18.47%	6	0.173	3	4.38%
2.	Merrill Lynch	0.991	6	12.99%	2	1.215	4	30.73%
3.	Citigroup	0.806	4	10.57%	4	0.324	4	8.18%
4.	UBS	0.800	2	10.49%	7	0.125	1	3.16%
5.	Lehman	0.749	3	9.81%	-	-	-	-
6.	Deutsche Bank	0.625	2	8.19%	1	1.338	3	33.83%
7.	CSFB	0.624	2	8.18%	8	0.077	1	1.94%
8.	Banc of America	0.488	3	6.40%	3	0.405	3	10.24%
9.	Goldman Sachs	0.482	6	6.31%	9	0.039	4	0.99%
10.	Bear Stearns	0.200	2	2.62%	-	-	-	-
	Total	$7.629	40	$3.954	21
	Average size	$0.191	$0.188
Year to date 2004. excluding investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1.	Lehman	1.794	3	17.35%	8	0.316	1	3.44%
2.	Morgan Stanley	1.522	9	14.72%	6	0.899	4	9.77%
3.	UBS	1.400	3	13.53%	9	0.259	2	2.82%
4.	Deutsche Bank	0.930	4	8.99%	10	0.117	1	1.28%
5.	Merrill Lynch	0.841	5	8.13%	2	1.319	4	14.34%
6.	Banc of America	0.788	4	7.62%	3	1.289	6	14.02%
7.	Citigroup	0.751	3	7.26%	5	1.049	5	11.40%
8.	CSFB	0.624	2	6.03%	7	0.827	3	8.99%
9.	Goldman Sachs	0.525	3	5.07%	1	1.986	5	21.60%
10.	Bear Stearns	0.460	5	4.45%	-	-	-	-
	Total	$10.345	40	$9.195	18
	Average size	$0.259	$0.511
February 2004, excluding investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1.	Morgan Stanley	1.350	8	18.56%	5	0.149	2	5.72%
2.	Merrill Lynch	0.841	5	11.56%	1	1.175	3	45.26%
3.	UBS	0.800	2	11.00%	6	0.125	1	4.81%
4.	Citigroup	0.751	3	10.33%	3	0.299	3	11.50%
5.	Lehman	0.700	1	9.62%	-	-	-	-
6.	Deutsche Bank	0.625	2	8.59%	7	0.117	1	4.53%
7.	CSFB	0.624	2	8.58%	8	0.077	1	2.95%
8.	Banc of America	0.488	3	6.71%	2	0.405	3	15.60%
9.	Goldman Sachs	0.450	2	6.19%	-	-	-	-
10.	Bear Stearns	0.200	2	2.75%	-	-	-	-
	Total	$7.273	27	$2.596	11
	Average size	$0.269	$0.236
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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