Banc of America holds on as top U.S. convertible underwriter year to date

• Issuance totals $57.97 billion year to date through July

• Slow July sees $3.21 billion come to market

By Kenneth Lim

Boston, July 31 - The top five convertible underwriters remained unchanged at the end of July, with Banc of America holding on to its top spot amid an overall slowdown in issuance.

Banc of America underwrote $10.87 billion worth of convertibles in the first seven months of 2009 from 21 deals, accounting for about 18.76% of total issuance.

In second place, Citigroup brought out about $9.00 billion from 20 deals, which represents a 15.52% market share. Lehman Brothers, which overtook JPMorgan to take the third spot, hung on to its position with $8.47 billion from 12 offerings, a 14.61% share.

Total issuance for the year to date continued to lag year-ago levels.

A total of $57.97 billion of convertibles has been priced so far this year, down from the $61.69 billion in the first seven months of 2007.

July's slow primary market did not help. Total issuance in July was $3.21 billion, less than the $3.62 billion issued in July 2007 and below the $7.08 billion that arrived in June 2008.

Average deal size, however, has increased compared to a year ago. The average deal so far in 2008 was about $598 million, compared to $425 million in the same period in 2007. July's average deal size was $357 million, up from $259 million in July 2007.

The top underwriter in July was Banc of America, which brought $633 million of convertibles to the market from two deals. Goldman Sachs was the second most prolific underwriter in the month with deals worth $583 million. JPMorgan, in fourth place year to date, had the third spot for July with $550 million worth of convertibles.

Year to date

2007 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Banc of America	10.872	21	18.76%	5	5.257	26	8.52%
2	Citigroup	8.996	20	15.52%	1	9.779	29	15.85%
3	Lehman	8.469	12	14.61%	8	3.423	16	5.55%
4	JPMorgan	7.329	27	12.64%	2	8.983	36	14.56%
5	Goldman Sachs	6.930	20	11.95%	9	3.394	17	5.50%
6	Wachovia	2.526	6	4.36%	13	0.530	4	0.86%
7	UBS	2.403	16	4.15%	10	2.939	18	4.76%
8	Merrill Lynch	2.366	17	4.08%	6	5.045	22	8.18%
9	Deutsche Bank	2.331	11	4.02%	3	7.321	18	11.87%
10	Morgan Stanley	2.289	16	3.95%	4	7.144	13	11.58%
	Total	57.968	97	61.693	145
	Average size:	0.598	0.425
July
					2007 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Banc of America	0.633	2	19.71%	5	0.310	2	8.56%
2	Goldman Sachs	0.583	3	18.16%
3	JPMorgan	0.550	3	17.12%	1	1.008	5	27.83%
4	UBS	0.433	2	13.49%	3	0.625	3	17.27%
5	Wachovia	0.233	1	7.26%
6	Credit Suisse	0.196	2	6.10%	6	0.207	2	5.73%
7	Morgan Stanley	0.183	1	5.71%
8	Merrill Lynch	0.150	1	4.67%
9	Citigroup	0.133	1	4.15%	2	0.998	4	27.56%
10	Deutsche Bank	0.046	1	1.43%
	Total	3.213	9	3.620	14
	Average size:	0.357	0.259
Prospect News Convertibles Underwriter Rankings

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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