• U.S. market convertibles issuance totals $34.8 billion year to date
• November convertibles issuance totals $5.46 billion in 11 deals
By Rebecca Melvin
New York, Nov. 30 - J.P. Morgan Securities Inc. remained top U.S. market convertibles underwriter for the year to date through November, but Goldman Sachs & Co. moved up from its fourth position - upsetting Bank of America and Morgan Stanley - to take second place, according to data compiled by Prospect News.
Goldman Sachs was the top underwriter for November, bringing $1.22 billion in two new deals for a 22% share of the market. Deutsche Bank was a distant second place for November, bringing $748 million in two deals, totaling 14% of the total.
November new issuance totaled $5.46 billion in 11 deals, which compares to $3.19 billion in 12 deals for October.
Bank of America brought five deals in November, but that was only for 12% of the total.
JPMorgan and Morgan Stanley each brought three deals in November; Barclays Capital brought two; and the rest of the field brought one apiece, including Citigroup Global Markets Inc., BNP Paribas Securities Corp., RBS Securities Inc. and HSBC.
For the year to date, JPMorgan has accounted for $7.39 billion of new issuance in 48 deals, which is a little less than the $8.25 billion in new issuance from JPMorgan for the same 11-month period last year. Last year, however, JPMorgan was the fourth-ranked underwriter with a share of just 13% of the total for the first 11 months of the year.
Total volume of new convertibles issuance at the end of November stood at $34.8 billion, which is just over half of what last year's total issuance was at the end of November.
Among November's notable new deals was Ford Motor Co.'s upsized $2.5 billion of seven-year convertibles. The registered offering, which was originally going to be $2 billion in size, priced at the midpoint of talk via joint bookrunners Citigroup, Bank of America-Merrill Lynch, JPMorgan, Barclays Capital, Deutsche Bank, Goldman Sachs, Morgan Stanley and RBS. BNP Paribas and HSBC were also included in the underwriting syndicate.
Representative of the other deals were Jakks Pacific Inc., which priced $85 million of five-year convertibles via bookrunner Bank of America Merrill Lynch; and MasTec Inc., which priced $100 million of five-year convertible senior notes via joint bookrunners Morgan Stanley and Barclays Capital.
Also pricing during November were TeleCommunication System Inc.'s $103.5 million via Oppenheimer and Raymond James & Associates; United Rentals Inc.'s $172.5 million via Bank of America Merrill Lynch, Morgan Stanley and Wells Fargo; Liberty Global Inc.'s $935 million via Goldman Sachs; Kilroy Realty LP's $150 million via JPMorgan and Bank of America Merrill Lynch; TRW Automotive Inc.'s $285.75 million via JPMorgan and Bank of America Merrill Lynch; and DryShips Inc.'s $460 million of convertibles via Deutsche Bank.
Year to date
2008 Comparables
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | JPMorgan | 7.386 | 48 | 21.23% | 4 | 8.253 | 31 | 13.35%
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| 2 | Goldman Sachs | 4.721 | 23 | 13.57% | 5 | 7.430 | 22 | 12.02%
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| 3 | Bank of America | 4.249 | 37 | 12.21% | 1 | 11.476 | 24 | 18.56%
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| 4 | Morgan Stanley | 3.918 | 26 | 11.26% | 8 | 2.671 | 18 | 4.32%
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| 5 | Citigroup | 3.682 | 25 | 10.58% | 2 | 9.256 | 22 | 14.97%
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| 6 | Deutsche Bank | 2.688 | 15 | 7.73% | 11 | 2.331 | 11 | 3.77%
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| 7 | Credit Suisse | 2.652 | 17 | 7.62% | 10 | 2.421 | 17 | 3.92%
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| 8 | Barclays | 1.682 | 12 | 4.83% | 12 | 0.276 | 1 | 0.45%
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| 9 | Wachovia | 0.836 | 8 | 2.40% | 9 | 2.561 | 6 | 4.14%
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| 10 | Jefferies | 0.547 | 4 | 1.57% | 16 | 0.125 | 1 | 0.20%
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| Total | 34.800 | 108 | 61.825 | 106 |
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| Average size: | 0.322 | 0.583 |
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| November
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| | | | | 2008 Comparables
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| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
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| 1 | Goldman Sachs | 1.222 | 2 | 22.41% |
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| 2 | Deutsche Bank | 0.748 | 2 | 13.70% |
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| 3 | Bank of America | 0.661 | 5 | 12.11% |
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| 4 | JPMorgan | 0.503 | 3 | 9.22% |
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| 5 | Morgan Stanley | 0.395 | 3 | 7.24% |
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| 6 | Barclays | 0.338 | 2 | 6.19% |
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| 7 | Citigroup | 0.287 | 1 | 5.27% |
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| 8 | BNP Paribas | 0.287 | 1 | 5.27% |
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| 9 | RBS | 0.287 | 1 | 5.27% |
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| 10 | HSBC | 0.287 | 1 | 5.27% |
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| Total | 5.455 | 11 | 0 | 0 |
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| Average size: | 0.496 |
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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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