• U.S. convertibles issuance totals $31.64 billion for year to date
• October U.S. convertibles issuance totals $4.11 billion
By Rebecca Melvin
New York, Oct. 29 - J.P. Morgan Securities LLC remained the top convertibles underwriter for the year to date through October, bringing $6.35 billion in new issuance in 31 deals, accounting for 20% of total issuance, according to data compiled by Prospect News.
Morgan Stanley was the No. 2 convertibles underwriter for the year to date, unseating Bank of America, with $4.42 billion of new issuance, in 14 deals, accounting for 14% of the total.
Total U.S. convertibles issuance for the year to date stands at $31.64 billion in 75 deals, which is slightly higher compared to $26.58 billion in 96 deals for the same period of 2009.
For October alone, there was $4.11 billion of U.S. convertibles issuance in eight deals, with average deal size standing at $513 million.
Morgan Stanley was the top convertibles underwriter for October, bringing $1.59 billion in new issuance in four deals this past month, accounting for 39% of issuance.
Citigroup took the No. 2 spot for October with $1.38 billion of new issuance in two deals, accounting for 34% of the total; and JPMorgan was third, with $270 million in new issuance in one deal, accounting for 7% of the total.
October's total is higher compared to September when $2.67 billion of new issuance in 11 deals priced.
Notable is that there is more paper coming with longer maturities than the five-year issues that had become the norm of late. October brought several seven-year deals, including SL Green Realty Corp.'s $300 million of 3% convertibles, Cubist Pharmaceutical Inc.'s $400 million of 2.5% convertibles and Seadrill Ltd.'s $650 million of 3.375% convertibles.
In addition, there was Ciena Corp.'s $320 million of 3.75% eight-year convertibles and Digital River Inc.'s $300 million of 20-year 2% convertibles, which is de facto five-year issue, with a call/put in year five.
Year to date, U.S. market
2009 Comparables
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | JPMorgan | 6.352 | 31 | 20.08% | 1 | 6.940 | 45 | 23.46%
|
| 2 | Morgan Stanley | 4.420 | 14 | 13.97% | 2 | 3.561 | 23 | 12.04%
|
| 3 | Bank of America | 4.036 | 23 | 12.76% | 9 | 1.092 | 11 | 3.69%
|
| 4 | Goldman Sachs | 3.537 | 12 | 11.18% | 3 | 3.522 | 21 | 11.91%
|
| 5 | Citigroup | 2.676 | 12 | 8.46% | 4 | 3.427 | 24 | 11.59%
|
| 6 | Deutsche Bank | 1.710 | 11 | 5.40% | 7 | 1.941 | 13 | 6.56%
|
| 7 | Credit Suisse | 1.600 | 11 | 5.06% | 5 | 2.707 | 17 | 9.15%
|
| 8 | UBS | 1.591 | 10 | 5.03% | 14 | 0.211 | 2 | 0.71%
|
| 9 | Jefferies | 1.393 | 5 | 4.40% | 11 | 0.547 | 4 | 1.85%
|
| 10 | ABG Sundal | 1.300 | 2 | 4.11% |
|
| Total | 31.640 | 75 | 29.578 | 96 |
|
|
|
| Average size: | 0.422 | 0.308 |
|
|
|
|
|
| Year to date, global
|
| | | | | 2009 Comparables
|
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | JPMorgan | 9.186 | 47 | 13.72% | 1 | 9.695 | 57 | 14.45%
|
| 2 | Morgan Stanley | 7.742 | 26 | 11.56% | 2 | 7.551 | 39 | 11.26%
|
| 3 | Bank of America | 4.812 | 26 | 7.19% | 13 | 1.420 | 14 | 2.12%
|
| 4 | Goldman Sachs | 4.625 | 17 | 6.91% | 4 | 5.555 | 29 | 8.28%
|
| 5 | Citigroup | 4.095 | 22 | 6.12% | 5 | 4.621 | 32 | 6.89%
|
| 6 | Credit Suisse | 3.601 | 23 | 5.38% | 3 | 5.903 | 31 | 8.80%
|
| 7 | Deutsche Bank | 2.343 | 16 | 3.50% | 6 | 3.688 | 24 | 5.50%
|
| 8 | UBS | 2.268 | 17 | 3.39% | 14 | 1.061 | 9 | 1.58%
|
| 9 | Barclays | 2.180 | 12 | 3.26% | 11 | 2.670 | 19 | 3.98%
|
| 10 | Standard Chartered | 1.853 | 8 | 2.77% | 31 | 0.250 | 1 | 0.37%
|
| Total | 66.948 | 198 | 67.082 | 208 |
|
|
|
| Average size: | 0.338 | 0.323 |
|
|
|
|
|
| October, U.S. market
|
| | | | | 2009 Comparables
|
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | Morgan Stanley | 1.585 | 4 | 38.59% | 1 | 0.758 | 4 | 23.78%
|
| 2 | Citigroup | 1.377 | 2 | 33.53% | 8 | 0.161 | 2 | 5.04%
|
| 3 | JPMorgan | 0.270 | 1 | 6.57% | 5 | 0.261 | 3 | 8.18%
|
| 4 | Goldman Sachs | 0.225 | 1 | 5.48% | 4 | 0.342 | 3 | 10.72%
|
| 5 | Deutsche Bank | 0.175 | 1 | 4.26% | 2 | 0.561 | 4 | 17.59%
|
| 6 | Bank of America | 0.150 | 1 | 3.65% | 6 | 0.192 | 2 | 6.01%
|
| 7 | UBS | 0.083 | 1 | 2.03% |
|
| 8 | BNP | 0.083 | 1 | 2.03% |
|
| 9 | RBS | 0.083 | 1 | 2.03% |
|
| 10 | Jefferies | 0.037 | 1 | 0.91% | 3 | 0.383 | 2 | 12.00%
|
| 11 | Credit Suisse | 0.037 | 1 | 0.91% | 9 | 0.129 | 2 | 4.05%
|
| Total | 4.107 | 8 | 3.188 | 12 |
|
|
|
| Average size: | 0.513 | 0.266 |
|
|
|
|
|
| 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 (for U.S. deals), or all underwritten offerings (global deals).
• 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 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.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
