JPMorgan top U.S. market convertibles underwriter for 2010

• U.S. convertibles issuance totals $42.74 billion for 2010

By Rebecca Melvin

New York, Dec. 31 - The top U.S. convertibles underwriter for 2010 was J.P. Morgan Securities LLC, which brought $8.28 billion of new issuance in 40 deals, accounting for 19.4% of total issuance, according to data compiled by Prospect News.

JPMorgan's 2010 deal total was 10% higher than the firm's 2009 deal total of $7.58 billion.

With about $5.5 billion plus each, Morgan Stanley & Co. Inc. and Bank of America Merrill Lynch were neck and neck as the second and third most prolific underwriters for the year.

Morgan Stanley was the No. 2 convertibles underwriter, with $5.84 billion of new issuance in 20 deals, accounting for 13.7% of the total; and Bank of America took the third slot with $5.58 billion of new issuance in 31 deals, accounting for 13% of total issuance.

Goldman Sachs & Co., Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. filled out the remainder of the top six underwriters and kept the list pretty similar to the previous year's.

Morgan Stanley took the No. 1 slot for the fourth quarter of 2010, when U.S. convertibles deal volume ticked up a bit.

Total U.S. convertibles issuance for 2010 stood at $42.74 billion in 100 deals, which was lower compared to $59.62 billion in 120 deals for 2009. A $19 billion deal of common equivalent securities priced by Bank of America last year inflated 2009's total, however. Without the Bank of America deal, volume total for 2010 would have edged over 2009's.

For December alone, there was $2.84 billion of U.S. convertibles issuance in 12 deals, with average deal size standing at $236 million each.

Among December's notable deals were Omnicare Inc.'s $500 million of 15-year convertibles to yield 3.75%; Clearwire Corp.'s upsized $650 million of 30-year exchangeables to yield 8.25%; HeartWare International Inc.'s upsized $125 million of seven year convertibles to yield 3.5%; ShengdaTech Inc.'s upsized $130 million of five-year convertibles to yield 6.5%; and RTI International Metals Inc.'s upsized $200 million offering of five-year convertibles to yield 3%.

Year to date, U.S. market

2009 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	8.283	40	19.38%	2	7.576	49	12.71%
2	Morgan Stanley	5.835	20	13.65%	5	4.202	28	7.05%
3	Bank of America	5.576	31	13.04%	1	21.176	18	35.52%
4	Goldman Sachs	4.346	15	10.16%	4	5.063	26	8.49%
5	Citigroup	3.700	16	8.66%	3	7.261	27	12.18%
6	Deutsche Bank	2.896	17	6.77%	7	2.822	16	4.73%
7	Credit Suisse	2.437	14	5.70%	6	3.038	20	5.10%
8	Barclays	2.024	10	4.73%	9	1.702	12	2.85%
9	UBS	1.808	13	4.23%	12	0.484	5	0.81%
10	Jefferies	1.462	6	3.42%	11	0.547	4	0.92%
	Total	42.740	100	59.624	120
	Average size:	0.428	0.497
Year to date, global
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	11.462	59	12.76%	2	10.560	63	9.90%
2	Morgan Stanley	9.157	32	10.20%	4	8.304	45	7.79%
3	Bank of America	6.723	37	7.49%	1	21.504	21	20.16%
4	Goldman Sachs	5.878	23	6.55%	5	7.886	39	7.39%
5	Citigroup	5.715	28	6.36%	3	8.702	37	8.16%
6	Credit Suisse	4.711	30	5.25%	6	6.841	38	6.41%
7	Deutsche Bank	4.308	25	4.80%	8	4.865	30	4.56%
8	Barclays	3.592	17	4.00%	11	3.197	23	3.00%
9	UBS	2.485	20	2.77%	14	1.663	14	1.56%
10	Standard Chartered	1.953	9	2.17%	31	0.250	1	0.23%
	Total	89.814	251	106.658	269
	Average size:	0.358	0.396
Fourth quarter, U.S. market
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	3.001	10	19.77%	5	1.399	9	4.21%
2	Citigroup	2.403	6	15.84%	2	3.994	5	12.02%
3	JPMorgan	2.202	10	14.51%	6	0.897	7	2.70%
4	Bank of America	1.654	9	10.90%	1	20.276	9	61.01%
5	Deutsche Bank	1.361	7	8.97%	4	1.442	7	4.34%
6	Goldman Sachs	1.035	4	6.82%	3	1.883	8	5.66%
7	Barclays	0.872	3	5.75%	7	0.506	4	1.52%
8	Credit Suisse	0.863	4	5.68%	8	0.460	5	1.38%
9	RBC	0.556	1	3.66%
10	UBS	0.301	4	1.98%	13	0.274	3	0.82%
	Total	15.174	33	33.234	36
	Average size:	0.460	0.923
December, U.S. market
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	0.645	4	22.75%	8	0.133	1	0.54%
2	Bank of America	0.523	3	18.44%	1	19.423	2	79.05%
3	Deutsche Bank	0.393	3	13.86%	7	0.133	1	0.54%
4	Barclays	0.317	2	11.16%
5	Morgan Stanley	0.180	2	6.34%	5	0.246	2	1.00%
6	Goldman Sachs	0.167	1	5.87%	4	0.319	3	1.30%
7	Credit Suisse	0.132	2	4.65%	3	0.331	3	1.35%
8	Citigroup	0.115	1	4.05%	2	3.546	2	14.43%
9	Friedman Billings	0.115	1	4.05%	11	0.052	1	0.21%
10	Stifel Nicolaus	0.100	1	3.52%
	Total	2.837	12	24.571	12
	Average size:	0.236	2.048
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.

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