JPMorgan top U.S. market convertibles underwriter year to date

• U.S. convertibles issuance totals $27.47 billion for year to date

• September U.S. convertibles issuance totals $2.67 billion in 11 deals

By Rebecca Melvin

New York, Sept. 30 - J.P. Morgan Securities Inc. remained the top convertibles underwriter for the year to date through September, bringing $6.06 billion in new issuance in 30 deals, accounting for 22% of total issuance, according to data compiled by Prospect News.

Bank of America was the No. 2 convertibles underwriter for the year to date, with $3.86 billion of new issuance in 22 deals, accounting for 14% of the total.

Total U.S. convertibles issuance for the year to date stands at $27.47 billion in 67 deals, which is slightly higher compared to $26.39 billion in 84 deals for the same period of 2009.

Bank of America was also the top convertibles underwriter for September, bringing $730 million in new issuance in four deals this past month, accounting for 27% of issuance.

UBS Securities took the No. 2 spot for September with $545 million of new issuance in two deals, accounting for 20% of the total; and JPMorgan was third, with $515 million in new issuance in four deals, accounting for 19% of the total.

For the third quarter, there was $9.51 billion of new issuance in 20 deals, with the average deal size standing at $476 million.

For September, there was $2.67 billion of U.S. convertibles issuance in 11 deals, with the average deal size standing at $243 million.

September's total compares to $2.05 billion of new issuance in August in four deals and to $3.14 billion of new issuance in September 2009 in 12 deals.

Notable deals

Among notable September deals were several that saw big price gains upon release for secondary dealings.

Newpark Resources Inc.'s $150 million of 4% convertibles moved up 5 points outright on their debut in the secondary market after pricing at the rich end of revised premium talk and at the tighter, revised price point for the coupon.

Volcano Corp.'s $100 million of 2.875% convertibles jumped to 106 on their debut and then extended gains in the following session to 108.

Level 3 Communications Inc.'s $175 million of 6.5% convertibles moved up smartly to 106.625 bid, 107.125 offered on their debut mid-month, along with higher underlying shares.

These smaller deals with outsized price gains were in contrast to last month's notable deals including SanDisk Corp.'s $1 billion of 1.5% convertibles brought Aug. 20, which saw its pricing slip in secondary dealings.

The month got off to a slow start, with no new issuance until nine days in when UBS AG priced a downsized $112.7 million of 6.75% mandatories linked to shares of GT Solar International Inc. on Sept. 9.

Year to date, U.S. market

2009 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	6.060	30	22.06%	1	6.679	42	25.31%
2	Bank of America	3.860	22	14.05%	9	0.900	9	3.41%
3	Goldman Sachs	3.312	11	12.06%	3	3.181	18	12.05%
4	Morgan Stanley	2.835	10	10.32%	4	2.803	19	10.62%
5	Credit Suisse	1.568	10	5.71%	5	2.578	15	9.77%
6	Deutsche Bank	1.535	10	5.59%	7	1.380	9	5.23%
7	UBS	1.487	9	5.41%	13	0.211	2	0.80%
8	Jefferies	1.355	4	4.93%	15	0.165	2	0.63%
9	ABG Sundal	1.300	2	4.73%
10	Citigroup	1.298	10	4.73%	2	3.267	22	12.38%
	Total	27.470	67	26.390	84
	Average size:	0.410	0.314
Year to date, global
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	8.702	45	15.03%	1	9.197	51	15.80%
2	Morgan Stanley	6.157	22	10.63%	2	6.793	35	11.67%
3	Bank of America	4.827	27	8.34%	13	1.073	11	1.84%
4	Goldman Sachs	4.140	14	7.15%	4	4.968	24	8.53%
5	Credit Suisse	2.853	20	4.93%	3	5.159	26	8.86%
6	Citigroup	2.457	18	4.24%	5	4.135	28	7.10%
7	UBS	2.164	16	3.74%	14	0.836	7	1.44%
8	Deutsche Bank	1.927	14	3.33%	9	2.525	18	4.34%
9	Barclays	1.709	10	2.95%	12	1.988	15	3.42%
10	ABG Sundal	1.514	4	2.61%
	Total	57.904	174	58.218	172
	Average size:	0.333	0.338
Third quarter, U.S. market
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	2.462	9	25.89%	1	2.477	12	32.92%
2	Goldman Sachs	2.147	5	22.57%	3	1.060	4	14.09%
3	Bank of America	1.228	7	12.90%	5	0.484	5	6.43%
4	Morgan Stanley	0.975	3	10.24%	6	0.430	5	5.71%
5	ABG Sundal	0.550	1	5.78%
6	UBS	0.545	2	5.72%	9	0.153	1	2.04%
7	Credit Suisse	0.444	2	4.67%	2	1.214	4	16.13%
8	Citigroup	0.318	1	3.34%	4	0.997	6	13.26%
9	Macquarie	0.300	1	3.15%
10	BOCI	0.300	1	3.15%
	Total	9.513	20	7.525	23
	Average size:	0.476	0.327
September, U.S. market
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Bank of America	0.730	4	27.36%	4	0.426	4	13.57%
2	UBS	0.545	2	20.41%	7	0.153	1	4.88%
3	JPMorgan	0.515	4	19.30%	2	0.595	5	18.94%
4	Credit Suisse	0.403	1	15.09%	9	0.070	1	2.23%
5	Morgan Stanley	0.395	1	14.79%	5	0.261	3	8.31%
6	Friedman Billings	0.050	1	1.87%
7	BMO	0.032	1	1.18%
	Total	2.668	11	3.140	12
	Average size:	0.243	0.262
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 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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