• U.S. convertibles issuance reaches $15.26 billion for year to date
• April U.S. convertibles issuance totals $1.3 billion in five deals
By Rebecca Melvin
New York, April 29 - Citigroup Global Markets Inc. remained the top underwriter of convertible debt for the year to date for the second straight month, as April's issuance volume lagged March's total considerably, according to Prospect News data.
Total U.S. new issuance stands at $15.26 billion in 42 deals for the year to date through April, up from $13.45 billion a month ago and higher by 25% compared to the same four-month period in 2010, when issuance stood at $12.19 billion in 35 deals.
For April alone there were five new deals totaling $1.3 billion, which lagged March's 21 deals totaling $9.91 billion in new issuance.
For the year so far, Citigroup has underwritten $3.39 billion of new issuance in 12 deals, accounting for 22.2% of total volume.
Goldman Sachs & Co. took second place on the league tables with $2.82 billion in eight deals, for 18.5% of the total; and J.P. Morgan Securities LLC was No. 3 with $2.18 billion in 17 deals, accounting for 14.3% of the total.
Among April's notable deals, PPL Corp. priced an upsized $850 million of three-year mandatory convertible equity units with an 8.75% yield. That deal was brought by Credit Suisse, Merrill Lynch, Citigroup, JPMorgan and UBS.
A123 Systems Inc. priced $125 million of five-year convertible subordinated notes to yield 3.75%. Deutsche Bank and Goldman were the joint bookrunners of that deal, with Morgan Stanley and Barclays as joint lead managers and Lazard Capital and Pacific Crest as co-managers.
Ramco-Gershenson Properties Trust priced an upsized $80 million of 7.25% convertible perpetual preferred shares at the beginning of the month and a $20 million add-on of the same series shares at the end of the month.
Joint bookrunners of the Ramco paper were Deutsche Bank and JPMorgan, with KeyBanc Capital Markets Inc. and Stifel, Nicolaus & Co. Inc. acting as the lead managers, and Comerica Securities Inc., PNC Capital Markets LLC, and RBS Securities Inc. acting as the co-managers.
Year to date, U.S. market
2010 Comparables
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
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| 1 | Citigroup | 3.391 | 12 | 22.22% | 9 | 0.458 | 6 | 3.76%
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| 2 | Goldman Sachs | 2.819 | 8 | 18.47% | 5 | 0.930 | 4 | 7.63%
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| 3 | JPMorgan | 2.178 | 17 | 14.27% | 1 | 2.855 | 17 | 23.43%
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| 4 | Bank of America | 1.143 | 10 | 7.49% | 2 | 1.694 | 10 | 13.90%
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| 5 | Morgan Stanley | 1.109 | 6 | 7.27% | 3 | 1.685 | 6 | 13.83%
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| 6 | UBS | 0.953 | 6 | 6.24% | 10 | 0.324 | 4 | 2.66%
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| 7 | Barclays | 0.717 | 6 | 4.70% | 8 | 0.609 | 5 | 5.00%
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| 8 | Deutsche Bank | 0.654 | 8 | 4.28% | 4 | 1.061 | 7 | 8.70%
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| 9 | Wells Fargo | 0.371 | 4 | 2.43% |
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| 10 | Credit Suisse | 0.324 | 3 | 2.12% | 6 | 0.869 | 6 | 7.13%
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| Total | 15.261 | 42 | 12.189 | 35 |
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| Average size: | 0.363 | 0.348 |
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| Year to date, global
|
| | | | | 2010 Comparables
|
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | Citigroup | 4.046 | 15 | 13.66% | 7 | 1.143 | 11 | 4.51%
|
| 2 | Goldman Sachs | 3.273 | 11 | 11.05% | 6 | 1.145 | 6 | 4.52%
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| 3 | JPMorgan | 3.075 | 23 | 10.38% | 1 | 4.412 | 25 | 17.42%
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| 4 | Morgan Stanley | 2.286 | 10 | 7.72% | 2 | 3.768 | 12 | 14.87%
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| 5 | Bank of America | 1.300 | 11 | 4.39% | 3 | 2.470 | 13 | 9.75%
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| 6 | Barclays | 1.155 | 9 | 3.90% | 10 | 0.773 | 7 | 3.05%
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| 7 | UBS | 1.103 | 7 | 3.72% | 9 | 0.780 | 9 | 3.08%
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| 8 | BNP | 1.058 | 8 | 3.57% | 11 | 0.479 | 5 | 1.89%
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| 9 | Credit Suisse | 1.020 | 8 | 3.45% | 4 | 2.053 | 15 | 8.10%
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| 10 | Deutsche Bank | 0.837 | 9 | 2.83% | 5 | 1.327 | 10 | 5.24%
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| Total | 29.617 | 92 | 25.336 | 91 |
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| Average size: | 0.322 | 0.278 |
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| April, U.S. market
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| | | | | 2010 Comparables
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| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | JPMorgan | 0.256 | 3 | 19.69% | 2 | 0.771 | 3 | 18.53%
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| 2 | Citigroup | 0.196 | 1 | 15.07% | 9 | 0.138 | 1 | 3.32%
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| 2 | Credit Suisse | 0.196 | 1 | 15.07% | 8 | 0.142 | 1 | 3.43%
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| 2 | Merrill Lynch | 0.196 | 1 | 15.07% |
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| 2 | UBS | 0.196 | 1 | 15.07% |
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| 6 | RBC | 0.075 | 1 | 5.78% |
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| 6 | Stifel | 0.075 | 1 | 5.78% |
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| 8 | Morgan Stanley | 0.050 | 1 | 3.85% | 1 | 1.150 | 1 | 27.65%
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| 8 | Wells Fargo | 0.050 | 1 | 3.85% |
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| 10 | Deutsche Bank | 0.010 | 1 | 0.77% | 3 | 0.530 | 2 | 12.74%
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| Total | 1.298 | 5 | 4.159 | 9 |
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| Average size: | 0.260 | 0.462 |
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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 (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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