• U.S. convertibles issuance totals $400 million for January
By Rebecca Melvin
New York, Jan. 31 - J.P. Morgan Securities LLC was on top of the convertibles issuance league tables for January, which brought an anemic $400 million of new paper in only two deals, compared to $2.01 billion in new paper in seven deals for January 2010, according to data compiled by Prospect News.
JPMorgan was underwriter for $200 million of the new paper, or a 50% share.
Bank of America Merrill Lynch was the No. 2 convertibles underwriter for January, with $125 million of new issuance in one deal, accounting for 31% of the total.
Citigroup Global Markets Inc. took the third slot with just $75 million of new issuance in one deal, accounting for 19% of total issuance.
There were no runners up to round out the list as is usually true of the monthly convertibles tallies.
Globally, there was $1.26 billion of new paper in six deals. Lead underwriter on that list was Deutsche Bank AG, accounting for $235 million of the total in two deals, for a 19% share.
Bank in the United States, Amarin Corp. plc subsidiary Corsicanto Ltd. kicked off the new issue count for 2012, pricing a $150 million deal of 20-year exchangeable senior notes on Jan. 4 to yield 3.5% with an initial conversion premium of 25%.
The Rule 144A offering had a $22.5 million greenshoe and was priced via joint bookrunners Citigroup and JPMorgan.
Dublin-based Amarin develops drugs to treat central nervous system disorders.
Also pricing in January was PHH Corp., which sold an upsized $220 million of 5.5-year convertible senior notes at par to yield a coupon of 6% with an initial conversion premium of 25%.
The registered PHH deal was brought via JPMorgan and Bank of America. Barclays Capital Inc., Citigroup, Deutsche Bank Securities Inc., RBC Capital Markets, LLC and RBS Securities Inc. acted as the co-managers.
PHH is a Mt. Laurel, N.J.-based business process management services company for the mortgage and fleet management industries.
U.S. market, year to date
2011 Comparables
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | JPMorgan | 0.200 | 2 | 50.00% | 1 | 1.042 | 4 | 42.42%
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| 2 | Bank of America | 0.125 | 1 | 31.25% | 5 | 0.144 | 1 | 5.85%
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| 3 | Citigroup | 0.075 | 1 | 18.75% | 2 | 0.444 | 2 | 18.08%
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| Total | 0.400 | 2 | 2.455 | 8 |
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| Average size: | 0.200 | 0.307 |
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| Global, year to date |
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| | | | | 2011 Comparables |
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| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
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| 1 | Deutsche Bank | 0.235 | 2 | 18.58% | 5 | 0.375 | 3 | 6.59%
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| 2 | JPMorgan | 0.200 | 2 | 15.82% | 1 | 1.280 | 6 | 22.50%
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| 3 | Standard Bank | 0.175 | 1 | 13.84% |
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| 4 | Bank of America | 0.125 | 1 | 9.89% | 11 | 0.144 | 1 | 2.53%
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| 5 | Citigroup | 0.075 | 1 | 5.93% | 3 | 0.631 | 3 | 11.10%
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| 6 | DBS | 0.060 | 1 | 4.75% |
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| 6 | UBS | 0.060 | 1 | 4.75% |
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| 8 | AltaCorp | 0.005 | 1 | 0.39% |
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| 8 | BMO | 0.005 | 1 | 0.39% |
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| 8 | Cormark | 0.005 | 1 | 0.39% |
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| 8 | Haywood | 0.005 | 1 | 0.39% |
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| 8 | Raymond James | 0.005 | 1 | 0.39% | 21 | 0.025 | 1 | 0.44%
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| 8 | Scotia | 0.005 | 1 | 0.39% | 19 | 0.045 | 1 | 0.79%
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| 8 | TD | 0.005 | 1 | 0.39% | 22 | 0.019 | 1 | 0.34%
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| Total | 1.264 | 6 | 5.690 | 22 |
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| Average size: | 0.211 | 0.259 |
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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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