• Preferred stock issuance vastly outpaces 2011 levels
By Stephanie N. Rotondo
Phoenix, Dec. 31 - Preferred stock new issuance in 2012 was more than double that seen in 2011, according to data compiled by Prospect News.
Year to date, issuers raised $41.5 billion in 265 transactions. That compared to $20.41 billion raised in the previous year from 115 new issues.
Bank of America Merrill Lynch led the pack, taking the year's top underwriter spot. The bank facilitated 94 preferred stock deals, which brought in $5.44 billion, or 13.12% of the market share.
Wells Fargo Securities LLC was in second place, underwriting 52 deals for $5.12 billion, or 12.33% of the market share.
For the fourth quarter, new issuance was well beyond 2011 comparables. Issuers undertook 90 preferred sales during the quarter, raising $8.81 billion. In the same quarter of 2011, only 26 deals were done for proceeds of $2.83 billion.
Citigroup Global Markets Inc. was the top underwriter for the quarter, raising $2.76 billion in 12 transactions, for market share of 31.36%. Goldman Sachs & Co. was the runner-up, facilitating seven preferred offerings for $1.15 billion, or 13.07% of market share.
Issuance in December was about on par with 2011. All told, issuers took in $2.28 billion from 37 new deals. In 2011, December saw 20 deals get done for proceeds of $2.54 billion.
Citigroup was also the top underwriter of December, having participated in five deals for proceeds of $959 million, or 41.9% of market share. Bank of America was number two, raising $187 million in four offerings. That accounted for 8.15% of market share.
U.S. market, all issuers, Year to date
2011 Comparables
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
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| 1 | Bank of America | 5.442 | 94 | 13.12% | 2 | 2.387 | 37 | 11.70%
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| 2 | Wells Fargo | 5.116 | 52 | 12.33% | 4 | 1.424 | 32 | 6.98%
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| 3 | Citigroup | 4.972 | 39 | 11.99% | 6 | 0.898 | 18 | 4.40%
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| 4 | Goldman Sachs | 4.604 | 14 | 11.10% | 11 | 0.720 | 4 | 3.53%
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| 5 | Morgan Stanley | 4.499 | 43 | 10.85% | 3 | 1.446 | 19 | 7.09%
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| 6 | JPMorgan | 4.373 | 32 | 10.54% | 5 | 1.140 | 5 | 5.59%
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| 7 | UBS | 3.187 | 40 | 7.68% | 13 | 0.456 | 17 | 2.24%
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| 8 | Barclays | 1.080 | 15 | 2.60% | 10 | 0.765 | 5 | 3.75%
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| 9 | RBC | 0.898 | 19 | 2.16% | 17 | 0.058 | 3 | 0.28%
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| 10 | USB | 0.728 | 2 | 1.76% |
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| Total | 41.479 | 265 | 20.410 | 115 |
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| Average size: | 0.157 | 0.177 |
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| U.S. market, all issuers, fourth quarter |
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| | | | | 2011 Comparables |
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| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | Citigroup | 2.763 | 12 | 31.36% |
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| 2 | Goldman Sachs | 1.152 | 7 | 13.07% | 4 | 0.233 | 2 | 8.24%
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| 3 | Wells Fargo | 1.039 | 8 | 11.80% | 2 | 0.300 | 5 | 10.57%
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| 4 | Bank of America | 0.767 | 13 | 8.71% | 3 | 0.287 | 4 | 10.13%
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| 5 | Morgan Stanley | 0.564 | 7 | 6.40% |
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| 6 | UBS | 0.533 | 8 | 6.05% | 10 | 0.015 | 1 | 0.53%
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| 7 | JPMorgan | 0.393 | 6 | 4.46% |
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| 8 | RBC | 0.120 | 4 | 1.36% | 14 | 0.013 | 1 | 0.44%
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| 9 | BMO | 0.113 | 1 | 1.28% |
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| 10 | Sandler O'Neill | 0.101 | 3 | 1.15% |
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| Total | 8.811 | 90 | 2.833 | 26 |
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| Average size: | 0.098 | 0.109 |
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| U.S. market, all issuers, December |
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| | | | | 2011 Comparables |
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| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
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| 1 | Citigroup | 0.959 | 5 | 41.90% |
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| 2 | Bank of America | 0.187 | 4 | 8.15% | 4 | 0.233 | 2 | 9.20%
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| 3 | Morgan Stanley | 0.125 | 2 | 5.46% |
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| 3 | UBS | 0.125 | 2 | 5.46% |
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| 5 | Wells Fargo | 0.102 | 2 | 4.48% | 2 | 0.233 | 2 | 9.20%
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| 6 | RBC | 0.089 | 3 | 3.87% |
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| 7 | Goldman Sachs | 0.075 | 1 | 3.28% | 3 | 0.233 | 2 | 9.20%
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| 7 | SunTrust | 0.075 | 1 | 3.28% |
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| 9 | Raymond James | 0.017 | 1 | 0.74% |
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| 9 | Robert W. Baird | 0.017 | 1 | 0.74% |
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| 9 | Stifel Nicolaus | 0.017 | 1 | 0.74% |
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| Total | 2.289 | 37 | 2.537 | 20 |
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| Average size: | 0.062 | 0.120 |
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| Prospect News Preferred Stock Underwriter Rankings
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Criteria
• U.S. tables include all underwritten dollar-denominated offerings sold in the United States as public or Rule 144A deals reported to Prospect News.
• Convertibles are excluded.
• 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. For multiple leads, the total value is divided equally among joint bookrunners.
• The headquarters location of the parent company is used for the country criteria (i.e. registrations in tax havens and offshore finance subsidiaries are ignored)
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