U.S., Canada see lag in PIPE issuance; MLV sweeps U.S. market, wins top placement agent spot

• Canaccord year's biggest PIPE agent in Canada

By Stephanie N. Rotondo

Phoenix, Dec. 31 - U.S. PIPE issuance was down in 2012 compared to 2011 issuance, according to data compiled by Prospect News.

For the year, 804 PIPE transactions were done, raising proceeds of $17.68 billion. That compared to 899 deals done in 2011, for proceeds of $21.83 billion.

However, direct placements saw an uptick. For the year, total registered direct offerings came to 79, which was on pace with 2011. But the proceeds raised in 2012 equaled $1.5 billion, versus $1 billion the previous year.

The top placement agent for the year was MLV & Co. The firm facilitated six PIPE deals, bringing in $244 million. Rodman & Renshaw meantime held on to its number one spot as the top bringer of direct placements, raising $81 million via 16 offerings.

For its part, MLV also took the top spot for the fourth quarter and the month of December. In the quarter, the company generated $155 million from two deals.

Both of those deals occurred in December.

As for total quarterly issuance, issuers raised more money in the final quarter of 2012 than they did in 2011, though they did so in fewer deals. Total dollars raised in the fourth quarter of 2012 was $5.28 billion, versus $3.75 billion in 2011. Issuers launched 182 deals in the quarter, which compared to 206 done in 2011.

The quarter's trend was also seen in the month of December. Issuers took in $3.06 billion during the month from 60 offerings. In December 2011, issuers raised only $1.42 billion from 76 deals.

Canadian PIPE issuance year to date was also lagging behind year-ago comparables. Total issuance was C$6.89 billion from 1,017 PIPEs sales. That compared to C$8.57 billion raised from 1,336 deals in 2011.

But like U.S. PIPE issuance, the fourth quarter and December were seeing more funds raised from fewer transactions.

In the quarter, C$2.14 billion was taken in from 265 deals, compared to C$1.86 billion raised from 368 private sales the year before. For the month, total proceeds came to C$695 million from 77 deals, versus C$370 million raised from 107 placements in 2011.

Canaccord took the year's number one position as the top placement agent in Canada. The company undertook 32 transactions, generating proceeds of C$210 million.

RBC Capital Markets LLC was number one for the quarter, having facilitated five deals for proceeds of C$122 million.

And, rounding out the list, Mackie reigned in December with its C$80 million sale of common stock for Monument Mining Ltd.

U.S. market, year to date

2011 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	MLV	0.244	6	1.38%
2	Citigroup	0.187	2	1.06%
3	Cowen	0.173	7	0.98%	12	0.042	2	0.19%
4	Moelis	0.168	1	0.95%
5	P-Wave Holdings	0.150	1	0.85%
6	Evercore	0.140	1	0.79%
7	JMP	0.101	6	0.57%	29	0.015	1	0.07%
8	Sandler O'Neill	0.097	3	0.55%
8	Financial West Group	0.095	3	0.54%	102	0.001	1	0.01%
10	FBR Capital Markets	0.085	1	0.48%
	Total	17.677	804	21.828	899
	Average size:	0.022	0.024
U.S. direct placements, year to date
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Rodman & Renshaw	0.081	16	5.42%	2	0.217	19	21.72%
2	Lazard	0.067	4	4.47%	8	0.024	2	2.40%
3	Roth	0.042	10	2.81%	3	0.117	7	11.73%
4	Ladenburg Thalmann	0.037	6	2.44%	4	0.057	2	5.67%
5	Aegis	0.026	6	1.76%	26	0.003	1	0.33%
6	Chardan	0.022	3	1.46%	9	0.023	5	2.26%
7	KBW	0.019	1	1.28%
8	Stifel Nicolaus	0.018	1	1.17%
8	RS Platou	0.013	1	0.90%
10	Evercore	0.013	1	0.90%
	Total	1.499	79	1.000	79
	Average size:	0.019	0.013
Canadian market, year to date
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Canaccord	0.210	32	3.05%	5	0.319	40	3.73%
2	RBC	0.207	12	3.00%	15	0.064	6	0.75%
3	Dundee	0.196	23	2.84%	6	0.268	35	3.12%
4	Cormark	0.191	18	2.77%	3	0.381	21	4.44%
5	GMP	0.125	10	1.81%	4	0.334	22	3.90%
6	Mackie	0.108	6	1.57%	8	0.136	5	1.58%
7	Casimir	0.088	18	1.28%	20	0.058	11	0.68%
8	Haywood	0.082	9	1.19%	18	0.059	14	0.69%
8	National Bank Financial	0.080	14	1.17%	33	0.031	6	0.36%
10	Clarus	0.074	4	1.07%	14	0.065	5	0.76%
	Total	6.887	1017	8.572	1336
	Average size:	0.007	0.006
U.S. market, fourth quarter
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	MLV	0.155	2	2.94%
2	Financial West Group	0.080	2	1.52%	28	0.001	1	0.03%
3	SunTrust	0.070	1	1.33%
4	Jefferies	0.036	2	0.69%
5	Cowen	0.036	2	0.69%	3	0.042	2	1.13%
6	Sandler O'Neill	0.034	1	0.65%
7	Cantor Fitzgerald	0.030	1	0.57%
8	JMP	0.028	1	0.53%
8	FIG Partners	0.024	2	0.45%
10	Lazard	0.022	1	0.42%
	Total	5.279	182	3.751	206
	Average size:	0.029	0.018
U.S. market, December
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
2	MLV	0.155	2	5.06%
3	Financial West Group	0.035	1	1.14%	14	0.001	1	0.08%
4	Jefferies	0.028	1	0.92%
5	Cowen	0.028	1	0.92%	2	0.040	1	2.80%
6	JMP	0.028	1	0.92%
7	Lazard	0.022	1	0.72%
8	GMP	0.010	1	0.33%
9	Taglich	0.006	1	0.21%
10	Ladenburg Thalmann	0.006	1	0.20%
11	Craig-Hallum	0.006	1	0.19%
	Total	3.062	60	1.419	76
	Average size:	0.051	0.019
Canadian market, fourth quarter
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	RBC	0.122	5	5.73%	5	0.041	2	2.20%
2	Mackie	0.083	3	3.89%
3	GMP	0.041	3	1.91%	4	0.044	4	2.36%
4	Dundee	0.037	5	1.74%	10	0.024	4	1.28%
5	National Bank Financial	0.037	2	1.73%	9	0.026	5	1.40%
6	Cormark	0.035	4	1.65%	3	0.178	6	9.56%
7	Euro Pacific	0.025	1	1.17%	22	0.008	1	0.42%
8	Casimir	0.025	10	1.15%
8	Haywood	0.021	3	0.98%	11	0.021	5	1.14%
10	Scotia	0.017	2	0.81%
	Total	2.135	265	1.861	368
	Average size:	0.008	0.005
Canadian market, December
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Mackie	0.080	1	11.52%	5.55%
2	Dundee	0.031	3	4.47%	6.18%
3	Euro Pacific Canada	0.005	1	0.72%	2.31%
4	Laurentian	0.005	3	0.69%
5	Casimir	0.004	4	0.62%
6	IBK Capital	0.003	2	0.43%
7	Marquest Asset Management	0.002	2	0.22%
8	Marquest Capital	0.003	2	0.41%	1.43%
9	Mongolian Investment Banking Group	0.001	1	0.14%	3.66%
10	Portfolio Strategies	0.001	1	0.14%	3.66%
	Total	0.695	77	0.370	107
	Average size:	0.009	0.003
Prospect News PIPE Agent Rankings

Criteria

• The tables include all dollar-denominated offerings (or Canadian dollar-denominated offerings for the Canadian tables) sold as private placements, excluding Rule 144A deals, or direct placements.

• Stock must be listed on a U.S. exchange or trade on the Bulletin Board or Pink Sheets (U.S. issues).

• Offerings are included in the time period in which they price, if known, otherwise by settlement date or announcement date.

• Amounts are based on the total sales price (face amount or number of shares multiplied by the offering price).

• Each tranche is counted as a separate deal.

• Includes stock, securities convertible into stock, units of these securities and equity lines of credit.

• Minimum issue size $1 million (all tranches combined) or C$1 million.

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