• U.S. convertibles issuance totals $175 million for February
By Rebecca Melvin
New York, Feb. 29 - J.P. Morgan Securities LLC remained top underwriter of convertible bonds for the year to date, having brought $258 million in three deals, accounting for 45% of the total for the year so far. That compared to $1.17 billion in new paper brought by JPMorgan in six deals for the first two months of 2011, according to data compiled by Prospect News.
Bank of America Merrill Lynch was the No. 2 convertibles underwriter for the year to date, with $125 million of new issuance in one deal, accounting for 22% of the total.
Citigroup Global Markets Inc. took the third slot with just $75 million of new issuance in one deal, accounting for 13% of total issuance.
Barclays Capital Inc. and Wells Fargo Securities LLC were next on the list, each with $58 million, both accounting for 10%.
Total U.S. convertibles issuance for the year to date was $575 million in three deals, a total which was languishing compared to 2011's year-to-date period when $3.57 billion in new issuance in 14 deals priced.
Globally, there was $3.28 billion of new paper in 18 deals for 2012 so far. The lead underwriter on that list was Deutsche Bank AG, accounting for $389 million of the total in four deals, for a 12% share.
Back in the United States, February brought only one new deal, which was an upsized $175 million offering of five-year convertibles issued by DealerTrack Holdings Inc. on Feb. 28 and underwritten by Barclays Capital, JPMorgan Wells Fargo.
Co-managers were Cowen & Co., Craig-Hallum Capital Group, Evercore Partners, KeyBanc Capital Markets LLC and JMP Securities LLC.
There was also a deal on tap for late Feb. 29 from Stone Energy Corp. for $250 million of five-year convertible notes that were talked to yield 1.75% to 2.25% with an initial conversion premium of 25% to 30%. Stone Energy's joint bookrunners were Barclays Capital and Bank of America Merrill Lynch.
Both deals were done under Rule 144A.
DealerTrack is a Lake Success, N.Y.-based automotive retail software services company.
Stone Energy is an independent oil and natural gas exploration and development company based in Lafayette, La.
U.S. market, year to date
2011 Comparables
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | JPMorgan | 0.258 | 3 | 44.93% | 1 | 1.174 | 6 | 32.87%
|
| 2 | Bank of America | 0.125 | 1 | 21.74% | 6 | 0.247 | 2 | 6.92%
|
| 3 | Citigroup | 0.075 | 1 | 13.04% | 2 | 0.698 | 5 | 19.54%
|
| 4 | Barclays | 0.058 | 1 | 10.14% | 8 | 0.100 | 1 | 2.80%
|
| 5 | Wells Fargo | 0.058 | 1 | 10.14% | 7 | 0.144 | 1 | 4.03%
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| Total | 0.575 | 3 | 3.571 | 14 |
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| Average size: | 0.192 | 0.255 |
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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
|
| 1 | Deutsche Bank | 0.389 | 4 | 11.87% | 6 | 0.471 | 4 | 4.38%
|
| 2 | JPMorgan | 0.383 | 4 | 11.70% | 2 | 1.412 | 8 | 13.13%
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| 3 | Citigroup | 0.350 | 3 | 10.68% | 4 | 0.885 | 6 | 8.23%
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| 4 | DBS | 0.210 | 2 | 6.41% |
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| 5 | HSBC | 0.186 | 2 | 5.68% |
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| 6 | SG | 0.182 | 1 | 5.55% | 16 | 0.121 | 1 | 1.13%
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| 7 | Standard Bank | 0.175 | 1 | 5.34% |
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| 8 | RBC | 0.150 | 2 | 4.59% | 9 | 0.245 | 4 | 2.28%
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| 9 | Bank of America | 0.125 | 1 | 3.81% | 8 | 0.247 | 2 | 2.30%
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| 10 | Arctic Securities | 0.083 | 1 | 2.54% |
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| Total | 3.277 | 18 | 10.756 | 34 |
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| Average size: | 0.182 | 0.316 |
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| U.S. market, February |
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| | | | | 2011 Comparables |
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| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | Barclays | 0.058 | 1 | 33.33% |
|
| 1 | JPMorgan | 0.058 | 1 | 33.33% | 3 | 0.132 | 2 | 11.86%
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| 1 | Wells Fargo | 0.058 | 1 | 33.33% |
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| Total | 0.175 | 1 | 1.115 | 6 |
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| Average size: | 0.175 | 0.186 |
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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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