U.S., Canadian PIPE issuance falls behind 2011 pace

• MLV takes top agent spot for U.S. PIPE issuance for year to date

• Cormark number one agent for Canadian PIPE issuance year to date

By Stephanie N. Rotondo

Portland, Ore., April 30 - U.S. PIPE issuance began to lag behind 2011 levels in April, according to data compiled by Prospect News.

For the year thus far, issuers have taken in about $6.23 billion in 264 transactions. By this time in 2011, issuers had raised $6.72 billion in 312 private institutional placements.

Direct placements were also lower, but barely so. A total of 37 registered direct offering have taken place this year, bringing in proceeds of $528 million. That compares to 44 offerings done in 2011, for total proceeds of $537 million.

April transactions were well behind year-ago comparables. Issuers took in $716 million via 49 deals during the month, versus $2.11 billion raised via 81 private sales.

MLV won the top placement agent spot for the year to date through April. The firm has raised $114 million via five transactions. Rodman & Renshaw meantime held on to the top direct placement agent spot, facilitating 14 deals for proceeds of $70 million.

For April, Keefe, Bruyette & Woods placed number one with its $26 million placement of common stock for Pacific Mercantile Bancorp. Deutsche Bank was a close second with its $25 million sale of 7% convertible senior unsecured notes due 2017 for American Superconductor Corp.

The Canadian PIPE market was also falling behind 2011 figures. For the year, issuers have brought in C$2.16 billion in 333 private sales, versus C$3.73 billion raised in 493 deals the year before. Monthly totals were also weaker, with C$344 million generated from 66 transactions, compared to C$729 million from 127 offerings in April 2011.

For the year to date, Cormark took the top agent spot for Canada. The company has raised C$103 million in seven transactions.

GMP meantime dominated the month with its C$25 million offering of subscription receipts for Pacific Wildcat Resources Corp.

U.S. market, year to date

2011 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	MLV	0.114	5	1.71%
2	Cowen	0.087	3	1.31%
3	Cantor Fitzgerald	0.037	2	0.57%
3	JMP	0.037	2	0.56%	15	0.015	1	0.22%
3	Stifel Nicolaus	0.037	2	0.56%
6	Houlihan Lokey	0.035	1	0.52%
7	Rodman & Renshaw	0.032	4	0.49%	7	0.038	7	0.57%
8	Craig-Hallum	0.025	2	0.37%
8	Deutsche Bank	0.025	1	0.38%
10	Bank of America	0.022	2	0.34%
	Total	6.628	264	6.722	312
	Average size:	0.025	0.022
U.S. direct placements, year to date
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Rodman & Renshaw	0.070	14	13.18%	1	0.149	13	27.73%
2	Lazard	0.050	2	9.56%	8	0.019	1	3.54%
3	Ladenburg Thalmann	0.028	4	5.31%
4	Stifel Nicolaus	0.018	1	3.32%
5	RS Platou	0.013	1	2.56%
6	Evercore	0.013	1	2.56%
7	Roth	0.012	3	2.32%	2	0.097	3	18.12%
8	Aegis	0.009	2	1.62%
9	Chardan	0.006	1	1.09%	6	0.023	5	4.21%
10	T.R. Winston	0.005	1	0.99%
	Total	0.528	37	0.537	44
	Average size:	0.014	0.012
Canadian market, year to date
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Cormark	0.103	7	4.78%	7	0.120	11	3.21%
2	Dundee	0.098	6	4.55%	5	0.215	25	5.77%
3	Clarus Securities	0.065	2	3.01%
4	Haywood	0.061	6	2.83%	27	0.021	3	0.57%
5	GMP	0.053	3	2.48%	3	0.269	15	7.20%
6	Macquarie	0.051	6	2.35%	12	0.051	9	1.36%
7	Canaccord	0.044	10	2.03%	4	0.235	23	6.29%
8	Casimir	0.042	6	1.96%	16	0.046	7	1.23%
9	Peters	0.041	2	1.89%	14	0.047	1	1.27%
10	Primary Capital	0.039	5	1.81%	28	0.020	2	0.54%
	Total	2.159	333	3.731	493
	Average size:	0.006	0.000
U.S. market, April
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Keefe Bruyette & Woods	0.026	1	3.67%
2	Deutsche Bank	0.025	1	3.49%
3	Maxim	0.020	1	2.79%
4	Canaccord	0.020	1	2.79%
5	Non-brokered	0.018	3	2.58%	2	0.076	1	3.60%
6	Oppenheimer	0.011	1	1.54%
7	Wunderlich Securities	0.007	1	0.99%
8	Rodman & Renshaw	0.003	1	0.44%	3	0.014	2	0.68%
	Total	0.716	49	2.106	81
	Average size:	0.015	0.026
Canadian market, April
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	GMP	0.025	1	7.26%	7	0.026	2	3.59%
2	Cormark	0.013	2	3.63%	4	0.062	6	8.44%
3	National Bank Financial	0.012	4	3.40%
4	Byron	0.011	2	3.32%
5	Bloom Burton	0.010	1	2.91%
6	Laurentian	0.010	2	2.83%
7	Octagon	0.009	1	2.66%
8	Canaccord	0.006	2	1.62%	9	0.023	3	3.16%
9	NCP Northland	0.005	1	1.45%	27	0.003	2	0.37%
10	Desjardins	0.004	2	1.28%	8	0.025	1	3.43%
	Total	0.344	66	0.729	127
	Average size:	0.005	0.006
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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