Bank of America Merrill Lynch top U.S. market convertibles underwriter for year to date

• U.S. convertibles issuance reaches $10.96 billion for year to date

• July U.S. convertibles issuance totals only $201 million in two deals

By Rebecca Melvin

New York, July 31 - Bank of America Merrill Lynch unseated J.P. Morgan Securities LLC as top underwriter of convertible debt for the year to date through July, bringing $2.26 billion in 12 deals, or 20.6% of total issuance for the first seven months of 2012.

JPMorgan was the No. 2 underwriter of convertible debt with $1.96 billion in 14 deals for 18% of total volume; while Goldman Sachs & Co. was a close No. 3 with $1.82 billion in six deals for 16.6% of the total, according to Prospect News data.

Total volume for the first seven months of 2012 has fallen to below half of the pace for issuance in the same period of 2011, with $10.96 billion of new issuance in 38 deals, compared to $22.77 billion in 72 deals for the same period of 2011.

Goldman Sachs was the top underwriter for global new issuance with $3.03 billion in new issuance in 11 deals across the world, accounting for 13% of volume, followed on a worldwide basis by Bank of America, which was underwriter for $2.68 billion in 16 deals, accounting for 11.3% of volume.

Global issuance has also dropped off precipitously to $23.67 billion in 109 deals for the first seven months of 2012, compared to $43.47 billion in 163 deals for the same period of 2011.

For July alone, there were only two U.S. deals for $201 million of new issuance. Bank of America and Wells Fargo Securities LLC were both in the No. 1 slot, bringing $43 million, or 21.4%, of the total.

In July 2011, there was $3.2 billion in new issuance in 13 deals.

The July deals included Beazer Homes USA Inc.'s $100 million of three-year 7.5% tangible equity units, which was upsized from $75 million and sold via Credit Suisse Securities (USA) LLC, Goldman Sachs, Deutsche Bank Securities Inc. and UBS Securities LLC as joint bookrunners, with KKR Capital Markets LLC and Moelis & Co. LLC as co-managers.

The Atlanta-based homebuilder sold 4 million units at $25 per unit at the tight end of talk.

The other deal was Cal Dive International Inc.'s $75 million of 5% convertible senior notes due 2017 with a 20% initial conversion premium.

The Houston-based offshore oil and gas company sold the notes under Rule144A via Wells Fargo and Bank of America Merrill Lynch, with co-managers Nataxis Securities Americas LLC, Howard Weil Inc., Capital One Southcoast Inc., and Banco Bilbao Vizcaya Argentaria SA.

U.S. market, year to date

2011 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Bank of America	2.262	12	20.64%	5	2.284	18	10.03%
2	JPMorgan	1.964	14	17.91%	1	4.054	29	17.80%
3	Goldman Sachs	1.816	6	16.57%	2	3.978	16	17.47%
4	Morgan Stanley	1.045	8	9.53%	4	2.442	15	10.72%
5	Citigroup	0.945	8	8.62%	3	3.720	16	16.34%
6	Deutsche Bank	0.447	5	4.08%	8	0.833	12	3.66%
7	Barclays	0.443	4	4.04%	7	0.954	8	4.19%
8	ABG Sundal Collier	0.400	1	3.65%
9	Wells Fargo	0.396	7	3.61%	10	0.409	5	1.80%
10	UBS	0.253	4	2.31%	6	1.264	8	5.55%
	Total	10.961	38	22.773	72
	Average size:	0.288	0.316
Global, year to date
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	3.032	11	12.82%	2	5.318	21	12.23%
2	Bank of America	2.677	16	11.31%	6	2.638	20	6.07%
3	Credit Suisse	2.340	4	9.89%	8	1.571	15	3.61%
4	JPMorgan	2.208	16	9.33%	1	5.556	39	12.78%
5	Morgan Stanley	1.690	12	7.15%	5	3.868	20	8.90%
6	Deutsche Bank	1.545	16	6.53%	10	1.245	15	2.86%
7	Citigroup	1.479	13	6.25%	3	4.376	19	10.07%
8	Barclays	0.736	6	3.11%	9	1.499	12	3.45%
9	RBC	0.715	11	3.02%	13	0.826	15	1.90%
10	UBS	0.582	8	2.46%	7	1.644	12	3.78%
	Total	23.656	109	43.469	163
	Average size:	0.217	0.267
U.S. market, July
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Bank of America	0.043	1	21.43%	4	0.291	3	9.08%
1	Wells Fargo	0.043	1	21.43%
3	Credit Suisse	0.029	1	14.29%	10	0.060	1	1.87%
3	Deutsche Bank	0.029	1	14.29%	11	0.053	1	1.67%
3	Goldman Sachs	0.029	1	14.29%	5	0.250	2	7.81%
3	UBS	0.029	1	14.29%	3	0.311	2	9.71%
	Total	0.201	2	3.203	13
	Average size:	0.101	0.246
Prospect News Convertibles Underwriter Rankings

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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