U.S. PIPE issuance starts to rebound in July; Citigroup stays on top

Canaccord remains top placement agent in Canada year to date

By Stephanie N. Rotondo

Phoenix, July 31 - U.S. PIPE issuance for the year thus far remained behind year-ago comparables, but July's figures started to outpace those seen in 2011, according to data compiled by Prospect News.

For the year, total issuance was $9.53 billion via 472 private placements. By this time in 2011, $10.12 billion had been raised from 552 private offerings.

In July, however, dollars raise topped 2011 numbers, though it was done so via a smaller number of deals. Issuers took in $816 million from 48 PIPE transactions, versus $572 million raised in 63 sales in July 2011.

Direct placements meantime remained above 2011 levels, as issuers sought $1.13 billion in funds from 55 registered transactions. That compared to $817 million taken in during the previous year via 62 direct placements.

For the year, Citigroup Inc. remained the top agent, having facilitated two PIPE deals for proceeds of $187 million. Rodman & Renshaw also held on to its position as top agent for registered direct offerings, raising $70 million from 14 placements.

In July, Jefferies & Co. and JMP Securities tied for the number one spot. The two agents jointly facilitated a $27 million offering of common stock for AP Pharma Inc.

While U.S. PIPE issuance was attempting to rebound, Canadian issuance continued to lag.

For the year, total issuance was C$4.11 billion from 511 transactions as of July 31. That compared to C$5.7 billion raised from 836 deals for the same time period of 2011.

In July, issuers took in C$463 million from 61 private placements, versus C$614 million from 109 deals the year before.

Canaccord held on to its position as the year's top agent for Canadian issuers. The firm has raised C$167 million from 18 transactions.

Like the U.S. market in July, the top Canadian agent for July was a two-way tie between PI Financial and StoneCap. Both agents facilitated C$20 million deals. For PI, it was a sale of subscription receipts for Tallgrass Energy Corp. For StoneCap, it was an offering if 12% convertible unsecured debentures and units due July 31, 2016 for Cancen Oil Canada Inc.

U.S. market, year to date

2011 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	0.187	2	1.97%
2	Cowen	0.152	6	1.60%
3	Evercore	0.140	1	1.47%
4	MLV	0.134	6	1.40%
5	JMP	0.073	5	0.77%	24	0.015	1	0.15%
6	Keefe Bruyette & Woods	0.045	2	0.47%
7	Halcyon Cabot	0.040	1	0.42%
7	Capital Path	0.037	2	0.39%
9	Cantor Fitzgerald	0.037	2	0.39%
10	Stifel Nicolaus	0.037	2	0.39%
	Total	9.526	472	10.123	552
	Average size:	0.020	0.018
U.S. direct placements, year to date
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Rodman & Renshaw	0.070	14	6.16%	2	0.192	16	23.51%
2	Lazard	0.060	3	5.36%	9	0.019	1	2.33%
3	Ladenburg Thalmann	0.032	5	2.79%	4	0.055	1	6.74%
4	Roth	0.020	5	1.77%	3	0.102	4	12.54%
5	Stifel Nicolaus	0.018	1	1.55%
6	Aegis	0.017	4	1.53%	22	0.003	1	0.41%
7	RS Platou	0.013	1	1.20%
7	Evercore	0.013	1	1.20%
9	Chardan	0.011	2	1.01%	7	0.023	5	2.76%
10	Canaccord Genuity	0.007	1	0.58%
	Total	1.129	55	0.817	62
	Average size:	0.021	0.013
Canadian market, year to date
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Canaccord	0.167	18	4.07%	4	0.269	29	4.72%
2	Cormark	0.144	12	3.51%	7	0.163	13	2.86%
3	Dundee	0.138	14	3.35%	5	0.227	29	3.98%
4	GMP	0.080	6	1.96%	3	0.290	18	5.09%
5	Clarus	0.074	3	1.79%	25	0.031	2	0.54%
6	Macquarie	0.063	8	1.54%	12	0.061	14	1.07%
7	Casimir	0.063	8	1.54%	14	0.058	11	1.02%
7	Haywood	0.061	6	1.49%	23	0.038	9	0.66%
9	Raymond James	0.058	6	1.42%	15	0.058	7	1.01%
10	RBC	0.044	4	1.06%	31	0.023	4	0.41%
	Total	4.106	591	5.702	836
	Average size:	0.007	0.007
U.S. market, July
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Jefferies	0.027	1	3.28%
2	JMP	0.027	1	3.28%
3	Financial West	0.020	1	2.45%
4	Capital Path	0.018	1	2.15%
5	Merriman	0.015	1	1.84%	9	0.007	1	1.21%
6	Gilford	0.006	1	0.76%
7	Chardan	0.006	1	0.69%
8	Black Diamond Financial	0.004	1	0.55%
9	BTIG	0.003	1	0.37%
10	Euro Pacific	0.003	1	0.37%
	Total	0.816	48	0.572	63
	Average size:	0.017	0.009
Canadian market, July
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	PI Financial	0.020	1	4.32%	12	0.008	1	1.32%
2	Stonecap	0.020	1	4.32%
3	Raymond James	0.015	1	3.33%
4	Bayfront	0.010	1	2.16%	8	0.010	2	1.68%
5	Macquarie Private Wealth	0.008	2	1.83%
6	Industrial Alliance	0.005	3	1.14%
7	Renaissance	0.005	1	1.08%
8	Odeon	0.004	1	0.86%
9	Ocean Equities	0.001	1	0.16%
10	Cormark	0.001	1	0.16%
	Total	0.463	61	0.614	109
	Average size:	0.008	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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