JPMorgan top U.S. market convertibles underwriter for year to date

• U.S. convertibles issuance reaches $15.78 billion for year to date

• September U.S. convertibles issuance $2.85 billion in 14 deals

By Rebecca Melvin

New York, Sept. 28 - J.P. Morgan Securities LLC remained top underwriter of convertible debt for the year to date through September, bringing $3.18 billion in 25 deals, or 20% of total issuance for the first nine months of 2012, according to Prospect News data.

Bank of America Merrill Lynch remained the No. 2 underwriter of convertible debt with $2.49 billion in 16 deals for 16% of total volume; while Goldman Sachs & Co. stayed at No. 3 with $2.38 billion in nine deals for 15% of the total.

Total volume for the first nine months of 2012 is $15.78 billion of new issuance in 60 deals, which is 30% below the comparable period of 2011. But that represents an improvement from August's year-to-date total when issuance was only 50% of 2011's comparable period.

In terms of global new issuance, JPMorgan unseated Goldman Sachs as the top underwriter for deals worldwide, with $3.92 billion in new issuance in 31 deals, accounting for 10.95% of volume, followed closely by the former No. 1 underwriter, Goldman Sachs, which brought $3.91 billion in 17 deals, accounting for 10.92% of volume.

Total global issuance has dropped off this year to $35.83 billion in 159 deals for the first nine months of 2012, compared to $45.87 billion in 174 deals for the same period of 2011.

Back in the United States, for the third quarter alone, total issuance stands at $5.02 billion in 24 deals, compared to $3.36 billion in 14 deals for the 2011 third quarter.

For August alone, U.S. issuance picked up significantly to $2.85 billion in 14 deals, compared to $1.71 billion in seven deals in August and $155 million in one deal for September 2011.

Notable deals this past month included Jarden Corp.'s very well-received $500 million of six-year 1.875% convertible senior notes with a 34% initial conversion premium, brought by bookrunners Barclays and JPMorgan.

Jarden is a Rye, N.Y.-based consumer products company with a $4 billion market cap.

In addition to a few homebuilders that came to market, including Toll Brothers Inc., and Meritage Homes Corp.'s $126.5 million issue of 1.875% convertibles, and K. Hovnanian Enterprises Inc.'s $90 million of 6% convertibles, a variety of companies in other sectors also priced. They included Sequenom Inc., a San Diego-based provider of genetic analysis products; Sanchez Energy Corp., a Houston-based oil and natural gas exploration and development company; Genesee & Wyoming Inc. a Greenwich, Conn.-based owner and operator of short line and regional freight railroads, and Ctrip.com International Ltd., a Chinese travel services provider.

This past week, GT Advanced Technologies Inc., a Merrimack, N.H.-based provider of solar and LED equipment and services, brought $205 million of five year convertible bonds to yield 3% with a 30% premium.

U.S. market, year to date

2011 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	3.179	25	20.16%	1	4.132	30	18.02%
2	Bank of America	2.492	16	15.80%	5	2.284	18	9.96%
3	Goldman Sachs	2.377	9	15.07%	2	4.056	17	17.69%
4	Citigroup	1.459	15	9.25%	3	3.720	16	16.23%
5	Barclays	1.304	9	8.27%	7	0.954	8	4.16%
6	Morgan Stanley	1.294	10	8.20%	4	2.442	15	10.65%
7	Deutsche Bank	0.604	8	3.83%	8	0.833	12	3.63%
8	Credit Suisse	0.581	6	3.68%	9	0.712	7	3.11%
9	Wells Fargo	0.496	8	3.14%	10	0.409	5	1.79%
10	ABG Sundal Collier	0.400	1	2.54%
	Total	15.775	60	22.928	73
	Average size:	0.263	0.314
Global, year to date
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	3.921	31	10.95%	1	5.696	41	12.42%
2	Goldman Sachs	3.913	17	10.92%	2	5.605	23	12.22%
3	Bank of America	3.174	22	8.86%	6	2.701	21	5.89%
4	Credit Suisse	3.131	12	8.74%	8	1.571	15	3.42%
5	Morgan Stanley	2.377	18	6.63%	5	3.868	20	8.43%
6	Deutsche Bank	2.373	23	6.62%	10	1.307	16	2.85%
7	Citigroup	2.330	22	6.50%	3	4.438	20	9.68%
8	Barclays	1.974	15	5.51%	9	1.562	13	3.40%
9	BNP	0.981	7	2.74%	11	1.150	9	2.51%
10	RBC	0.977	13	2.73%	12	0.989	18	2.16%
	Total	35.826	159	45.871	174
	Average size:	0.225	0.264
U.S. market, third quarter
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	1.216	11	24.25%	2	0.563	4	16.78%
2	Barclays	0.861	5	17.17%	9	0.087	1	2.61%
3	Goldman Sachs	0.590	4	11.76%	3	0.328	3	9.76%
4	Citigroup	0.514	7	10.25%	6	0.230	2	6.85%
5	Credit Suisse	0.397	5	7.92%	10	0.060	1	1.79%
6	Bank of America	0.273	5	5.44%	5	0.291	3	8.66%
7	Morgan Stanley	0.249	2	4.96%	1	1.181	6	35.17%
8	Deutsche Bank	0.185	4	3.70%	11	0.053	1	1.59%
9	RBC	0.150	1	2.99%
10	Wells Fargo	0.143	2	2.85%
	Total	5.015	24	3.358	14
	Average size:	0.209	0.240
U.S. market, September
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	0.652	7	22.88%	1	0.078	1	50.00%
2	Barclays	0.565	3	19.83%
3	Citigroup	0.451	6	15.81%
4	Goldman Sachs	0.210	1	7.38%	1	0.078	1	50.00%
5	Bank of America	0.167	3	5.85%
6	Deutsche Bank	0.157	3	5.50%
7	RBC	0.150	1	5.26%
8	Jefferies	0.107	2	3.74%
9	Raymond James	0.100	1	3.51%
10	Credit Suisse	0.098	2	3.45%
	Total	2.849	14	0.155	1
	Average size:	0.204	0.155
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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