• U.S. convertibles issuance totals $4.38 billion for January
By Rebecca Melvin
New York, Jan. 31 - Goldman Sachs & Co. was on top of the convertibles issuance league tables for January, bringing $923 million in four deals, or 21% of total new issuance for the first month of the year, according to data compiled by Prospect News.
Bank of America Merrill Lynch was the No. 2 convertibles underwriter for January, with $900 million in three deals, or 20.5% of the total. Bank of America logged a much higher tally in January 2013 than it did in January 2012, when it priced only $125 million of new issuance, in one deal. But there was only $400 million in issuance for this month, so Bank of America's one deal accounted for 31% of the total.
Deutsche Bank Securities Inc. took the third slot with $787 million of new issuance in three deals, accounting for 18% of total issuance.
Credit Agricole CIB was fourth with $562 million in issuance, and J.P. Morgan Securities LLC, which typically sits atop the chart, came in fifth, with just $310 million in new issuance in three deals for 7% of the total.
Rounding out the top 10 underwriters of U.S. issuance were Jefferies & Co., Citigroup Global Markets Inc., ABG Sundal Collier, BMO Capital Markets Corp. and Morgan Stanley & Co. LLC.
In total there was $4.38 billion in 12 deals for the first month of the year in U.S. issuance.
Globally, there was $10.68 billion of new paper in 24 deals, which was a vast improvement from $1.27 billion in new issuance in six deals for January 2012.
The lead underwriter globally was Deutsche Bank AG, accounting for $2.4 billion of the total in eight deals, for a 22.5% share. Goldman Sachs was the No. 2 global underwriter with $1.14 billion in six deals, accounting for 10.7% of global issuance.
Among notable U.S. deals in the past month were KB Home's upsized $200 million of 1.375% convertibles, which priced last week via Credit Suisse Securities (USA) LLC, Citigroup Global Markets, Bank of America Merrill Lynch and Deutsche Bank Securities as joint bookrunners, and Auxilium Pharmaceuticals Inc.'s upsized $325 million of 5.5-year convertible senior notes via joint bookrunners Goldman Sachs and JPMorgan.
InterMune Inc. priced an upsized $105 million of five-year convertible bonds earlier this month at par to yield 2.5% with an initial conversion premium of 30%. Goldman Sachs and JPMorgan were the joint bookrunners.
Theravance Inc. priced $250 million of 10-year convertible subordinated notes at par to yield 2.125% with an initial conversion premium of 32.5% via bookrunner Bank of America Merrill Lynch.
And the outsized deal of the month was ArcelorMittal SA's upsized $2.25 billion of three-year mandatory convertible subordinated notes to yield 6% and with an initial conversion premium of 25%.
The registered, off-the-shelf deal was initially talked at $1.75 billion in size and was priced by joint bookrunners Goldman Sachs, acting as sole global coordinator of the notes, Bank of America Merrill Lynch, Credit Agricole, and Deutsche Bank in London.
U.S. market, year to date
2012 Comparables
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
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| 1 | Goldman Sachs | 0.923 | 4 | 21.05% |
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| 2 | Bank of America | 0.900 | 3 | 20.53% | 2 | 0.125 | 1 | 31.25%
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| 3 | Deutsche Bank | 0.787 | 3 | 17.96% |
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| 4 | Credit Agricole | 0.562 | 1 | 12.83% |
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| 5 | JPMorgan | 0.310 | 3 | 7.08% | 1 | 0.200 | 2 | 50.00%
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| 6 | Jefferies | 0.235 | 2 | 5.36% |
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| 7 | Citigroup | 0.175 | 2 | 3.99% | 3 | 0.075 | 1 | 18.75%
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| 8 | ABG Sundal Collier | 0.175 | 1 | 3.99% |
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| 9 | BMO | 0.125 | 1 | 2.85% |
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| 10 | Morgan Stanley | 0.075 | 1 | 1.71% |
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| Total | 4.384 | 12 | 0.400 | 2 |
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| Average size: | 0.365 | 0.200 |
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| Global, year to date |
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| | | | | 2012 Comparables |
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| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
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| 1 | Deutsche Bank | 2.402 | 8 | 22.48% | 1 | 0.235 | 2 | 18.51%
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| 2 | Goldman Sachs | 1.141 | 6 | 10.68% |
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| 3 | Bank of America | 1.118 | 5 | 10.47% | 6 | 0.125 | 1 | 9.85%
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| 4 | UBS | 0.820 | 3 | 7.68% | 7 | 0.060 | 1 | 4.73%
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| 5 | BNP | 0.617 | 4 | 5.77% |
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| 6 | Credit Agricole | 0.562 | 1 | 5.26% |
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| 7 | Morgan Stanley | 0.491 | 2 | 4.59% |
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| 8 | Citigroup | 0.487 | 4 | 4.56% | 2 | 0.225 | 2 | 17.72%
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| 9 | Barclays | 0.476 | 2 | 4.45% |
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| 10 | Mediobanca | 0.473 | 2 | 4.43% |
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| Total | 10.684 | 24 | 1.270 | 6 |
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| Average size: | 0.445 | 0.212 |
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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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