Goldman Sachs top U.S. market convertibles underwriter year to date

• U.S. convertibles issuance stands at $35.92 billion year to date

• October U.S. convertibles issuance totals $6.08 billion in 14 deals

By Rebecca Melvin

New York, Oct. 31 - Goldman Sachs & Co. was top underwriter of convertible debt for the year to date through October, bringing $6.18 billion in 30 deals, or 17% of total issuance for the first 10 months of 2013, according to Prospect News data.

J.P. Morgan Securities LLC was the No. 2 underwriter of convertible debt with $5.40 billion in 42 deals for 15% of total volume; and Morgan Stanley & Co. LLC was No. 3 with $4.46 billion in 37 deals, for 12% of the total. BofA Merrill Lynch was in fourth place.

Total U.S. volume for the first 10 months of 2013 is $35.92 billion of new issuance in 114 deals, which is 95% higher compared to the same period of 2012, when $18.45 billion in new issuance was priced in 67 deals.

Worldwide, JPMorgan was the top underwriter for global new issuance, with $9.37 billion in 62 deals, accounting for 13% of volume, followed distantly by Goldman Sachs, which was underwriter for $6.83 billion in 39 deals for nearly 10% of the total, and then Morgan Stanley, which brought $6.14 billion in 46 deals for almost 9% of volume.

Total global issuance is also up significantly for the year to date at $71.39 billion in 231 deals for the first 10 months of 2014, compared to $40.10 billion in 179 deals for the same period of 2012.

Back in the United States, total issuance for October was $6.08 billion in 14 deals, which was higher compared to $2.67 billion in eight deals for October 2012. Goldman Sachs topped the league tables for U.S. issuance in October with four deals totaling $1.76 billion for 29% of volume.

Notable October deals included BioMarin Pharmaceutical Inc.'s upsized $680 million of convertible senior subordinated notes in two equally divided tranches priced Oct. 8; Ctrip.com International Ltd.'s upsized $700 million of five-year convertible senior notes priced Oct. 9; Liberty Media Corp.'s $900 million of 1.375% 10-year convertible senior notes, priced Oct. 11; SolarCity Corp.'s upsized $200 million of five-year convertible senior notes priced Oct. 15; SanDisk Corp.'s upsized $1.3 billion of seven-year convertible senior notes priced Oct. 23 to yield 0.5%, and Crown Castle International Corp.'s upsized $850 million of mandatory convertible preferred stock also priced Oct. 23.

Most of these deals did extremely well in trading in the aftermarket. A notable exception was NQ Mobile Inc.'s $150 million of five-year convertible senior notes, which priced at par to yield 4% and within the month fell to 30 bid after Muddy Waters Research published allegations of fraud committed by the provider of mobile internet services, which has dual headquarters in Dallas and Beijing.

NQ Mobile's deal was sold via Morgan Stanley & Co. International plc and Deutsche Bank Securities Inc. BioMarin's deal was brought by BofA Merrill Lynch, Goldman Sachs, JPMorgan and Morgan Stanley; Ctrip.com was priced via JPMorgan; Liberty Media was brought by a slew of bookrunners including Citigroup Global Markets Inc., Morgan Stanley; JPMorgan, BofA Merrill Lynch, Barclays, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Credit Suisse, Deutsche Bank, RBC Capital Markets, LLC, RBS Securities Inc. and Wells Fargo Securities, LLC.

Meanwhile, SolarCity's deal was brought by Goldman Sachs, Credit Suisse and BofA Merrill Lynch; Goldman Sachs was bookrunner of the SanDisk deal; and Crown Castle was sold via Morgan Stanley, BofA Merrill Lynch, JPMorgan and Barclays.

U.S. market, year to date

2012 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	6.183	30	17.22%	3	2.490	10	13.37%
2	JPMorgan	5.395	42	15.02%	1	3.266	26	17.54%
3	Morgan Stanley	4.457	37	12.41%	7	1.366	11	7.34%
4	Bank of America	4.304	33	11.98%	2	3.079	18	16.54%
5	Barclays	3.046	27	8.48%	6	1.387	10	7.45%
6	Citigroup	2.733	29	7.61%	4	1.503	15	8.07%
7	Deutsche Bank	2.210	17	6.15%	10	0.680	9	3.65%
8	Credit Suisse	1.417	16	3.95%	5	1.465	11	7.87%
9	Wells Fargo	0.855	10	2.38%	9	0.732	10	3.93%
10	Credit Agricole	0.826	4	2.30%
	Total	35.915	114	18.621	69
	Average size:	0.315	0.270
U.S. market, October
					2012 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	1.764	4	29.04%	6	0.076	1	2.85%
2	JPMorgan	1.439	7	23.69%	7	0.076	1	2.85%
3	Bank of America	0.678	7	11.16%	2	0.573	2	21.44%
4	Morgan Stanley	0.659	6	10.85%	9	0.072	1	2.72%
5	Barclays	0.348	3	5.72%	8	0.072	1	2.72%
6	Credit Suisse	0.226	3	3.73%	1	0.879	5	32.93%
7	Deutsche Bank	0.170	2	2.79%	5	0.076	1	2.85%
8	Jefferies	0.130	2	2.14%	10	0.060	1	2.25%
9	Citigroup	0.103	2	1.70%
9	RBC	0.103	2	1.70%	11	0.038	1	1.44%
	Total	6.076	14	2.670	8
	Average size:	0.434	0.334
Global, year to date
					2012 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	9.371	62	13.13%	3	4.018	32	10.02%
2	Goldman Sachs	6.825	39	9.56%	2	4.037	18	10.07%
3	Morgan Stanley	6.136	46	8.60%	7	2.460	19	6.13%
4	Bank of America	5.448	43	7.63%	4	3.906	25	9.74%
5	Deutsche Bank	5.262	32	7.37%	5	2.760	26	6.88%
6	UBS	4.372	18	6.12%	9	1.590	13	3.96%
7	Barclays	4.001	33	5.60%	8	2.212	17	5.51%
8	Citigroup	3.924	39	5.50%	6	2.518	23	6.28%
9	Credit Suisse	3.322	23	4.65%	1	4.144	18	10.33%
10	BNP	2.779	20	3.89%	10	1.305	9	3.25%
	Total	71.391	231	40.104	179
	Average size:	0.309	0.224
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.

• Preferred issues are included using the same criteria as for bonds.

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