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

• U.S. convertibles issuance stands at $43.3 billion year to date

• November U.S. convertibles issuance $7.36 billion in 21 deals

By Rebecca Melvin

New York, Nov. 27 - Goldman Sachs & Co. was top underwriter of convertible debt for the year to date through November, bringing $9.28 billion in 39 deals, or 21% of total issuance for the first 11 months of 2013, according to Prospect News data.

Goldman Sachs was also the top underwriter for November alone, and in fact stretched its year-to-date lead on the league tables with this month, bringing $3.1 billion in new paper, in nine deals, for 42% of the total for the month.

Goldman was sole bookrunner for the $1.3 billion Nvidia Corp. convertible deal, and it was also one of three joint bookrunners for the $1.25 billion Yahoo! Inc. convertibles deal, both priced in the last few days.

J.P. Morgan Securities LLC was the No. 2 underwriter of convertible debt for the year to date, with $6.30 billion in 50 deals for 14.5% of total volume; and BofA Merrill Lynch rose one rung to third place, with $5.26 billion in 41 deals, for 12% of total volume. Meanwhile, Morgan Stanley & Co. LLC slipped to No. 4 with $4.91 billion in 41 deals for 11% of the total.

Total U.S. volume for the first 11 months of 2013 is $43.30 billion of new issuance in 136 deals, which is more than double compared to the same period of 2012, when $19.64 billion in new issuance was priced in 76 deals.

Worldwide, JPMorgan was the top underwriter for global new issuance, with $11.27 billion in 73 deals, accounting for 12.4% of volume, followed closely by Goldman Sachs, which was underwriter for $11.08 billion in 51 deals for nearly 10% of the total, and then Morgan Stanley, which brought $6.14 billion in 46 deals for 12.2% of volume.

Total global issuance is also up significantly for the year to date at $91.12 billion in 276 deals for the first 11 months of 2013, compared to $49.4 billion in 201 deals for the same period of 2012.

Back in the United States, total issuance for November was $7.36 billion in 21 deals, which was higher compared to $1.02 billion in seven deals for October 2012.

Following Goldman Sachs, with its 42% of volume for the month, were BofA Merrill Lynch and JPMorgan in second and third place, respectively, with 13% and 12% of volume apiece.

In addition to Nvidia and Yahoo!, notable November deals included Incyte Corp.'s $700 million of convertible senior notes in two equally divided tranches priced Nov. 7. Incyte is a Wilmington, Del.-based biopharmaceutical company. And ServiceNow Inc.'s $500 million of five-year convertible senior notes priced Nov. 6 for a 0% coupon and a 37.5% premium, which represented the rich end of talked terms. ServiceNow is a San Diego, Calif.-based cloud-based IT service company.

U.S. market, year to date

2012 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	9.283	39	21.44%	3	2.504	11	12.75%
2	JPMorgan	6.296	50	14.54%	1	3.427	30	17.45%
3	Bank of America	5.260	41	12.15%	2	3.209	21	16.34%
4	Morgan Stanley	4.907	41	11.33%	7	1.429	13	7.28%
5	Citigroup	3.567	35	8.24%	4	1.528	16	7.78%
6	Barclays	3.199	29	7.39%	5	1.492	12	7.60%
7	Deutsche Bank	2.325	18	5.37%	10	0.693	10	3.53%
8	Credit Suisse	1.575	18	3.64%	6	1.490	12	7.59%
9	Wells Fargo	1.224	14	2.83%	9	0.757	11	3.86%
10	Jefferies	0.977	13	2.26%	12	0.397	4	2.02%
	Total	43.300	136	19.636	76
	Average size:	0.318	0.258
U.S. market, November
					2012 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	3.100	9	42.12%	13	0.013	1	1.31%
2	Bank of America	0.956	8	12.99%	3	0.130	3	12.81%
3	JPMorgan	0.901	8	12.24%	2	0.161	4	15.89%
4	Citigroup	0.833	6	11.32%	10	0.025	1	2.46%
5	Morgan Stanley	0.450	4	6.11%	5	0.063	2	6.24%
6	Wells Fargo	0.369	4	5.02%	11	0.025	1	2.46%
7	Jefferies	0.170	3	2.31%	1	0.230	1	22.66%
8	Credit Suisse	0.158	2	2.14%	12	0.025	1	2.46%
9	Barclays	0.153	2	2.08%	4	0.105	2	10.34%
10	Deutsche Bank	0.115	1	1.56%	14	0.013	1	1.31%
10	RBC	0.115	1	1.56%
	Total	7.360	21	1.015	7
	Average size:	0.350	0.145
Global, year to date
					2012 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	11.266	73	12.36%	1	4.647	37	9.42%
2	Goldman Sachs	11.081	51	12.16%	2	4.519	20	9.16%
3	Morgan Stanley	7.349	53	8.07%	6	3.006	23	6.09%
4	Bank of America	6.620	53	7.27%	4	4.214	30	8.54%
5	Deutsche Bank	6.374	36	7.00%	5	3.223	29	6.53%
6	UBS	5.254	23	5.77%	9	1.979	15	4.01%
7	Citigroup	5.157	46	5.66%	7	2.693	25	5.46%
8	Credit Suisse	4.781	28	5.25%	3	4.283	20	8.68%
9	Barclays	4.268	36	4.68%	8	2.317	19	4.69%
10	BNP	2.892	21	3.17%	10	1.476	11	2.99%
	Total	91.115	276	49.353	201
	Average size:	0.330	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.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.