Goldman Sachs top U.S. market convertibles underwriter for 2013

• U.S. convertibles issuance totals $49.15 billion for 2013

By Rebecca Melvin

New York, Dec. 31 - Goldman Sachs & Co. was the top U.S. convertibles underwriter for 2013, keeping its position for a second year in a row and bringing $10.75 billion in new issuance in 46 deals, or nearly 22% of total issuance for the year, according to data compiled by Prospect News.

The other underwriters on the top-five list were also unchanged from 2012. J.P. Morgan Securities LLC underwrote the second highest amount of convertible debt with $6.63 billion in 53 deals, or 13.5% of the total, retaining its No. 2 rank.

BofA Merrill Lynch ranked No. 3, bringing $6.03 billion in 47 deals for 12% of total volume. Morgan Stanley & Co. LLC ranked No. 4 for 2013, bringing $5.15 billion in 44 deals for 10.5% of the total volume in 2013, and Citigroup Global Markets Inc. was fifth with $3.88 billion in new issuance in 39 deals for nearly 8% of total volume.

Then Barclays climbed a rung to rank sixth with $3.55 billion in 34 deals for 7% of 2013's total, and Deutsche Bank Securities Inc. climbed several rungs to rank seventh, with $2.94 billion in new convertibles issuance, or 24 deals, for nearly 6% of the total.

Credit Suisse Securities (USA) LLC fell two rungs with $2.19 billion in issuance in 25 deals, or 4.5% of the total, while Wells Fargo Securities LLC and Jefferies & Co. rounded out the remaining top 10 underwriters of convertible debt for 2013. UBS Securities LLC didn't make the top-10 list this year.

Many of the tallies were more than 100% higher than in 2012. Goldman's $10.75 billion total was up from $3.97 billion for 2012. JPMorgan's $6.60 billion was up from $3.66 billion in 2012, and BofA Merrill Lynch's $6.03 billion total was up from $3.2 billion in 2012.

All together there was $49.15 billion of U.S. convertible debt raised in 157 deals, which was more than 100% higher than the $22.33 billion raised in 84 deals in 2012, a multi-year low for the asset class.

Goldman leads Q4

Goldman Sachs was also No. 1 underwriter for the fourth quarter, bringing $6.33 billion in 20 deals for 34% of the total, and the No.1 underwriter for December, bringing $1.25 billion in seven deals for 22.6% of total volume.

JPMorgan was the No. 2 underwriter of convertibles for the fourth quarter, but BofA Merrill Lynch was the No. 2 underwriter for December.

JPMorgan dropped to seventh on the league tables for December, down from sixth for December 2012.

Fourth-quarter issuance for 2013 was a robust $19.32 billion in 57 deals, which was up from $6.37 billion in 23 deals for the fourth-quarter of 2012.

For December alone, there was $5.52 billion in new issuance in 21 deals, compared to the year-earlier December when $2.69 billion in eight deals priced.

Global convertibles issuance for 2013 was also more than 100% higher than in 2012. Total global convertibles issuance was $102.20 billion in 309 deals, compared to $53.07 billion in 211 deals for the year earlier.

Average deal size in the United States recovered to about $313 million per deal, compared to $266 million in 2012 and more on par with $309 million per deal for 2011. Globally, deal size increased on average to $331 million from $252 million.

Higher convertibles issuance in 2013 was driven primarily by higher interest rates and a continuing rally in equities.

Some of the notable deals in 2013 included Tesla Motors Inc.'s $660 million of five-year convertible senior notes, as well as Priceline.com Inc.' s, Yahoo! Inc.'s and SunEdison Inc.'s $1 billion plus offerings.

U.S. market, year to date

2012 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	10.746	46	21.86%	1	3.968	15	17.77%
2	JPMorgan	6.630	53	13.49%	2	3.657	31	16.38%
3	Bank of America	6.027	47	12.26%	3	3.209	21	14.37%
4	Morgan Stanley	5.153	44	10.48%	4	2.144	15	9.60%
5	Citigroup	3.878	39	7.89%	5	1.551	17	6.95%
6	Barclays	3.552	34	7.23%	7	1.492	12	6.68%
7	Deutsche Bank	2.940	24	5.98%	10	0.693	10	3.11%
8	Credit Suisse	2.190	25	4.46%	6	1.513	13	6.78%
9	Wells Fargo	1.845	20	3.75%	9	0.780	12	3.49%
10	Jefferies	1.088	15	2.21%	13	0.397	4	1.78%
	Total	49.154	157	22.328	84
	Average size:	0.313	0.266
U.S. market, fourth quarter
					2012 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	6.327	20	32.76%	1	1.554	6	24.37%
2	JPMorgan	2.674	18	13.84%	6	0.467	6	7.33%
3	Bank of America	2.401	21	12.43%	4	0.703	5	11.02%
4	Morgan Stanley	1.355	13	7.02%	3	0.851	5	13.34%
5	Citigroup	1.248	12	6.46%	15	0.048	2	0.75%
6	Wells Fargo	1.074	11	5.56%	8	0.285	4	4.46%
7	Credit Suisse	0.999	12	5.17%	2	0.927	7	14.54%
8	Deutsche Bank	0.899	9	4.65%	12	0.089	2	1.40%
9	Barclays	0.854	10	4.42%	9	0.177	3	2.78%
10	Jefferies	0.411	7	2.13%	7	0.290	2	4.55%
	Total	19.315	57	6.377	23
	Average size:	0.339	0.277
U.S. market, December
					2012 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	1.248	7	22.59%	1	1.464	4	54.41%
2	Bank of America	0.758	6	13.73%
3	Wells Fargo	0.616	6	11.15%	7	0.023	1	0.85%
4	Deutsche Bank	0.614	6	11.12%
5	Credit Suisse	0.600	7	10.87%	8	0.023	1	0.85%
6	Barclays	0.350	5	6.34%
7	JPMorgan	0.303	3	5.49%	3	0.230	1	8.54%
8	Citigroup	0.288	4	5.22%	6	0.023	1	0.85%
9	Morgan Stanley	0.233	3	4.22%	2	0.715	2	26.56%
10	RBC	0.137	2	2.48%	5	0.095	1	3.52%
	Total	5.522	21	2.692	8
	Average size:	0.263	0.336
Global, year to date
					2012 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	12.570	58	12.30%	1	5.983	24	11.27%
2	JPMorgan	11.599	76	11.35%	2	4.877	38	9.19%
3	Morgan Stanley	8.104	60	7.93%	5	3.852	26	7.26%
4	Bank of America	7.523	60	7.36%	4	4.214	30	7.94%
5	Deutsche Bank	6.988	42	6.84%	6	3.353	30	6.32%
6	Citigroup	5.786	52	5.66%	7	2.847	27	5.36%
7	Credit Suisse	5.588	37	5.47%	3	4.306	21	8.11%
8	UBS	5.254	23	5.14%	9	1.986	16	3.74%
9	Barclays	4.696	42	4.59%	8	2.317	19	4.37%
10	BNP	2.892	21	2.83%	10	1.607	12	3.03%
	Total	102.195	309	53.068	211
	Average size:	0.331	0.252
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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