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

• U.S. convertibles issuance reaches $22.55 billion for year to date

• June U.S. convertibles issuance totals $4.9 billion in 16 deals

By Rebecca Melvin

New York, June 28 - Goldman Sachs & Co. was the No. 1 convertible bond underwriter in the United States for the first half of the year, remaining in the top slot for a second straight month, with $4.23 billion brought in 23 deals, or 18.8% of the total new issuance for 2013 to date, according to data compiled by Prospect News.

J.P. Morgan Securities LLC was the No. 2 convertibles underwriter, with $3.26 billion of new issuance in 29 deals for the year so far, accounting for 14.5% of the total.

Bank of America Merrill Lynch held the third slot for the year to date, with $3.23 billion in 20 deals, or 14.5% of the total, while Morgan Stanley & Co. Inc. was fourth with $2.31 billion in new issuance in 17 deals, accounting for 10% of total issuance.

Barclays Capital Inc. rose a few rungs after a particularly strong June, becoming the fifth-ranking convertibles underwriter with $2.10 billion in issuance in 17 deals, accounting for 9.3% of the total for the year so far, while Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. ranked sixth and seventh, with $1.76 billion and $1.75 million in issuance, respectively.

Rounding out the top 10 underwriters were Credit Suisse Securities (USA) Inc., Credit Agricole Corporate and Investment Bank and Wells Fargo Securities LLC.

In total, there was $22.55 billion in new paper in 69 deals for the year so far, which was more than double the $10.84 billion in 37 deals brought in the first half of 2012.

June was the strongest month for issuance for 2013 to date. There was $4.9 billion in new issuance in 16 deals, compared to $4.1 billion in new issuance in May, and $2.55 billion in 10 deals priced the same month a year ago.

J.P. Morgan was top underwriter of U.S. convertible debt in June, bringing $930 million in eight deals, accounting for 19% of total issuance. Barclays was No. 2 with $810 million in eight deals, or 17% of the total, and Goldman Sachs was third with $771 million in seven deals for 15.7% of the total. Citigroup ranked fourth with $587 million in new issuance in seven deals for 12% of the total.

Goldman Sachs was also the top underwriter of U.S. convertibles issuance for the second quarter, followed by J.P. Morgan in second place, and Barclays in third. These underwriters brought $2.15 billion in 12 deals, $1.73 billion in 16 deals and $1.35 billion in 12 deals, respectively.

Globally, there was $47.97 billion of new issuance in 138 deals for the year to date, which was more than double the $21.44 billion in 103 deals for the first half of 2012.

Lead underwriter globally was J.P. Morgan, accounting for $6.43 billion with a total of 41 deals for 13% share. Goldman Sachs was No. 2 global underwriter with $4.70 billion in 29 deals, accounting for 9.8% of global issuance, and Bank of America ranked third with $4.25 billion in 28deals for 8.9%.

Among notable U.S. deals in the past month were: Dominion Resources Inc.'s $1 billion of three-year mandatory convertible equity units in two tranches, which came at a 2% discount to their $50 par in a registered, off the shelf deal on June 3 via joint bookrunners J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co., and UBS Investment Bank.

Weyerhaeuser Co. priced an upsized $600 million of mandatories at par of $50, and with a 6.375% dividend and 20% initial conversion premium on June 19 via Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., and Citigroup Global Markets Inc. as joint bookrunning managers.

Cornerstone OnDemand Inc. priced $220 million of five-year convertibles on June 11 at par to yield 1.5%, with an initial conversion premium of 35%, via Goldman Sachs & Co. and Credit Suisse Securities (USA) LLC as joint bookrunners.

Workday Inc. priced an upsized $530 million of convertible bonds at par, including $310 million of 0.75% five-year convertibles with an initial conversion premium of 35% and $220 million of 1.5% seven-year notes with an initial conversion premium of 32.5% on June 11 via joint bookrunners Morgan Stanley & Co. LLC, Goldman Sachs & Co. and Barclays.

U.S. market, year to date

2012 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	4.229	23	18.75%	3	1.787	5	16.48%
2	JPMorgan	3.261	29	14.46%	2	1.964	14	18.11%
3	Bank of America	3.234	20	14.34%	1	2.219	11	20.46%
4	Morgan Stanley	2.309	18	10.24%	4	1.045	8	9.64%
5	Barclays	2.100	17	9.31%	6	0.443	4	4.09%
6	Citigroup	1.761	17	7.81%	5	0.979	8	9.03%
7	Deutsche Bank	1.747	12	7.74%	7	0.418	4	3.86%
8	Credit Suisse	0.994	11	4.41%	13	0.184	1	1.69%
9	Credit Agricole	0.662	2	2.94%
10	Wells Fargo	0.525	6	2.33%	9	0.352	6	3.25%
	Total	22.554	69	10.843	37
	Average size:	0.327	0.293
U.S. market, second quarter
					2012 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	2.147	12	19.56%	4	0.792	4	10.89%
2	JPMorgan	1.733	16	15.79%	1	1.656	10	22.77%
3	Barclays	1.350	12	12.30%	13	0.077	1	1.05%
4	Morgan Stanley	1.100	11	10.02%	3	0.961	6	13.21%
5	Citigroup	1.056	10	9.62%	5	0.645	6	8.87%
6	Deutsche Bank	0.824	7	7.50%	6	0.418	4	5.75%
7	Bank of America	0.822	9	7.49%	2	1.107	5	15.21%
8	Credit Suisse	0.594	6	5.42%	11	0.184	1	2.53%
9	Wells Fargo	0.416	4	3.79%	8	0.245	4	3.37%
10	UBS	0.304	3	2.77%	9	0.225	3	3.09%
	Total	10.975	34	7.274	25
	Average size:	0.323	0.291
U.S. market, June
					2012 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	0.930	8	18.98%	5	0.312	2	12.23%
2	Barclays	0.810	8	16.52%
3	Goldman Sachs	0.771	7	15.73%	1	0.590	2	23.15%
4	Citigroup	0.587	5	11.97%	3	0.383	4	15.02%
5	Morgan Stanley	0.430	4	8.78%	8	0.052	1	2.06%
6	Bank of America	0.378	3	7.72%	4	0.312	2	12.23%
7	UBS	0.304	3	6.21%	9	0.041	2	1.61%
8	Deutsche Bank	0.289	3	5.90%	13	0.018	1	0.73%
9	Wells Fargo	0.207	2	4.23%	12	0.018	1	0.73%
10	Credit Suisse	0.127	1	2.58%
	Total	4.900	16	2.548	10
	Average size:	0.306	0.255
Global, year to date
					2012 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	6.426	41	13.40%	3	2.208	16	10.30%
2	Goldman Sachs	4.697	29	9.79%	1	3.003	10	14.01%
3	Bank of America	4.247	28	8.85%	2	2.633	15	12.28%
4	Deutsche Bank	4.155	22	8.66%	5	1.516	15	7.07%
5	UBS	3.986	15	8.31%	9	0.553	7	2.58%
6	Morgan Stanley	3.389	22	7.06%	4	1.690	12	7.88%
7	Barclays	2.733	20	5.70%	7	0.736	6	3.43%
8	Citigroup	2.236	21	4.66%	6	1.512	13	7.05%
9	Credit Suisse	2.098	15	4.37%	13	0.369	2	1.72%
10	BNP	1.942	12	4.05%	35	0.071	1	0.33%
	Total	47.972	138	21.443	103
	Average size:	0.348	0.208
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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