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

• U.S. convertibles issuance reaches $24.11 billion for year to date

• July U.S. convertibles issuance totals $1.49 billion in nine deals

By Rebecca Melvin

New York, July 31 - Goldman Sachs & Co. remained the top underwriter of convertible debt for the year to date through July, having brought $4.29 billion in 24 deals, or 17.8% of total new issuance for 2013 so far, according to data compiled by Prospect News.

BofA Merrill Lynch was the No. 2 convertibles underwriter, having brought $3.56 billion in 25 deals, for 15% of the total for the year to date.

J.P. Morgan Securities LLC was third, bringing $3.45 billion in 32 deals for 14% of the total.

Total volume for the first seven months of 2013 is still running at more than double last year's pace, with $24.11 billion in 78 deals having been transacted, compared to $11.30 billion in 40 deals for the same period of 2012. This year's total volume is in line with the $22.77 billion in 72 deals brought in the first seven months of 2011, however.

JPMorgan was the top underwriter for global new issuance for the year to date, with $6.72 billion in new issuance in 46 deals across the world, accounting for 13% of volume, followed on a worldwide basis by Goldman Sachs, which was underwriter for $4.78 billion in 30 deals, accounting for 13% of volume.

Global issuance is also running at about double last year's pace, with $50.9 billion in 158 deals for the first seven months of 2013, compared to $24.01 billion in 111 deals for the year-earlier period. This year's tally is also running ahead of 2011's, which was $43.47 billion in 163 deals for the first seven months.

For July alone, there was $1.49 billion in new U.S. issuance in nine deals, which was about three times as much as the $454 million in three deals for July 2012 but less than the $3.2 billion in 13 deals for July 2011.

BofA Merrill Lynch was the top underwriter of U.S. convertible bonds for July with $331 million in five deals, accounting for 22% of the total. Morgan Stanley & Co. LLC was the No. 2 underwriter of convertible debt in July with $184 million in three deals, accounting for 12% of the total; and JPMorgan was third with $174 million in three deals for a little less than 12%.

The July deals included Healthways Inc.'s $125 million of 1.5% five-year convertible senior notes at the beginning of the month sold via by joint bookrunners JPMorgan (active), SunTrust Robinson Humphrey Inc. and Morgan Stanley (passive). The Nashville-based provider of well-being improvement solutions sold the notes at the midpoint of talk.

Ares Capital Corp., Forest City Enterprises Inc. and American Realty Capital Properties Inc. sold deals that together with over-allotment options totaled about $300 million each. These were the month's biggest deals.

Ares Capital's 4.375% convertibles were reoffered at 98.5. They were sold via active joint bookrunners BofA Merrill Lynch, Morgan Stanley and Wells Fargo Securities LLC and passive joint bookrunner Deutsche Bank Securities Inc. Ares is a New York-based private equity firm.

Forest City's 3.625% convertible senior notes have a seven-year tenor and came at the midpoint of talk via BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Goldman Sachs and Morgan Stanley. Forest City is a Cleveland-based real estate developer with $10.6 billion in assets.

American Realty sold its 3% convertible senior notes due 2018 via JPMorgan, Citigroup, Barclays, BMO, and Keybank. The real estate investment company is based in New York.

U.S. market, year to date

2012 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	4.289	24	17.79%	3	1.816	6	16.07%
2	Bank of America	3.564	25	14.79%	1	2.325	13	20.58%
3	JPMorgan	3.449	32	14.31%	2	2.027	15	17.94%
4	Morgan Stanley	2.497	21	10.36%	4	1.045	8	9.25%
5	Barclays	2.240	19	9.29%	7	0.443	4	3.92%
6	Citigroup	1.922	20	7.97%	5	1.042	9	9.22%
7	Deutsche Bank	1.825	13	7.57%	6	0.447	5	3.96%
8	Credit Suisse	1.028	12	4.27%	10	0.276	3	2.44%
9	Credit Agricole	0.662	2	2.75%
10	Wells Fargo	0.613	7	2.54%	9	0.396	7	3.50%
	Total	24.107	78	11.298	40
	Average size:	0.309	0.282
U.S. market, July
					2012 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Bank of America	0.331	5	22.22%	1	0.106	2	23.42%
2	Morgan Stanley	0.184	3	12.35%
3	JPMorgan	0.174	3	11.72%	4	0.063	1	13.92%
4	Citigroup	0.157	3	10.51%	3	0.063	1	13.92%
5	Barclays	0.122	2	8.19%
6	Jefferies	0.100	1	6.71%
7	Deutsche Bank	0.074	1	4.96%	8	0.029	1	6.33%
8	Wells Fargo	0.074	1	4.96%	5	0.043	1	9.49%
9	Keybank	0.062	1	4.16%
10	BMO	0.062	1	4.16%
	Total	1.489	9	0.454	3
	Average size:	0.165	0.151
Global, year to date
					2012 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	6.718	46	13.21%	4	2.271	17	9.46%
2	Goldman Sachs	4.757	30	9.35%	1	3.032	11	12.63%
3	Bank of America	4.617	34	9.08%	2	2.740	17	11.41%
4	Deutsche Bank	4.233	23	8.32%	7	1.545	16	6.44%
5	UBS	4.032	16	7.93%	10	0.582	8	2.42%
6	Morgan Stanley	3.636	26	7.15%	5	1.690	12	7.04%
7	Barclays	2.919	23	5.74%	8	0.736	6	3.06%
8	Citigroup	2.397	24	4.71%	6	1.576	14	6.56%
9	Credit Suisse	2.132	16	4.19%	3	2.403	5	10.01%
10	BNP	1.942	12	3.82%	36	0.071	1	0.29%
	Total	50.853	158	24.008	111
	Average size:	0.322	0.216
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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