PIPE issuers raise more from fewer deals; Friedman Billings takes top agent spot in U.S.

Scotia leads in Canadian market

By Stephanie N. Rotondo

Phoenix, Feb. 28 - U.S. and Canadian PIPE issuance was up from year-ago comparables in terms of dollars raised, though in some cases fewer deals were getting done.

Since the beginning of 2014, U.S. issuers have undertaken 109 private equity placements, raising $2.54 billion, according to data compiled by Prospect News. That compares with $1.38 billion raised via 114 deals the year before.

Direct placements were also better. Registered offerings brought in a total of $860 million through the end of February from 19 transactions. By the same time in 2013, only 11 deals had been done, resulting in proceeds of $743 million.

For the month, 44 private offerings were done for proceeds of $1.97 billion. In February 2013, 63 deals had been done, bringing in $782 million.

As for the Canadian market, 56 issuers have brought deals so far this year, raising C$328 million. In 2013, 54 transactions had taken place, raising C$287 million.

During the month, 42 Canadian deals were done for proceeds of C$315 million. That compares with 49 deals done the year before, which brought in C$235 million.

Friedman Billings swept the year and month as the top U.S. placement agent. The company facilitated a $190 million common stock offering for National General Holdings Corp.

DNB and RS Platou meantime tied for first place for direct placements. The agents raised $114 million via a private common stock sale for DHT Holdings Inc.

And Scotia was the top agent for the year and month in Canada. The investment bank raised C$33 million via a common stock offering for Reservoir Minerals Inc.

U.S. market, year to date

2013 Comparables

	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Friedman Billings	0.190	1	7.47%
2	Cowen	0.077	3	3.05%
3	Morgan Stanley	0.065	1	2.56%
4	Janney Montgomery Scott	0.044	2	1.73%
5	Barclays	0.040	1	1.57%
6	Chardan	0.025	1	0.98%	24	0.003	1	0.18%
7	Craig-Hallum	0.012	1	0.47%	20	0.004	1	0.30%
8	Accelerated Capital Group	0.010	1	0.39%
8	BMO	0.010	1	0.39%
8	Drexel Hamilton	0.010	1	0.39%
	Total	2.543	109	1.377	114
	Average size:	0.023	0.012
U.S. direct placements, year to date
					2013 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	DNB	0.114	1	13.22%
1	RS Platou	0.114	1	13.22%	1	0.280	4	37.71%
3	Maxim	0.035	2	4.13%
4	H.C. Wainwright	0.027	3	3.18%
5	Roth	0.025	2	2.93%	4	0.014	2	1.92%
6	Chardan	0.020	1	2.33%
6	T.R. Winston	0.020	1	2.33%
8	FT Global Capital	0.007	1	0.78%
9	Brean Capital	0.006	1	0.76%
10	Ladenburg Thalmann	0.006	1	0.70%
	Total	0.860	19	0.743	11
	Average size:	0.045	0.068
Canadian market, year to date
					2013 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Scotia	0.033	1	4.78%
2	Desjardins	0.025	1	3.62%
3	Canaccord	0.025	1	3.62%	2	0.035	3	6.66%
4	Macquarie	0.025	2	3.62%	9	0.005	1	0.94%
5	BMO	0.020	2	2.90%
6	RBC	0.014	1	2.03%
7	CIBC	0.014	1	2.03%
8	Laurentian Bank	0.014	2	2.01%
9	Dundee	0.013	3	1.89%	4	0.017	1	3.22%
10	BayFront Capital Partners	0.012	1	1.74%
	Total	0.315	42	0.235	49
	Average size:	0.007	0.005
U.S. market, February
					2013 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Friedman Billings	0.190	1	9.66%
2	Morgan Stanley	0.065	1	3.31%
3	Janney Montgomery Scott	0.044	2	2.24%
4	Barclays	0.040	1	2.03%
5	Craig-Hallum	0.012	1	0.61%
6	Drexel Hamilton	0.010	1	0.51%
7	Aegis	0.007	1	0.35%
8	Cabot Lodge	0.005	1	0.27%
9	Pariter	0.003	1	0.16%
10	Garden State	0.003	1	0.15%
	Total	1.967	44	0.782	63
	Average size:	0.045	0.012
Canadian market, February
					2013 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Scotia	0.033	1	10.05%
2	BMO	0.020	2	6.09%
3	CIBC	0.014	1	4.26%
3	RBC	0.014	1	4.26%
5	BayFront Capital Partners	0.012	1	3.65%
6	Macquarie	0.010	1	3.04%	6	0.005	1	1.71%
7	Dundee	0.005	1	1.52%	2	0.017	1	5.86%
7	M Partners	0.005	1	1.52%
7	Mackie	0.005	1	1.52%
10	AltaCorp	0.004	1	1.22%
	Total	0.328	56	0.287	54
	Average size:	0.006	0.005
Prospect News PIPE Agent Rankings

Criteria

• The tables include all dollar-denominated offerings (or Canadian dollar-denominated offerings for the Canadian tables) sold as private placements, excluding Rule 144A deals, or direct placements.

• Stock must be listed on a U.S. exchange or trade on the Bulletin Board or Pink Sheets (U.S. issues).

• Offerings are included in the time period in which they price, if known, otherwise by settlement date or announcement date.

• Amounts are based on the total sales price (face amount or number of shares multiplied by the offering price).

• Each tranche is counted as a separate deal.

• Includes stock, securities convertible into stock, units of these securities and equity lines of credit.

• Minimum issue size $1 million (all tranches combined) or C$1 million.

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