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

• U.S. convertibles issuance reaches $17.96 billion for year to date

• May U.S. convertibles issuance totals $4.10 billion in 14 deals

By Rebecca Melvin

New York, May 30 - Goldman Sachs & Co. was top convertible bond underwriter for the first five months of the year, unseating Morgan Stanley & Co. Inc., which was atop the charts for much of the year so far, according to data compiled by Prospect News.

Goldman has brought $3.11 billion in 14 deals, or 17% of total new issuance for 2014 to date.

Morgan Stanley was a close second, underwriting $3.04 billion of convertibles in 18 deals, or 17% of the total for the year to date.

J.P. Morgan Securities LLC took the third slot with $2.44 billion of new issuance or the year so far, in 17 deals, accounting for 14% of the total, while Bank of America was fourth with $1.62 billion in new issuance in 13 deals, accounting for 9% of total issuance.

RBC Capital Markets LLC and Deutsche Bank Securities Inc. ranked fifth and sixth, with $1.45 billion and $1.34 billion in issuance, respectively.

Rounding out the top 10 underwriters for U.S. issuance were Credit Suisse Securities (USA) Inc., Barclays Capital Inc., Jefferies & Co. and Citigroup Global Markets Inc.

In total, there was $17.96 billion in new issuance in 53 deals for the year to date, which was almost identical to $17.70 billion in 53 deals for the first five months of 2013.

For May alone, there was $4.10 billion in new issuance in 14 deals, which was little changed from $4.18 billion in issuance in 12 deals for May 2013.

Goldman Sachs was the top underwriter of U.S. convertible debt in May, with $1.08 billion in five deals, accounting for 26% of total issuance. RBC was No. 2 with $899 million in three deals, or 22% of the total, J.P. Morgan was third with $598 million in five deals for 15% of the total, and Morgan Stanley was fourth with $391 million in new issuance in four deals for 10% of the total.

Globally, there was $35.14 billion of new issuance in 122 deals for the year to date, which lagged slightly from $39.74 billion in new issuance in 144 deals for the first five months of 2013.

Lead underwriter globally was Goldman Sachs, accounting for $4.46 billion in a total of 19 deals for a 13% share. Morgan Stanley was No. 2 global underwriter with $4.48 billion in 23 deals, accounting for 12% of global issuance.

Among notable U.S. deals in the past month were: Cobalt International Energy Inc.'s $1.3 billion of 20-year convertibles to yield 3.125% brought by Goldman Sachs and RBC. That offering, which priced on May 8, moved up in the secondary market after having met with favorable response during marketing, sources said. The new Cobalt 3.125% convertibles due 2024 were seen 103.5 bid, 104.25 offered at late morning on their debut with the underlying shares of the Houston-based oil exploration and development company down 6%.

Also of note was Spirit Realty Capital Inc.'s two new convertible bonds, including a $350 million tranche of five-year notes and an upsized $300 million of seven-year notes, which price May 14. Both series traded up to about the 101 mark before coming in to around par, and then closing around 100.5 for both on their debut.

Later in the month, Live Nation Entertainment Inc. priced $250 million of 2.5% convertibles, which gained in secondary market dealings to 101.5 bid, 102 offered after the Los Angeles-based concert promoter and music venue manager priced the senior notes at the rich end of talked terms.

Lastly, Spectranetics Corp.'s new 2.625% convertibles were trading at 103.5 bid, 104 offered with the shares at $22.10 on May 30, the day after a very active debut for the $200 million deal of 20-year notes that priced at toward the rich end and beyond the rich end of talked terms.

U.S. market, year to date

2013 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	3.109	14	17.31%	1	3.458	16	19.54%
2	Morgan Stanley	3.036	18	16.91%	4	1.886	14	10.65%
3	JPMorgan	2.440	17	13.59%	3	2.338	21	13.21%
4	Bank of America	1.620	13	9.02%	2	2.862	17	16.17%
5	RBC	1.448	6	8.06%	12	0.225	1	1.27%
6	Deutsche Bank	1.336	9	7.44%	5	1.464	9	8.27%
7	Credit Suisse	1.077	9	6.00%	8	0.867	10	4.90%
8	Barclays	0.932	6	5.19%	6	1.297	9	7.33%
9	Jefferies	0.743	4	4.14%	10	0.381	4	2.15%
10	Citigroup	0.663	5	3.69%	7	1.181	12	6.67%
	Total	17.958	53	17.699	53
	Average size:	0.339	0.334
Global, year to date
					2013 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	4.463	19	12.70%	1	3.926	22	9.88%
2	Morgan Stanley	4.048	23	11.52%	6	2.693	17	6.78%
3	JPMorgan	3.339	24	9.50%	3	3.738	30	9.41%
4	Bank of America	2.659	18	7.57%	2	3.840	24	9.66%
5	Deutsche Bank	2.465	15	7.01%	5	3.600	18	9.06%
6	Credit Suisse	1.949	14	5.55%	7	1.971	14	4.96%
7	Barclays	1.661	11	4.73%	8	1.930	12	4.86%
8	RBC	1.525	8	4.34%	18	0.342	4	0.86%
9	HSBC	1.365	6	3.88%	21	0.329	4	0.83%
10	Citigroup	1.221	7	3.47%	10	1.656	16	4.17%
	Total	35.143	122	39.735	114
	Average size:	0.288	0.349
U.S. market, May
					2013 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	1.080	5	26.35%	1	1.275	3	30.50%
2	RBC	0.899	3	21.93%
3	JPMorgan	0.598	5	14.59%	2	0.708	6	16.93%
4	Morgan Stanley	0.391	4	9.53%	4	0.477	5	11.41%
5	Bank of America	0.268	3	6.52%	8	0.182	3	4.35%
6	Piper Jaffray	0.200	1	4.88%
7	Barclays	0.193	2	4.71%	5	0.204	2	4.89%
8	Deutsche Bank	0.129	2	3.15%	3	0.541	4	12.94%
9	Wells Fargo	0.110	2	2.69%	11	0.067	1	1.60%
10	Raymond James	0.062	1	1.52%
	Total	4.100	14	4.180	12
	Average size:	0.293	0.348
Global, May
					2013 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	1.380	6	16.26%	1	1.348	4	16.70%
2	Morgan Stanley	1.029	6	12.12%	6	0.578	6	7.16%
3	RBC	0.899	3	10.59%	25	0.025	1	0.31%
4	Deutsche Bank	0.767	4	9.04%	5	0.817	6	10.12%
5	JPMorgan	0.598	5	7.05%	2	0.999	8	12.38%
6	Barclays	0.536	4	6.32%	7	0.422	4	5.22%
7	Bank of America	0.439	4	5.18%	4	0.856	7	10.61%
8	Santander	0.300	1	3.53%
9	Credit Agricole	0.300	1	3.53%	17	0.100	1	1.24%
10	Credit Suisse	0.299	2	3.53%	3	0.919	4	11.39%
	Total	8.490	28	8.072	25
	Average size:	0.303	0.323
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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