Analysis of convertibles issuance for 2004

Note: These figures are revised to exclude the Fannie Mae preferred offering which does not qualify for inclusion because it was not underwritten.

Total: $50.429 in 444 deals

Amount ($ billions) Number

Regular convertibles 46.042 205

Investment bank synthetics 4.387 239

Total 50.429 444

Note: Investment bank deals are offerings issued by an investment bank and linked to or exchangeable for the stock of another company.

All data below excludes these investment bank deals (but includes investment bank offerings convertible into their own stock).

Columns are amount in billions of dollars, count of deals, percentage of total in dollars.

Coupon

0%	2.035	7	4.42%
0.01%-0.99%	3.864	10	8.39%
1%-1.99%	6.277	28	13.63%
2%-2.99%	11.392	57	24.74%
3%-3.99%	6.047	37	13.13%
4%-4.99%	4.289	21	9.32%
5%-5.99%	4.157	16	9.03%
6% and higher	7.326	26	15.91%
Floater	0.655	3	1.42%
Total	46.042	205
Initial conversion premium
0%-19.99%	2.676	16	5.82%
20%-29.99%	10.634	35	23.11%
30%-39.99%	16.476	84	35.77%
40%-49.99%	11.305	50	24.56%
50%-59.99%	2.830	9	6.15%
60% and higher	1.500	3	3.25%
NA	0.622	8	1.35%
Total	46.042	205
Quick sale?
Yes	41.593	180	90.34%
No	4.449	25	9.66%
Total	46.042	205
Upsized?
Yes	14.950	73	32.47%
No	31.093	132	67.53%
Total	46.042	205
Rank
Senior secured	0.505	2	1.10%
Senior	29.223	125	63.47%
Senior subordinated	6.387	35	13.87%
Subordinated	3.440	22	7.47%
Preferred	6.487	21	14.09%
Total	46.042	205
Putable?
Yes	27.479	133	59.68%
No	18.563	72	40.32%
Total	46.042	205
Contingent conversion?
Yes	23.077	109	50.11%
No	22.967	96	49.88%
Total	46.042	205
Mandatory?
Yes	5.221	8	11.34%
No	40.821	197	88.66%
Total	46.042	205
Greenshoe exercised?
Yes	10.821	57	23.51%
No	35.221	148	76.50%
Total	46.042	205
Versus talk
Richer	1.581	9	3.43%
Rich end	10.362	34	22.51%
Within	15.861	71	34.45%
Cheap end	10.218	37	22.19%
Cheaper	0.935	3	2.03%
Other, NA	7.085	51	15.40%
Total	46.042	205
Use of proceeds
Acquisition	4.777	19	10.38%
Capex	1.169	8	2.54%
GCP	16.061	74	34.88%
Redeem convertibles	5.231	18	11.36%
Repay/refinance debt	7.298	33	15.85%
Repay bank debt	2.733	14	5.94%
Repay bank debt plus	0.885	7	1.92%
Other	7.887	32	17.14%
Total	46.042	205
Industry sector (by SIC code)
Mining (1xxx)	3.297	8	7.16%
Oil and gas (13xx)	1.198	8	2.60%
Construction (15xx)	0.475	3	1.03%
Manufacturing (2xxx, 3xxx)	8.307	52	18.04%
Pharmaceuticals (2834-6)	7.198	24	15.63%
Transportation (4xxx)	1.564	8	3.40%
Communications (48xx)	3.553	11	7.72%
Electric, gas, sanitary services (49xx)	1.634	5	3.55%
Wholesale (5xxx)	3.650	16	7.93%
Finance, insurance, real estate (6xxx)	8.115	35	17.62%
Services (7xxx)	7.016	35	15.24%
Total	46.042	205

Criteria

* The tables include all underwritten dollar-denominated offerings sold in the U.S. as public or Rule 144A deals reported to Prospect News.

* 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.

* 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.

* Units made up of a bond and stock are included; units made up of a bond and warrants are excluded.

* Preferred issues are included using the same criteria as for bonds.

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