Citigroup leads convertible league tables for year to date

• Convertibles issuance totals $58.08 billion year to date

• Citigroup top convertibles underwriter for November (including synthetics)

• Convertibles issuance (including synthetics) totals $67.6 billion year to date

•Banc of America top convertibles underwriter for November (excluding synthetics)

• Transmeridian deal's 15% dividend highest this year

By Kenneth Lim

Boston, Nov. 30 - The pace of convertible issuance picked up in November, as a wide range of issuers raised more proceeds than in the previous two months combined. Citigroup remained at the top of the convertible league tables year to date, while Banc of America led the pack for the month, excluding exchangeable deals.

Citigroup helped raise most of the money so far this year, with its deals accounting for 17.1%, or $9.95 billion, of the year-to-date proceeds. Merrill Lynch was second, helping raise 14.1% of the proceeds, followed by Morgan Stanley with 10.3%. Citigroup also topped the tables when synthetics were counted, although its share decreased to 16.63%. Including synthetics, Morgan Stanley leapfrogged into second place, displacing third-place Merrill Lynch.

Excluding investment bank exchangeables, Banc of America was responsible for the largest chunk of the proceeds raised in November, helped in no small part by a $1 billion offering of 20-year convertible senior debentures by Vornado Realty Trust. Banc of America was the sole bookrunner for that deal but had to reoffer the debentures at 97.5.

November's 22 new deals raised $8.74 billion in proceeds, 34.3% more than a year ago. That brought the year-to-date total to $58.08 billion, almost double the $30.46 billion raised in the same period in 2006 and more than the $8.34 billion from September and October. Including investment bank exchangeables, the year-to-date proceeds total $67.6 billion, of which $9.09 billion were raised in November.

The Rule 144A deals issued in November came in a range of shapes and sizes. The largest came from EMC Corp., which sold $3.45 billion of five- and seven-year convertible senior notes in two tranches. The smallest deal was Transmeridian Exploration Inc.'s $44 million offering, of which $7 million was sold in a separate private placement. The convertible senior preferred stock sold in Transmeridian's deal also had a dividend rate of 15%, the highest yield among Rule 144A offerings in the month.

A buyside convertible trader welcomed the robust issuance.

"It's always nice to see new paper enter the market," the trader said. "The third quarter was kind of slow, so it's good to see the deals pick up again."

The Prospect News figures cover dollar-denominated deals offered in the United States as registered transactions or under Rule 144A. They exclude deals issued by investment banks linked to a single stock - except where noted.

Year to date, excluding investment bank exchangeables

2005 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	9.954	27	17.14%	4	2.792	15	9.17%
2	Merrill Lynch	8.202	36	14.12%	5	2.680	18	8.80%
3	Morgan Stanley	5.999	21	10.33%	3	3.210	19	10.54%
4	Banc of America	5.853	32	10.08%	6	2.497	18	8.20%
5	Goldman Sachs	5.674	19	9.77%	1	5.758	17	18.91%
6	Lehman	5.119	14	8.81%	2	4.148	14	13.62%
7	UBS	4.562	22	7.86%	10	1.470	14	4.83%
8	JPMorgan	4.479	27	7.71%	8	2.059	18	6.76%
9	Credit Suisse	2.380	16	4.10%	9	1.826	12	6.00%
10	Deutsche Bank	2.207	12	3.80%	7	2.263	11	7.43%
	Total	58.078	137	30.455	105
	Average size:	0.424	0.290
Year to date, including investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	11.244	56	16.63%	3	4.713	44	13.20%
2	Morgan Stanley	8.569	94	12.68%	4	4.068	45	11.40%
3	Merrill Lynch	8.258	40	12.22%	5	2.961	21	8.30%
4	UBS	6.912	24	10.23%	10	1.470	14	4.12%
5	Lehman	6.370	44	9.42%	2	4.842	33	13.57%
6	Goldman Sachs	6.271	39	9.28%	1	6.450	51	18.07%
7	Banc of America	5.853	32	8.66%	6	2.497	18	7.00%
8	JPMorgan	4.532	71	6.70%	8	2.059	18	5.77%
9	Credit Suisse	2.471	87	3.66%	9	1.985	18	5.56%
10	Deutsche Bank	2.231	25	3.30%	7	2.266	14	6.35%
	Total	67.598	866	35.690	426
	Average size:	0.078	0.084
November, excluding investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Banc of America	1.429	4	16.36%	5	0.306	3	4.71%
2	Citigroup	1.392	4	15.93%	8	0.276	2	4.24%
3	Goldman Sachs	1.238	3	14.16%	1	3.333	3	51.22%
4	Lehman	1.206	3	13.80%	9	0.253	2	3.89%
5	Credit Suisse	0.777	2	8.90%	7	0.290	3	4.46%
6	UBS	0.672	5	7.69%	10	0.253	2	3.89%
7	Merrill Lynch	0.453	3	5.18%	3	0.377	3	5.79%
8	Morgan Stanley	0.404	3	4.63%	2	0.475	2	7.30%
9	Wachovia	0.305	2	3.49%	12	0.037	1	0.58%
10	Deutsche Bank	0.288	2	3.30%	11	0.253	2	3.89%
	Total	8.738	22	6.508	14
	Average size:	0.397	0.465
November, including investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	1.496	5	16.45%	4	0.395	5	5.74%
2	Banc of America	1.429	4	15.72%	8	0.306	3	4.46%
3	Lehman	1.245	5	13.69%	7	0.326	5	4.74%
4	Goldman Sachs	1.238	3	13.61%	1	3.276	4	47.65%
5	Credit Suisse	0.788	11	8.67%	3	0.444	4	6.45%
6	UBS	0.672	5	7.39%	11	0.253	2	3.68%
7	Morgan Stanley	0.469	6	5.15%	2	0.515	4	7.50%
8	Merrill Lynch	0.453	3	4.98%	5	0.377	3	5.48%
9	Wachovia	0.323	4	3.55%	12	0.044	2	0.64%
10	JPMorgan	0.298	15	3.28%	6	0.353	3	5.14%
	Total	9.093	108	6.876	41
	Average size:	0.084	0.168
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.

• 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.

• The investment bank exchangeables only group also includes bonds that convert into an index, a basket of stocks or a basket of indexes.

• 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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