Citigroup top convertibles underwriter for January

• Convertibles issuance totals $3.10 billion for January

New York, Jan. 31 - Citigroup started the year as the number one underwriter of convertibles, according to data compiled by Prospect News.

But after a strong December, activity slumped to $3.10 billion, with one deal accounting for 48% of that figure.

Citigroup had been the second placed underwriter for all of 2005.

Excluding investment bank exchangeable deals, Merrill Lynch ranked first for January, although it was only marginally ahead of Citigroup at number two.

Teva Pharmaceutical Industries Ltd.'s $1.5 billion offering of convertible notes in two tranches accounted for the bulk of the month's activity and ensured a strong showing for its three bookrunners, Citigroup, Credit Suisse and Lehman Brothers.

However Merrill benefited from being the sole bookrunner on three deals, AAR Corp., United Auto Group Inc. and Hutchinson Technology Inc.

The $3.10 billion total for the month was the smallest since October 2005's $1.79 billion. It was, however, better than January 2005's $2.51 billion.

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

Excluding those investment bank synthetics, January's total is $2.73 billion versus $2.04 billion in January 2005.

Issuance of all investment bank exchangeables - including those linked to an index or a basket of stock or indexes as well as those linked to a single stock - was $0.76 billion for the month. Goldman Sachs & Co. placed first in that ranking.

January, including investment bank exchangeables

2005 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	0.756	6	24.36%	8	0.065	1	2.59%
2	Merrill Lynch	0.675	3	21.75%	5	0.144	1	5.73%
3	Lehman	0.473	4	15.25%	3	0.232	3	9.23%
4	Credit Suisse	0.417	2	13.43%	2	0.300	1	11.94%
5	Morgan Stanley	0.332	3	10.70%	1	1.227	6	48.80%
6	Bear Stearns	0.300	1	9.67%	-	-	-	-
7	Goldman Sachs	0.115	5	3.71%	4	0.232	10	9.22%
8	Barclays	0.030	9	0.98%	10	0.028	5	1.13%
9	LaSalle	0.005	3	0.15%	-	-	-	-
	Total	3.103	31	2.513	40
	Average size:	0.100	0.063
January, excluding investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Merrill Lynch	0.675	3	24.77%	-	-	-	-
2	Citigroup	0.667	3	24.46%	-	-	-	-
3	Credit Suisse	0.417	2	15.29%	2	0.300	1	14.72%
4	Lehman	0.417	2	15.29%	8	0.048	1	2.36%
5	Bear Stearns	0.300	1	11.01%	-	-	-	-
6	Morgan Stanley	0.250	1	9.17%	1	1.172	4	57.51%
	Total	2.725	7	2.038	9
	Average size:	0.389	0.226
January, investment bank exchangeables only
	Underwriter	Amount	No.	Share
1	Goldman Sachs	0.205	8	26.86%
2	Morgan Stanley	0.184	7	24.16%
3	Citigroup	0.141	5	18.50%
4	UBS	0.069	3	9.11%
5	Lehman	0.064	3	8.43%
6	Banc of America	0.040	1	5.25%
7	Barclays	0.030	9	4.00%
8	Wachovia	0.011	1	1.41%
9	JPMorgan	0.006	4	0.80%
10	LaSalle	0.005	3	0.60%
	Total	0.762	46
	Average size:	0.017
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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