Analysis of convertibles issuance for year to date and 12 months through May

Total year-to-date issuance: $31.774 billion in 298 deals

Amount ($ billions) Number

Regular convertibles 25.713 51

Investment bank synthetics 6.061 247

Total 31.774 298

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

	6/2005	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006
0%	0	0	0.010	0	0.046	0.068	0	0	0.974	0	0	0
0.01%-0.99%	0	0	0	0	0	0	0	0.575	5.000	0	1.600	2.500
1%-1.99%	0	0.150	0	0.160	0	0.250	0.095	0.968	0	0.400	5.150	1.375
2%-2.99%	1.095	0.725	0.906	0.250	0.225	0.690	2.746	0.345	0	0.926	0	1.480
3%-3.99%	0.620	1.075	0.855	0.715	0.398	1.415	0.998	0.600	0	0.830	0.144	0.250
4%-4.99%	0.388	0	0	0.300	0	0.361	0.350	0	0	0.550	0.058	0.295
5%-5.99%	0	0	0.115	0.146	0.525	0.950	0.615	0.500	0	0.291	0	0.125
6% and higher	2.805	0.045	0.087	0.219	0.318	0.773	1.245	0	0.340	0.218	0.133	0.087
Floater	0	0	2.500	0	0	2.000	2.000	0	0	0	0	0
Total	4.907	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.314	3.215	7.084	6.112
	Q3/2005	Count	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	YTD	Count	Total	Count	YTD Share
0%	0.010	1	0.114	2	0.974	1	0	0	0.974	1	1.098	4	3.79%
0.01%-0.99%	0	0	0	0	5.575	3	4.100	4	9.675	7	9.675	7	37.63%
1%-1.99%	0.310	2	0.345	2	1.367	3	6.525	5	7.893	8	8.547	12	30.70%
2%-2.99%	1.881	7	3.661	7	1.271	5	1.480	6	2.751	11	9.388	27	10.70%
3%-3.99%	2.645	11	2.810	5	1.430	5	0.394	3	1.824	8	7.898	27	7.09%
4%-4.99%	0.300	1	0.711	4	0.550	2	0.352	3	0.902	5	2.301	13	3.51%
5%-5.99%	0.261	3	2.090	8	0.791	2	0.125	1	0.916	3	3.267	14	3.56%
6% and higher	0.351	4	2.336	7	0.558	4	0.220	4	0.778	8	6.270	22	3.03%
Floater	2.500	1	4.000	2	0	0	0	0	0	0	6.500	3	0.00%
Total	8.258	30	16.067	37	12.517	25	13.196	26	25.713	51	54.945	129	100.00%
Premium
	6/2005	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006
19.99% and lower	0.920	0.520	0.087	0.135	0.307	0	1.600	0.575	5.000	0	6.091	0.395
20%-29.99%	3.892	0.500	3.501	0.529	0.461	3.910	5.229	2.188	0	1.974	0.850	0.875
30-39.99%	0	0.975	0.875	1.126	0.698	2.530	1.218	0.225	0.974	0.700	0.144	4.342
40-49.99%	0	0	0	0	0	0	0	0	0.165	0.291	0	0
50% and higher	0	0	0	0	0	0	0	0	0.175	0.250	0	0.500
NA	0.095	0	0.010	0	0.046	0.068	0	0	0	0	0	0
Total	4.907	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.314	3.215	7.084	6.112
	Q3/2005	Count	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	YTD	Count	Total	Count	YTD Share
19.99% and lower	0.742	6	1.907	3	5.575	3	6.486	10	12.061	13	15.630	23	46.91%
20%-29.99%	4.530	11	9.600	24	4.162	13	1.725	6	5.887	19	23.909	62	22.90%
30-39.99%	2.976	12	4.446	8	1.899	5	4.486	9	6.385	14	13.807	34	24.83%
40-49.99%	0	0	0	0	0.456	2	0	0	0.456	2	0.456	2	1.77%
50% and higher	0	0	0	0	0.425	2	0.500	1	0.925	3	0.925	3	3.60%
NA	0.010	1	0.114	2	0	0	0	0	0	0	0.219	5	0.00%
Total	8.258	30	16.067	37	12.517	25	13.196	26	25.713	51	54.945	129	100.00%
Quick Sale?
	6/2005	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006
Yes	2.592	1.845	3.746	1.646	1.147	5.816	3.885	2.143	6.314	2.824	6.850	6.000
No	2.315	0.150	0.727	0.144	0.364	0.692	4.163	0.845	0	0.392	0.234	0.112
Total	4.907	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.314	3.215	7.084	6.112
	Q3/2005	Count	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	7.237	24	10.848	25	11.280	21	12.850	21	24.130	42	44.808	98	93.84%
No	1.021	6	5.219	12	1.237	4	0.346	5	1.583	9	10.137	31	6.16%
Total	8.258	30	16.067	37	12.517	25	13.196	26	25.713	51	54.945	129	100.00%
Upsized?
	6/2005	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006
Yes	0.787	0.700	0.087	0.275	0	1.265	2.226	0.600	0	0.846	1.600	0.325
No	4.120	1.295	4.386	1.515	1.275	5.243	5.822	2.388	6.314	2.078	5.484	5.787
Downsized	0	0	0	0	0.236	0	0	0	0	0.291	0	0
Total	4.907	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.314	3.215	7.084	6.112
	Q3/2005	Count	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	1.062	4	3.491	6	1.446	5	1.925	4	3.371	9	8.711	22	13.11%
No	7.196	26	12.340	30	10.780	19	11.271	22	22.051	41	45.707	105	85.76%
Downsized	0	0	0.236	1	0.291	1	0	0	0.291	1	0.527	2	1.13%
Total	8.258	30	16.067	37	12.517	25	13.196	26	25.713	51	54.945	129	100.00%
Seniority
	6/2005	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006
senior	1.558	1.745	3.903	0.990	0.750	4.398	5.345	1.887	6.139	2.084	6.841	5.300
senior subordinated	1.069	0.250	0.225	0.125	0	0.761	0.331	0.375	0	0.441	0	0.360
subordinated	0.210	0	0.230	0.375	0	0.450	1.850	0.225	0.175	0.200	0.144	0.440
preferred	2.070	0	0.115	0.300	0.761	0.898	0.522	0.500	0	0.491	0.100	0.012
Total	4.907	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.314	3.215	7.084	6.112
	Q3/2005	Count	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	YTD	Count	Total	Count	YTD Share
senior	6.638	21	10.493	19	10.110	15	12.141	18	22.251	33	40.939	79	86.54%
senior subordinated	0.600	4	1.092	7	0.816	4	0.360	3	1.175	7	3.937	20	4.57%
subordinated	0.605	3	2.300	3	0.600	3	0.584	3	1.184	6	4.299	14	4.60%
preferred	0.415	2	2.182	8	0.991	3	0.112	2	1.103	5	5.770	16	4.29%
Total	8.258	30	16.067	37	12.517	25	13.196	26	25.713	51	54.945	129	100.00%
Contingent Conversion
	6/2005	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006
Yes	2.502	1.350	1.231	0.435	0.623	2.480	1.241	1.095	5.340	1.530	6.651	4.825
No	2.405	0.645	3.242	1.355	0.889	4.028	6.807	1.893	0.974	1.685	0.433	1.287
Total	4.907	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.314	3.215	7.084	6.112
	Q3/2005	Count	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	3.016	11	4.343	13	7.965	14	11.476	14	19.441	28	29.303	58	75.61%
No	5.242	19	11.724	24	4.552	11	1.720	12	6.272	23	25.642	71	24.39%
Total	8.258	30	16.067	37	12.517	25	13.196	26	25.713	51	54.945	129	100.00%
Mandatory
	6/2005	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006
Yes	2.080	0	0.125	0	0.282	0.692	1.245	0.500	0	0	0	0
No	2.827	1.995	4.348	1.790	1.230	5.816	6.803	2.487	6.314	3.215	7.084	6.112
Total	4.907	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.314	3.215	7.084	6.112
	Q3/2005	Count	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	0.125	2	2.218	7	0.500	1	0	0	0.500	1	4.923	12	1.94%
No	8.133	28	13.849	30	12.017	24	13.196	26	25.213	50	50.022	117	98.06%
Total	8.258	30	16.067	37	12.517	25	13.196	26	25.713	51	54.945	129	100.00%
Greenshoe Exercised?
	6/2005	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006
Yes	4.162	1.445	1.231	1.205	0.398	3.540	4.298	2.263	1.139	1.906	6.651	0.385
No	0.745	0.550	3.242	0.585	1.114	2.968	3.750	0.725	5.175	1.309	0.433	5.727
Total	4.907	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.314	3.215	7.084	6.112
	Q3/2005	Count	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	3.881	18	8.235	21	5.308	15	7.036	11	12.344	26	28.622	73	48.01%
No	4.377	12	7.832	16	7.209	10	6.160	15	13.369	25	26.323	56	51.99%
Total	8.258	30	16.067	37	12.517	25	13.196	26	25.713	51	54.945	129	100.00%
Versus Talk
	6/2005	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006
Richer	0	0	0	0	0	0	0.210	0	0	0	0	0
Rich end	0.149	0.150	0	0.701	0.525	0.173	0.958	0.500	0.165	0.472	0	0.325
Within	2.070	1.325	3.042	0.579	0.461	3.010	3.558	2.112	5.000	1.065	2.600	2.780
Cheap end	1.768	0	1.121	0.250	0.225	1.991	0.973	0.375	0.175	1.210	2.950	2.625
Cheaper	0	0	0.300	0.125	0	1.265	0	0	0	0.200	1.444	0.295
NA, other	0.920	0.520	0.010	0.135	0.300	0.068	2.350	0	0.974	0.268	0.091	0.087
Total	4.907	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.314	3.215	7.084	6.112
	Q3/2005	Count	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	YTD	Count	Total	Count	YTD Share
Richer	0	0	0.210	1	0	0	0	0	0	0	0.210	1	0.00%
Rich end	0.851	4	1.656	5	1.137	4	0.325	1	1.462	5	4.120	15	5.69%
Within	4.946	12	7.029	13	8.177	11	5.380	12	13.557	23	27.602	49	52.72%
Cheap end	1.371	6	3.189	9	1.760	6	5.575	4	7.335	10	13.662	30	28.53%
Cheaper	0.425	2	1.265	2	0.200	1	1.739	5	1.939	6	3.629	10	7.54%
NA, other	0.665	6	2.718	7	1.242	3	0.178	4	1.420	7	5.723	24	5.52%
Total	8.258	30	16.067	37	12.517	25	13.196	26	25.713	51	54.945	129	100.00%
Use of Proceeds
	6/2005	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006
Acquisition	2.070	0.700	0	0	0	3.715	0.100	0.845	0	0.200	0.058	0
Capex	0	0	0	0	0	0	0.204	0	0	0	0	0
GCP	0.295	0.770	3.150	0.561	1.211	0.723	3.031	0.375	0.165	1.093	0.433	4.337
Redeem convertibles	0.920	0	0.345	0	0.172	0.201	0	0	1.149	0.850	0.144	0.225
Refinance	1.113	0.375	0.881	0.404	0	1.500	2.502	1.768	0	0.892	0	0.260
Multiple/Other/NA	0.510	0.150	0.097	0.825	0.128	0.368	2.210	0	5.000	0.180	6.450	1.290
Total	4.907	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.314	3.215	7.084	6.112
	Q3/2005	Count	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	YTD	Count	Total	Count	YTD Share
Acquisition	0.700	1	3.815	5	1.045	3	0.058	1	1.103	4	7.688	11	4.29%
Capex	0	0	0.204	2	0	0	0	0	0	0	0.204	2	0.00%
GCP	4.481	11	4.966	13	1.633	7	4.770	11	6.404	18	16.146	45	24.91%
Redeem convertibles	0.345	2	0.374	2	1.999	5	0.369	2	2.368	7	4.006	12	9.21%
Refinance	1.660	9	4.002	8	2.659	7	0.260	2	2.919	9	9.694	29	11.35%
Multiple/Other/NA	1.072	7	2.706	7	5.180	3	7.740	10	12.920	13	17.207	30	50.25%
Total	8.258	30	16.067	37	12.517	25	13.196	26	25.713	51	54.945	129	100.00%
Industry Sector (by SIC code)
	6/2005	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006
Mining (1xxx)	0	0	0	0	0	0	0	0	0	0	0.144	0
Oil and gas (13xx)	0	0.325	0	0.386	0	1.265	0.113	0	0	0	0	2.500
Manufacturing (2xxx, 3xxx)	0.385	0.995	0.326	0.125	0.398	0.526	2.726	0.720	0.974	0.948	4.758	2.350
Pharmaceuticals (2833-6)	1.419	0	0.230	0.315	0.082	0	0.115	1.393	5.000	0.573	2.083	0.550
Transportation (4xxx)	0	0	0	0.144	0	0	0.302	0	0	0	0	0
Communications (48xx)	0	0	0.350	0.160	0	1.265	0	0	0	0.374	0	0.275
Electric, gas, sanitary services (49xx)	0.650	0	0	0	0	0	0.500	0.500	0	0.200	0	0
Wholesale (5xxx)	0	0.125	0.115	0.150	0	0.310	1.097	0.375	0.165	0.200	0	0
Finance, insurance, real estate (6xxx)	2.453	0	2.927	0.335	0.507	2.992	3.195	0	0	0.691	0.100	0.012
Services (7xxx)	0	0	0.300	0.175	0.525	0.150	0	0	0.175	0.230	0	0.175
Health services (8xxx)	0	0.550	0.225	0	0	0	0	0	0	0	0	0.250
Total	4.907	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.314	3.215	7.084	6.112
	Q3/2005	Count	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	YTD	Count	Total	Count	YTD Share
Mining (1xxx)	0	0	0	0	0	0	0.144	1	0.144	1	0.144	1	0.56%
Oil and gas (13xx)	0.711	3	1.377	3	0	0	2.500	1	2.500	1	4.589	7	9.72%
Manufacturing (2xxx, 3xxx)	1.446	6	3.650	10	2.642	9	7.107	11	9.749	20	15.230	39	37.91%
Pharmaceuticals (2833-6)	0.545	2	0.197	2	6.965	6	2.633	6	9.598	12	11.760	19	37.33%
Transportation (4xxx)	0.144	1	0.302	2	0	0	0	0	0	0	0.446	3	0.00%
Communications (48xx)	0.510	2	1.265	1	0.374	1	0.275	2	0.649	3	2.424	6	2.52%
Electric, gas, sanitary services (49xx)	0	0	0.500	1	0.700	2	0	0	0.700	2	1.850	4	2.72%
Wholesale (5xxx)	0.390	3	1.407	4	0.740	3	0	0	0.740	3	2.538	10	2.88%
Finance, insurance, real estate (6xxx)	3.262	7	6.693	12	0.691	2	0.112	2	0.803	4	13.211	27	3.12%
Services (7xxx)	0.475	3	0.675	2	0.405	2	0.175	2	0.580	4	1.730	9	2.26%
Health services (8xxx)	0.775	3	0	0	0	0	0.250	1	0.250	1	1.025	4	0.97%
Total	8.258	30	16.067	37	12.517	25	13.196	26	25.713	51	54.945	129	100.00%

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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