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

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

Amount ($ billions) Number

Regular convertibles 35.595 70

Investment bank synthetics 6.529 294

Total 42.124 364

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

	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006
0%	0	0.010	0	0.046	0.068	0	0	0.974	0	0	0	0
0.01%-0.99%	0	0	0	0	0	0	0.575	5.000	0	1.600	2.750	1.100
1%-1.99%	0.150	0	0.160	0	0.250	0.095	0.968	0	0.400	5.150	1.425	2.150
2%-2.99%	0.725	0.906	0.250	0.225	0.690	2.746	0.345	0	0.926	0	1.505	0.794
3%-3.99%	1.075	0.855	0.715	0.398	1.415	0.998	0.600	0	0.830	0.144	0.280	2.319
4%-4.99%	0	0	0.300	0	0.361	0.350	0	0	0.550	0.058	0.345	1.575
5%-5.99%	0	0.115	0.146	0.525	0.950	0.615	0.500	0	0.291	0	0.125	0.300
6% and higher	0.045	0.087	0.219	0.318	0.773	1.245	0	0.365	0.218	0.133	0.089	0.500
Floater	0	2.500	0	0	2.000	2.000	0	0	0	0	0	0.713
Total	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450
	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	2.74%
0.01%-0.99%	0	0	0	0	5.575	3	5.450	5	11.025	8	11.025	8	30.97%
1%-1.99%	0.310	2	0.345	2	1.367	3	8.725	8	10.092	11	10.748	15	28.35%
2%-2.99%	1.881	7	3.661	7	1.271	5	2.300	9	3.571	14	9.113	28	10.03%
3%-3.99%	2.645	11	2.810	5	1.430	5	2.743	9	4.173	14	9.627	30	11.72%
4%-4.99%	0.300	1	0.711	4	0.550	2	1.978	5	2.527	7	3.539	12	7.10%
5%-5.99%	0.261	3	2.090	8	0.791	2	0.425	2	1.216	4	3.566	15	3.42%
6% and higher	0.351	4	2.336	7	0.583	4	0.722	5	1.305	9	3.992	20	3.66%
Floater	2.500	1	4.000	2	0	0	0.713	2	0.713	2	7.213	5	2.00%
Total	8.258	30	16.067	37	12.542	25	23.054	45	35.595	70	59.920	137	100.00%
Premium
	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006
19.99% and lower	0.520	0.087	0.135	0.307	0	1.600	0.575	5.000	0	6.091	0.395	2.544
20%-29.99%	0.500	3.501	0.529	0.461	3.910	5.229	2.188	0	1.974	0.850	1.005	4.834
30-39.99%	0.975	0.875	1.126	0.698	2.530	1.218	0.225	0.974	0.700	0.144	4.619	1.522
40-49.99%	0	0	0	0	0	0	0	0.165	0.291	0	0	0.550
50% and higher	0	0	0	0	0	0	0	0.200	0.250	0	0.500	0
NA	0	0.010	0	0.046	0.068	0	0	0	0	0	0	0
Total	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450
	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	9.030	15	14.605	18	17.254	27	41.03%
20%-29.99%	4.530	11	9.600	24	4.162	13	6.689	15	10.851	28	24.981	63	30.48%
30-39.99%	2.976	12	4.446	8	1.899	5	6.285	13	8.184	18	15.606	38	22.99%
40-49.99%	0	0	0	0	0.456	2	0.550	1	1.006	3	1.006	3	2.83%
50% and higher	0	0	0	0	0.450	2	0.500	1	0.950	3	0.950	3	2.67%
NA	0.010	1	0.114	2	0	0	0	0	0	0	0.124	3	0.00%
Total	8.258	30	16.067	37	12.542	25	23.054	45	35.595	70	59.920	137	100.00%
Quick Sale?
	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006
Yes	1.845	3.746	1.646	1.147	5.816	3.885	2.143	6.339	2.824	6.850	6.405	9.077
No	0.150	0.727	0.144	0.364	0.692	4.163	0.845	0	0.392	0.234	0.114	0.374
Total	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450
	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	11.305	21	22.332	39	33.637	60	51.722	109	94.50%
No	1.021	6	5.219	12	1.237	4	0.722	6	1.959	10	8.198	28	5.50%
Total	8.258	30	16.067	37	12.542	25	23.054	45	35.595	70	59.920	137	100.00%
Upsized?
	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006
Yes	0.700	0.087	0.275	0	1.265	2.226	0.600	0	0.846	1.600	0.350	1.910
No	1.295	4.386	1.515	1.275	5.243	5.822	2.388	6.339	2.078	5.484	6.169	7.333
Downsized	0	0	0	0.236	0	0	0	0	0.291	0	0	0.207
Total	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450
	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	3.860	7	5.306	12	9.859	22	14.91%
No	7.196	26	12.340	30	10.805	19	18.987	37	29.791	56	49.327	112	83.69%
Downsized	0	0	0.236	1	0.291	1	0.207	1	0.498	2	0.734	3	1.40%
Total	8.258	30	16.067	37	12.542	25	23.054	45	35.595	70	59.920	137	100.00%
Seniority
	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006
senior	1.745	3.903	0.990	0.750	4.398	5.345	1.887	6.139	2.084	6.841	5.680	7.327
senior subordinated	0.250	0.225	0.125	0	0.761	0.331	0.375	0	0.441	0	0.360	0.874
subordinated	0	0.230	0.375	0	0.450	1.850	0.225	0.200	0.200	0.144	0.465	0.450
preferred	0	0.115	0.300	0.761	0.898	0.522	0.500	0	0.491	0.100	0.014	0.800
Total	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450
	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	19.848	32	29.958	47	47.089	87	84.16%
senior subordinated	0.600	4	1.092	7	0.816	4	1.234	5	2.049	9	3.741	20	5.76%
subordinated	0.605	3	2.300	3	0.625	3	1.059	4	1.684	7	4.589	13	4.73%
preferred	0.415	2	2.182	8	0.991	3	0.913	4	1.904	7	4.501	17	5.35%
Total	8.258	30	16.067	37	12.542	25	23.054	45	35.595	70	59.920	137	100.00%
Contingent Conversion
	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006
Yes	1.350	1.231	0.435	0.623	2.480	1.241	1.095	5.365	1.530	6.651	5.125	5.981
No	0.645	3.242	1.355	0.889	4.028	6.807	1.893	0.974	1.685	0.433	1.394	3.470
Total	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450
	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	7.990	14	17.757	23	25.747	37	33.106	61	72.33%
No	5.242	19	11.724	24	4.552	11	5.297	22	9.848	33	26.814	76	27.67%
Total	8.258	30	16.067	37	12.542	25	23.054	45	35.595	70	59.920	137	100.00%
Mandatory
	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006
Yes	0	0.125	0	0.282	0.692	1.245	0.500	0	0	0	0	0.800
No	1.995	4.348	1.790	1.230	5.816	6.803	2.487	6.339	3.215	7.084	6.519	8.651
Total	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450
	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	0.800	2	1.300	3	3.643	12	3.65%
No	8.133	28	13.849	30	12.042	24	22.254	43	34.296	67	56.278	125	96.35%
Total	8.258	30	16.067	37	12.542	25	23.054	45	35.595	70	59.920	137	100.00%
Greenshoe Exercised?
	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006
Yes	1.445	1.231	1.205	0.398	3.540	4.298	2.263	1.339	1.906	6.651	4.379	5.938
No	0.550	3.242	0.585	1.114	2.968	3.750	0.725	5.000	1.309	0.433	2.140	3.513
Total	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450
	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	5.508	16	16.968	29	22.476	45	34.592	84	63.14%
No	4.377	12	7.832	16	7.034	9	6.086	16	13.120	25	25.329	53	36.86%
Total	8.258	30	16.067	37	12.542	25	23.054	45	35.595	70	59.920	137	100.00%
Versus Talk
	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006
Richer	0	0	0	0	0	0.210	0	0	0	0	0	0
Rich end	0.150	0	0.701	0.525	0.173	0.958	0.500	0.165	0.472	0	0.350	0
Within	1.325	3.042	0.579	0.461	3.010	3.558	2.112	5.000	1.065	2.600	2.860	5.551
Cheap end	0	1.121	0.250	0.225	1.991	0.973	0.375	0.200	1.210	2.950	2.875	1.800
Cheaper	0	0.300	0.125	0	1.265	0	0	0	0.200	1.444	0.345	2.100
NA, other	0.520	0.010	0.135	0.300	0.068	2.350	0	0.974	0.268	0.091	0.089	0
Total	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450
	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	0.350	1	1.488	5	3.995	14	4.18%
Within	4.946	12	7.029	13	8.177	11	11.011	27	19.188	38	31.163	63	53.91%
Cheap end	1.371	6	3.189	9	1.785	6	7.625	6	9.410	12	13.969	27	26.44%
Cheaper	0.425	2	1.265	2	0.200	1	3.889	7	4.089	8	5.779	12	11.49%
NA, other	0.665	6	2.718	7	1.242	3	0.179	4	1.421	7	4.805	20	3.99%
Total	8.258	30	16.067	37	12.542	25	23.054	45	35.595	70	59.920	137	100.00%
Use of Proceeds
	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006
Acquisition	0.700	0	0	0	3.715	0.100	0.845	0	0.200	0.058	0	1.424
Capex	0	0	0	0	0	0.204	0	0	0	0	0	0
GCP	0.770	3.150	0.561	1.211	0.723	3.031	0.375	0.165	1.093	0.433	4.669	2.550
Redeem convertibles	0	0.345	0	0.172	0.201	0	0	1.174	0.850	0.144	0.275	0.317
Refinance	0.375	0.881	0.404	0	1.500	2.502	1.768	0	0.892	0	0.260	1.410
Multiple/Other/NA	0.150	0.097	0.825	0.128	0.368	2.210	0	5.000	0.180	6.450	1.315	3.750
Total	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450
	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	1.481	4	2.526	7	7.041	13	7.10%
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	7.652	15	9.285	22	18.732	46	26.09%
Redeem convertibles	0.345	2	0.374	2	2.024	5	0.736	4	2.760	9	3.478	13	7.75%
Refinance	1.660	9	4.002	8	2.659	7	1.670	7	4.329	14	9.992	31	12.16%
Multiple/Other/NA	1.072	7	2.706	7	5.180	3	11.515	15	16.695	18	20.473	32	46.90%
Total	8.258	30	16.067	37	12.542	25	23.054	45	35.595	70	59.920	137	100.00%
Industry Sector (by SIC code)
	7/2005	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006
Oil and gas (13xx)	0.325	0	0.386	0	1.265	0.113	0	0	0	0	2.750	0.500
Construction (15xx)	0	0	0	0	0	0	0	0	0	0.144	0	0
Manufacturing (2xxx, 3xxx)	0.995	0.326	0.125	0.398	0.526	2.726	0.720	0.974	0.948	4.758	2.400	2.266
Pharmaceuticals (2834-6)	0	0.230	0.315	0.082	0	0.115	1.393	5.000	0.573	2.083	0.625	1.450
Transportation (4xxx)	0	0	0.144	0	0	0.302	0	0	0	0	0	0
Communications (48xx)	0	0.350	0.160	0	1.265	0	0	0	0.374	0	0.305	0.335
Electric, gas, sanitary services (49xx)	0	0	0	0	0	0.500	0.500	0	0.200	0	0	0
Wholesale (5xxx)	0.125	0.115	0.150	0	0.310	1.097	0.375	0.165	0.200	0	0	0.287
Finance, insurance, real estate (6xxx)	0	2.927	0.335	0.507	2.992	3.195	0	0	0.691	0.100	0.014	1.800
Services (7xxx)	0	0.300	0.175	0.525	0.150	0	0	0.200	0.230	0	0.175	2.812
Health services (8xxx)	0.550	0.225	0	0	0	0	0	0	0	0	0.250	0
Total	1.995	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450
	Q3/2005	Count	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	YTD	Count	Total	Count	YTD Share
Oil and gas (13xx)	0.711	3	1.377	3	0	0	3.250	2	3.250	2	5.339	8	9.13%
Construction (15xx)	0	0	0	0	0	0	0.144	1	0.144	1	0.144	1	0.40%
Manufacturing (2xxx, 3xxx)	1.446	6	3.650	10	2.642	9	9.423	18	12.065	27	17.161	43	33.90%
Pharmaceuticals (2834-6)	0.545	2	0.197	2	6.965	6	4.158	9	11.123	15	11.865	19	31.25%
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	0.640	3	1.014	4	2.789	7	2.85%
Electric, gas, sanitary services (49xx)	0	0	0.500	1	0.700	2	0	0	0.700	2	1.200	3	1.97%
Wholesale (5xxx)	0.390	3	1.407	4	0.740	3	0.287	1	1.028	4	2.825	11	2.89%
Finance, insurance, real estate (6xxx)	3.262	7	6.693	12	0.691	2	1.913	4	2.604	6	12.560	25	7.32%
Services (7xxx)	0.475	3	0.675	2	0.430	2	2.987	6	3.417	8	4.567	13	9.60%
Health services (8xxx)	0.775	3	0	0	0	0	0.250	1	0.250	1	1.025	4	0.70%
Total	8.258	30	16.067	37	12.542	25	23.054	45	35.595	70	59.920	137	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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