U.S. issuers undertake fewer deals; Credit Suisse ranks as top agent for month, year

Macquarie year’s top agent in Canada

By Stephanie N. Rotondo

Phoenix, Feb. 27 – U.S. PIPE issuance for the year and the month were lagging behind year-ago figures, according to data compiled by Prospect News.

During the year to date, issuers have raised $1.34 billion via 95 private equity placements. That compares with $2.77 billion raised from 116 transactions during the same period of the year before.

In February, $743 million was taken in 51 private placements. In the same month of 2014, $2.19 billion had been generated from 52 offerings.

Credit Suisse came in as the top placement agent for U.S. issuers for both the year thus far and for February. The investment bank raised $231 million for Parsley Energy Inc. by selling class A common shares.

In direct placements, the numbers were also below those seen in the previous year. Since the beginning of 2015, there have been 12 registered direct offerings, which have brought in $131 million. By comparison, 19 direct sales had been completed for proceeds of $860 million during the first two months of 2014.

In the registered direct space, it was Barclays that took the top placement agent spot, having facilitated a $50 million offering of class A common stock for Jones Energy Inc.

In the Canadian PIPE market, issuance levels were mixed. Year to date, C$1.07 billion was taken in from 59 transactions, up from C$695 million in 103 deals the year before.

For the month, 31 deals were done, bringing in C$254 million. The year before, C$338 million was taken in from 59 deals.

Canada’s top placement agent for the year was Macquarie, which undertook three deals that brought in C$105 million. Clarus meantime won first place for the month, raising C$50 million via a sale of common stock for Semafo Inc.

U.S. market, year to date

2014 Comparables

	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Credit Suisse	0.231	1	17.27%
2	Sandler O'Neill	0.120	1	8.95%
3	Heartland Bank	0.050	1	3.74%
3	Reedland	0.050	1	3.74%
5	Jefferies	0.050	1	3.73%
6	Source Capital Group	0.017	1	1.27%
7	Laidlaw	0.008	1	0.58%
8	H.C. Wainwright	0.007	1	0.53%
9	Lake Street	0.006	2	0.44%	12	0.009	2	0.31%
10	Ladenburg Thalmann	0.004	1	0.31%	19	0.003	1	0.11%
	Total	1.337	95	2.774	116
	Average size:	0.014	0.024
U.S. direct placements, year to date
					2014 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Barclays	0.050	1	38.04%
2	H.C. Wainwright	0.013	2	10.24%	5	0.027	3	3.18%
3	C. K. Cooper	0.005	2	3.73%
4	Northland	0.004	1	2.69%	13	0.002	1	0.22%
4	Roth	0.004	1	2.69%	6	0.025	2	2.93%
6	MLV	0.002	1	1.52%
	Total	0.131	12	0.860	19
	Average size:	0.011	0.045
Canadian market, year to date
					2014 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Macquarie	0.105	3	9.82%	2	0.030	2	4.25%
2	RBC	0.100	1	9.32%	8	0.014	1	2.01%
3	Clarus	0.050	1	4.69%	12	0.010	1	1.44%
4	Dundee	0.025	1	2.31%	10	0.013	3	1.87%
5	Canaccord Genuity	0.017	2	1.61%	4	0.025	1	3.60%
6	Cormark	0.011	2	0.98%	14	0.006	2	0.84%
6	Raymond James	0.011	2	0.98%
8	Haywood	0.007	1	0.65%
9	Desjardins	0.005	1	0.47%	4	0.025	1	3.60%
10	Euro Pacific Canada	0.003	1	0.28%
	Total	1.073	59	0.695	103
	Average size:	0.018	0.007
U.S. market, February
					2014 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Credit Suisse	0.231	1	31.07%
2	Reedland	0.050	1	6.73%
3	Jefferies	0.050	1	6.71%
4	Source Capital Group	0.017	1	2.29%
5	H.C. Wainwright	0.007	1	0.95%
6	Lake Street	0.006	2	0.79%
7	Ladenburg Thalmann	0.004	1	0.56%
8	Roth	0.003	1	0.41%
9	Maxim	0.003	1	0.40%
	Total	0.743	51	2.193	52
	Average size:	0.015	0.042
Canadian market, February
					2014 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Clarus	0.050	1	19.79%
2	Cormark	0.011	2	4.13%	13	0.003	1	0.74%
2	Raymond James	0.011	2	4.13%
4	Haywood	0.007	1	2.75%
5	Macquarie	0.005	2	2.08%	6	0.011	1	3.24%
6	Canaccord Genuity	0.005	1	1.97%
6	Desjardins	0.005	1	1.97%
8	Mackie	0.002	1	0.75%	7	0.010	2	2.81%
9	Marquest	0.002	1	0.59%
9	Secutor	0.002	1	0.59%	12	0.003	1	0.79%
	Total	0.254	31	0.338	59
	Average size:	0.008	0.006
Prospect News PIPE Agent Rankings

Criteria

• The tables include all dollar-denominated offerings (or Canadian dollar-denominated offerings for the Canadian tables) sold as private placements, excluding Rule 144A deals, or direct placements.

• Stock must be listed on a U.S. exchange or trade on the Bulletin Board or Pink Sheets (U.S. issues).

• Offerings are included in the time period in which they price, if known, otherwise by settlement date or announcement date.

• Amounts are based on the total sales price (face amount or number of shares multiplied by the offering price).

• Each tranche is counted as a separate deal.

• Includes stock, securities convertible into stock, units of these securities and equity lines of credit.

• Minimum issue size $1 million (all tranches combined) or C$1 million.

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