Citigroup top U.S. market convertibles underwriter for year to date

• U.S. convertibles issuance reaches $18.09 billion for year to date

• May U.S. convertibles issuance totals $2.83 billion in 11 deals

By Rebecca Melvin

New York, May 31 - Citigroup Global Markets Inc. remained the top underwriter of convertible debt for the year to date through May, but J.P. Morgan Securities LLC was the stand out bookrunner for May alone, bringing more than a third of new paper in five deals for the month just ending, according to Prospect News data.

Total U.S. new issuance for the year to date has reached $18.09 billion in 53 deals, which is up from $15.26 billion in 42 deals for the year to date through April and higher compared to $14.43 billion in 41 deals for the comparable January through May period of 2010.

For May alone, there was $2.83 billion in new issuance in 11 new deals, which was better than April's anemic $1.3 billion in five deals.

For the year so far, Citigroup has underwritten $3.43 billion of new issuance in 13 deals, accounting for 19% of total volume. That total slipped from 22% off all issuance for the year to date through April. J.P. Morgan's portion of the convertible pie, on the other hand, has risen to 18% for the year to date through May, compared to 14% for the year to date through April.

Goldman Sachs & Co. remained in second place on the league tables with $3.42 billion in 11 deals, for 19% of the total.

Global issuance of convertible securities for the year to date totaled $35.22 billion in 115 deals, which is up compared to $28.38 billion in 103 deals for the same period in 2010

Among May's notable deals, Lam Research Corp. priced an upsized $750 million of five- and seven-year convertibles - which was later raised to $900 million after the greenshoe was exercised. That deal was brought to market by joint bookrunners JP Morgan and Goldman Sachs & Co.

Novellus Systems Inc. priced an upsized $600 million of 30-year convertibles which was later raised to $700 million after the greenshoe was exercised. That deal was brought by JP Morgan and Bank of America Merrill Lynch.

Both companies are in the semiconductor equipment sector. Vishay Intertechnology Inc. was another company in a related field of semiconductor and electronics components. It priced a $150 million convertible deal via JP Morgan.

JP Morgan also brought Alaska Communications Systems Group Inc.'s $120 million of seven-year convertible notes at the beginning of the month along with Oppenheimer & Co. Inc. and Evercore as co-managers.

Alaska Communications' underlying shares have dropped since the deal and haven't yet recovered, which is also true of Lam Research, Vishay and Callidus Software Inc., which priced $70 million of five-year convertible notes via Morgan Stanley & Co. Inc.

But PDL BioPharma Inc.'s stock price has gained since it priced $155.25 million of five-year notes May 10 as have shares of Iconix Brand Group Inc. after it priced $257 million of five-year senior notes via Barclays Capital Inc. and Goldman Sachs & Co., and Akorn Inc., which has risen since it Akorn priced $100 million of five-year notes via Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Piper Jaffray & Co. on May 26.

Year to date, U.S. market

2010 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	3.425	13	18.93%	9	0.668	8	4.63%
2	Goldman Sachs	3.419	11	18.90%	6	1.102	5	7.64%
3	JPMorgan	3.248	22	17.95%	1	2.855	17	19.78%
4	Bank of America	1.648	12	9.11%	2	2.039	12	14.13%
5	Morgan Stanley	1.190	7	6.58%	3	1.685	6	11.68%
6	UBS	0.953	6	5.27%	11	0.324	4	2.24%
7	Barclays	0.867	7	4.79%	10	0.609	5	4.22%
8	Deutsche Bank	0.687	9	3.80%	5	1.233	8	8.54%
9	Credit Suisse	0.449	4	2.48%	7	0.906	7	6.28%
10	Wells Fargo	0.371	4	2.05%
	Total	18.092	53	14.433	41
	Average size:	0.341	0.352
Year to date, global
					2010 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	4.673	15	13.27%	7	1.317	7	4.64%
2	JPMorgan	4.216	29	11.97%	1	4.412	25	15.55%
3	Citigroup	4.080	16	11.58%	6	1.353	13	4.77%
4	Morgan Stanley	2.617	12	7.43%	2	3.768	12	13.28%
5	Bank of America	2.002	14	5.68%	3	2.815	15	9.92%
6	Barclays	1.305	10	3.70%	11	0.773	7	2.72%
7	UBS	1.174	8	3.33%	10	0.780	9	2.75%
8	Credit Suisse	1.145	9	3.25%	4	2.190	17	7.72%
9	BNP	1.058	8	3.00%	12	0.479	5	1.69%
10	HSBC	0.885	7	2.51%	24	0.194	2	0.69%
	Total	35.221	115	28.378	103
	Average size:	0.306	0.276
May, U.S. market
					2010 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	1.070	5	37.80%
2	Goldman Sachs	0.600	3	21.20%	4	0.172	1	7.69%
3	Bank of America	0.505	2	17.85%	2	0.345	2	15.37%
4	Barclays	0.150	1	5.30%
5	Credit Suisse	0.125	1	4.42%	6	0.037	1	1.67%
6	RBC	0.100	1	3.53%
6	Scotia	0.100	1	3.53%
8	Morgan Stanley	0.081	1	2.84%
9	Citigroup	0.033	1	1.18%	3	0.210	2	9.36%
9	Piper Jaffray	0.033	1	1.18%
	Total	2.831	11	2.244	6
	Average size:	0.257	0.374	Year to date, U.S. market
					2010 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	3.425	13	18.93%	9	0.668	8	4.63%
2	Goldman Sachs	3.419	11	18.90%	6	1.102	5	7.64%
3	JPMorgan	3.248	22	17.95%	1	2.855	17	19.78%
4	Bank of America	1.648	12	9.11%	2	2.039	12	14.13%
5	Morgan Stanley	1.190	7	6.58%	3	1.685	6	11.68%
6	UBS	0.953	6	5.27%	11	0.324	4	2.24%
7	Barclays	0.867	7	4.79%	10	0.609	5	4.22%
8	Deutsche Bank	0.687	9	3.80%	5	1.233	8	8.54%
9	Credit Suisse	0.449	4	2.48%	7	0.906	7	6.28%
10	Wells Fargo	0.371	4	2.05%
	Total	18.092	53	14.433	41
	Average size:	0.341	0.352
Year to date, global
					2010 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	4.673	15	13.27%	7	1.317	7	4.64%
2	JPMorgan	4.216	29	11.97%	1	4.412	25	15.55%
3	Citigroup	4.080	16	11.58%	6	1.353	13	4.77%
4	Morgan Stanley	2.617	12	7.43%	2	3.768	12	13.28%
5	Bank of America	2.002	14	5.68%	3	2.815	15	9.92%
6	Barclays	1.305	10	3.70%	11	0.773	7	2.72%
7	UBS	1.174	8	3.33%	10	0.780	9	2.75%
8	Credit Suisse	1.145	9	3.25%	4	2.190	17	7.72%
9	BNP	1.058	8	3.00%	12	0.479	5	1.69%
10	HSBC	0.885	7	2.51%	24	0.194	2	0.69%
	Total	35.221	115	28.378	103
	Average size:	0.306	0.276
May, U.S. market
					2010 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	1.070	5	37.80%
2	Goldman Sachs	0.600	3	21.20%	4	0.172	1	7.69%
3	Bank of America	0.505	2	17.85%	2	0.345	2	15.37%
4	Barclays	0.150	1	5.30%
5	Credit Suisse	0.125	1	4.42%	6	0.037	1	1.67%
6	RBC	0.100	1	3.53%
6	Scotia	0.100	1	3.53%
8	Morgan Stanley	0.081	1	2.84%
9	Citigroup	0.033	1	1.18%	3	0.210	2	9.36%
9	Piper Jaffray	0.033	1	1.18%
	Total	2.831	11	2.244	6
	Average size:	0.257	0.374
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 (for U.S. deals), or all underwritten offerings (global deals).

• 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.

• Structured products 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.