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

Total year-to-date issuance: $45.274 billion in 443 deals

Amount ($ billions) Number

Regular convertibles 38.029 76

Investment bank synthetics 7.245 367

Total 45.274 443

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

	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006
0%	0.010	0	0.046	0.068	0	0	0.974	0	0	0	0	0
0.01%-0.99%	0	0	0	0	0	0.575	5.000	0	1.600	2.750	1.100	0
1%-1.99%	0	0.160	0	0.250	0.095	0.968	0	0.400	5.150	1.425	2.150	0
2%-2.99%	0.906	0.250	0.225	0.690	2.746	0.345	0	0.926	0	1.505	0.794	0.300
3%-3.99%	0.855	0.715	0.398	1.415	0.998	0.600	0	0.830	0.144	0.280	2.319	0.710
4%-4.99%	0	0.300	0	0.361	0.350	0	0	0.550	0.058	0.345	1.575	1.424
5%-5.99%	0.115	0.146	0.525	0.950	0.615	0.500	0	0.291	0	0.125	0.300	0
6% and higher	0.087	0.219	0.318	0.773	1.245	0	0.365	0.218	0.133	0.089	0.500	0
Floater	2.500	0	0	2.000	2.000	0	0	0	0	0	0.713	0
Total	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450	2.434
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
0%	0.114	2	0.974	1	0	0	0	0	0.974	1	1.098	4	2.56%
0.01%-0.99%	0	0	5.575	3	5.450	5	0	0	11.025	8	11.025	8	28.99%
1%-1.99%	0.345	2	1.367	3	8.725	8	0	0	10.092	11	10.598	14	26.54%
2%-2.99%	3.661	7	1.271	5	2.300	9	0.300	1	3.871	15	8.688	27	10.18%
3%-3.99%	2.810	5	1.430	5	2.743	9	0.710	2	4.883	16	9.262	28	12.84%
4%-4.99%	0.711	4	0.550	2	1.978	5	1.424	3	3.951	10	4.963	15	10.39%
5%-5.99%	2.090	8	0.791	2	0.425	2	0	0	1.216	4	3.566	15	3.20%
6% and higher	2.336	7	0.583	4	0.722	5	0	0	1.305	9	3.947	19	3.42%
Floater	4.000	2	0	0	0.713	2	0	0	0.713	2	7.213	5	1.87%
Total	16.067	37	12.542	25	23.054	45	2.134	5	38.029	76	60.359	135	100.00%
Premium
	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006
19.99% and lower	0.087	0.135	0.307	0	1.600	0.575	5.000	0	6.091	0.395	2.544	0.130
20%-29.99%	3.501	0.529	0.461	3.910	5.229	2.188	0	1.974	0.850	1.005	4.834	2.004
30-39.99%	0.875	1.126	0.698	2.530	1.218	0.225	0.974	0.700	0.144	4.619	1.522	0
40-49.99%	0	0	0	0	0	0	0.165	0.291	0	0	0.550	0.300
50% and higher	0	0	0	0	0	0	0.200	0.250	0	0.500	0	0
NA	0.010	0	0.046	0.068	0	0	0	0	0	0	0	0
Total	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450	2.434
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
19.99% and lower	1.907	3	5.575	3	9.030	15	0.130	1	14.735	19	16.864	25	38.75%
20%-29.99%	9.600	24	4.162	13	6.689	15	2.004	4	12.854	32	26.484	65	33.80%
30-39.99%	4.446	8	1.899	5	6.285	13	0	0	8.184	18	14.631	35	21.52%
40-49.99%	0	0	0.456	2	0.550	1	0.300	1	1.306	4	1.306	4	3.43%
50% and higher	0	0	0.450	2	0.500	1	0	0	0.950	3	0.950	3	2.50%
NA	0.114	2	0	0	0	0	0	0	0	0	0.124	3	0.00%
Total	16.067	37	12.542	25	23.054	45	2.434	6	38.029	76	60.359	135	100.00%
Quick Sale?
	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006
Yes	3.746	1.646	1.147	5.816	3.885	2.143	6.339	2.824	6.850	6.405	9.077	2.434
No	0.727	0.144	0.364	0.692	4.163	0.845	0	0.392	0.234	0.114	0.374	0
Total	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450	2.434
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	10.848	25	11.305	21	22.332	39	2.434	6	36.070	66	52.311	108	94.85%
No	5.219	12	1.237	4	0.722	6	0	0	1.959	10	8.048	27	5.15%
Total	16.067	37	12.542	25	23.054	45	2.434	6	38.029	76	60.359	135	100.00%
Upsized?
	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006
Yes	0.087	0.275	0	1.265	2.226	0.600	0	0.846	1.600	0.350	1.910	0
No	4.386	1.515	1.275	5.243	5.822	2.388	6.339	2.078	5.484	6.169	7.333	2.434
Downsized	0	0	0.236	0	0	0	0	0.291	0	0	0.207	0
Total	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450	2.434
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	3.491	6	1.446	5	3.860	7	0	0	5.306	12	9.159	21	13.95%
No	12.340	30	10.805	19	18.987	37	2.434	6	32.225	62	50.466	111	84.74%
Downsized	0.236	1	0.291	1	0.207	1	0	0	0.498	2	0.734	3	1.31%
Total	16.067	37	12.542	25	23.054	45	2.434	6	38.029	76	60.359	135	100.00%
Seniority
	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006
senior	3.903	0.990	0.750	4.398	5.345	1.887	6.139	2.084	6.841	5.680	7.327	1.869
senior subordinated	0.225	0.125	0	0.761	0.331	0.375	0	0.441	0	0.360	0.874	0.300
subordinated	0.230	0.375	0	0.450	1.850	0.225	0.200	0.200	0.144	0.465	0.450	0.135
preferred	0.115	0.300	0.761	0.898	0.522	0.500	0	0.491	0.100	0.014	0.800	0.130
Total	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450	2.434
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
senior	10.493	19	10.110	15	19.848	32	1.869	3	31.827	50	47.212	84	83.69%
senior subordinated	1.092	7	0.816	4	1.234	5	0.300	1	2.349	10	3.792	19	6.18%
subordinated	2.300	3	0.625	3	1.059	4	0.135	1	1.819	8	4.724	14	4.78%
preferred	2.182	8	0.991	3	0.913	4	0.130	1	2.034	8	4.631	18	5.35%
Total	16.067	37	12.542	25	23.054	45	2.434	6	38.029	76	60.359	135	100.00%
Contingent Conversion
	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006
Yes	1.231	0.435	0.623	2.480	1.241	1.095	5.365	1.530	6.651	5.125	7.131	1.003
No	3.242	1.355	0.889	4.028	6.807	1.893	0.974	1.685	0.433	1.394	2.320	1.431
Total	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450	2.434
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	4.343	13	7.990	14	18.907	25	1.003	3	27.900	42	33.909	62	73.37%
No	11.724	24	4.552	11	4.147	20	1.431	3	10.129	34	26.450	73	26.63%
Total	16.067	37	12.542	25	23.054	45	2.434	6	38.029	76	60.359	135	100.00%
Mandatory
	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006
Yes	0.125	0	0.282	0.692	1.245	0.500	0	0	0	0	0.800	0
No	4.348	1.790	1.230	5.816	6.803	2.487	6.339	3.215	7.084	6.519	8.651	2.434
Total	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450	2.434
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	2.218	7	0.500	1	0.800	2	0	0	1.300	3	3.643	12	3.42%
No	13.849	30	12.042	24	22.254	43	2.434	6	36.730	73	56.716	123	96.58%
Total	16.067	37	12.542	25	23.054	45	2.434	6	38.029	76	60.359	135	100.00%
Greenshoe Exercised?
	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006
Yes	1.231	1.205	0.398	3.540	4.298	2.263	1.339	1.906	6.651	4.379	5.938	1.278
No	3.242	0.585	1.114	2.968	3.750	0.725	5.000	1.309	0.433	2.140	3.513	1.156
Total	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450	2.434
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	8.235	21	5.508	16	16.968	29	1.278	3	23.753	48	34.425	81	62.46%
No	7.832	16	7.034	9	6.086	16	1.156	3	14.276	28	25.935	54	37.54%
Total	16.067	37	12.542	25	23.054	45	2.434	6	38.029	76	60.359	135	100.00%
Versus Talk
	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006
Richer	0	0	0	0	0.210	0	0	0	0	0	0	0
Rich end	0	0.701	0.525	0.173	0.958	0.500	0.165	0.472	0	0.350	0	0
Within	3.042	0.579	0.461	3.010	3.558	2.112	5.000	1.065	2.600	2.860	5.551	1.161
Cheap end	1.121	0.250	0.225	1.991	0.973	0.375	0.200	1.210	2.950	2.875	1.800	0.705
Cheaper	0.300	0.125	0	1.265	0	0	0	0.200	1.444	0.345	2.100	0.568
NA	0.010	0.135	0.300	0.068	2.350	0	0.974	0.268	0.091	0.089	0	0
Total	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450	2.434
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Richer	0.210	1	0	0	0	0	0	0	0	0	0.210	1	0.00%
Rich end	1.656	5	1.137	4	0.350	1	0	0	1.488	5	3.845	13	3.91%
Within	7.029	13	8.177	11	11.011	27	1.161	3	20.349	41	30.998	62	53.51%
Cheap end	3.189	9	1.785	6	7.625	6	0.705	2	10.115	14	14.674	29	26.60%
Cheaper	1.265	2	0.200	1	3.889	7	0.568	1	4.657	9	6.347	13	12.25%
NA	2.718	7	1.242	3	0.179	4	0	0	1.421	7	4.285	17	3.74%
Total	16.067	37	12.542	25	23.054	45	2.434	6	38.029	76	60.359	135	100.00%
Use of Proceeds
	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006
Acquisition	0	0	0	3.715	0.100	0.845	0	0.200	0.058	0	1.424	0
Capex	0	0	0	0	0.204	0	0	0	0	0	0	0
GCP	3.150	0.561	1.211	0.723	3.031	0.375	0.165	1.093	0.433	4.669	2.550	0.435
No proceeds	0	0	0	0	0	0	0	0	0	0	0	0.726
Redeem convertibles	0.345	0	0.172	0.201	0	0	1.174	0.850	0.144	0.275	0.317	0
Refinance	0.881	0.404	0	1.500	2.502	1.768	0	0.892	0	0.260	1.410	0.568
Multiple/Other/NA	0.097	0.825	0.128	0.368	2.210	0	5.000	0.180	6.450	1.315	3.750	0.705
Total	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450	2.434
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Acquisition	3.815	5	1.045	3	1.481	4	0	0	2.526	7	6.341	12	6.64%
Capex	0.204	2	0	0	0	0	0	0	0	0	0.204	2	0.00%
GCP	4.966	13	1.633	7	7.652	15	0.435	2	9.720	24	18.397	45	25.56%
No proceeds	0	0	0	0	0	0	0.726	1	0.726	1	0.726	1	1.91%
Redeem convertibles	0.374	2	2.024	5	0.736	4	0	0	2.760	9	3.478	13	7.26%
Refinance	4.002	8	2.659	7	1.670	7	0.568	1	4.897	15	10.184	29	12.87%
Multiple/Other/NA	2.706	7	5.180	3	11.515	15	0.705	2	17.400	20	21.028	33	45.75%
Total	16.067	37	12.542	25	23.054	45	2.434	6	38.029	76	60.359	135	100.00%
Industry Sector (by SIC code)
	8/2005	9/2005	10/2005	11/2005	12/2005	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006
Oil and gas (13xx)	0	0.386	0	1.265	0.113	0	0	0	0	2.750	0.500	0
Construction (15xx)	0	0	0	0	0	0	0	0	0.144	0	0	0
Manufacturing (2xxx, 3xxx)	0.326	0.125	0.398	0.526	2.726	0.720	0.974	0.948	4.758	2.400	2.266	0.300
Pharmaceuticals (2834-6)	0.230	0.315	0.082	0	0.115	1.393	5.000	0.573	2.083	0.625	1.450	0.135
Transportation (4xxx)	0	0.144	0	0	0.302	0	0	0	0	0	0	0.726
Communications (48xx)	0.350	0.160	0	1.265	0	0	0	0.374	0	0.305	0.335	0
Electric, gas, sanitary services (49xx)	0	0	0	0	0.500	0.500	0	0.200	0	0	0	0
Wholesale (5xxx)	0.115	0.150	0	0.310	1.097	0.375	0.165	0.200	0	0	0.287	0
Finance, insurance, real estate (6xxx)	2.927	0.335	0.507	2.992	3.195	0	0	0.691	0.100	0.014	1.800	1.273
Services (7xxx)	0.300	0.175	0.525	0.150	0	0	0.200	0.230	0	0.175	2.812	0
Health services (8xxx)	0.225	0	0	0	0	0	0	0	0	0.250	0	0
Total	4.473	1.790	1.511	6.508	8.048	2.987	6.339	3.215	7.084	6.519	9.450	2.434
	Q4/2005	Count	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	YTD	Count	Total	Count	YTD Share
Oil and gas (13xx)	1.377	3	0	0	3.250	2	0	0	3.250	2	5.014	7	8.55%
Construction (15xx)	0	0	0	0	0.144	1	0	0	0.144	1	0.144	1	0.38%
Manufacturing (2xxx, 3xxx)	3.650	10	2.642	9	9.423	18	0.300	1	12.365	28	16.466	40	32.51%
Pharmaceuticals (2834-6)	0.197	2	6.965	6	4.158	9	0.135	1	11.258	16	12.000	20	29.60%
Transportation (4xxx)	0.302	2	0	0	0	0	0.726	1	0.726	1	1.172	4	1.91%
Communications (48xx)	1.265	1	0.374	1	0.640	3	0	0	1.014	4	2.789	7	2.67%
Electric, gas, sanitary services (49xx)	0.500	1	0.700	2	0	0	0	0	0.700	2	1.200	3	1.84%
Wholesale (5xxx)	1.407	4	0.740	3	0.287	1	0	0	1.028	4	2.700	10	2.70%
Finance, insurance, real estate (6xxx)	6.693	12	0.691	2	1.913	4	1.273	3	3.877	9	13.832	28	10.19%
Services (7xxx)	0.675	2	0.430	2	2.987	6	0	0	3.417	8	4.567	13	8.99%
Health services (8xxx)	0	0	0	0	0.250	1	0	0	0.250	1	0.475	2	0.66%
Total	16.067	37	12.542	25	23.054	45	2.434	6	38.029	76	60.359	135	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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