U.S., Canadian issuance falls behind year-ago numbers; Morgan Stanley top U.S. placement agent

Peters wins as year’s top agent in Canada

By Stephanie N. Rotondo

Phoenix, Oct. 31 – PIPE issuance is lagging pretty much across the board, according to data compiled by Prospect News.

In the U.S. space, year-to-date issuance is $13.32 billion raised via 590 deals, compared with $17.27 billion taken in from 620 deals the year before.

For the month, issuance was $1.21 billion from 55 private equity transactions. In October 2013, issuance was $3.36 billion from 66 sales.

The direct placement market, however, is outpacing year-ago comparables. There have been 67 registered direct offerings so far this year, bringing in total proceeds of $1.65 billion. Last year, just 63 deals had been done, raising proceeds of $1.34 billion.

In the Canadian PIPE market, issuers have taken in C$4.65 billion from 535 deals. In the previous year, issuers raised C$4.99 billion from 526 transactions.

October saw 47 deals getting done, the same amount as the year before, but total proceeds fell to C$266 million from C$673 million.

Morgan Stanley won as the year’s top placement agent in the United States, having facilitated four deals that raised $810 million. Northland won the honors for the month, raising $110 million via three transactions in October.

RS Platou meantime held first place for registered direct offerings. The firm brought in $362 million from three PIPE deals.

In Canada, Peters took the top spot for the year, facilitating four deals that brought in C$218 million. Canaccord Genuity was the month’s top agent, raising C$40 million from three deals.

U.S. market, year to date

2013 Comparables

	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	0.810	4	6.08%	15	0.047	1	0.27%
2	Friedman Billings	0.190	1	1.43%
3	Cowen	0.139	7	1.04%	31	0.025	1	0.14%
4	Northland	0.125	6	0.94%
5	Wells Fargo	0.120	1	0.90%
6	BMO	0.090	3	0.68%
7	Barclays	0.086	3	0.64%
8	Maxim	0.079	7	0.59%	44	0.014	3	0.08%
9	Craig-Hallum	0.059	5	0.44%	24	0.030	4	0.18%
9	FIG Partners	0.059	4	0.44%	19	0.037	3	0.21%
	Total	13.316	590	17.265	620
	Average size:	0.023	0.028
U.S. direct placements, year to date
					2013 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	RS Platou	0.364	3	17.11%	1	0.365	6	26.08%
2	Pareto	0.175	1	8.23%
3	DNB	0.114	1	5.35%
4	FT Global	0.112	5	5.27%	8	0.026	1	1.88%
5	H.C. Wainwright	0.111	13	5.24%	4	0.057	8	4.09%
6	Fearnley	0.075	1	3.53%
6	Maxim	0.075	6	3.51%
8	Roth	0.059	8	2.78%	2	0.114	9	8.16%
9	William Blair	0.048	3	2.26%	23	0.004	1	0.31%
10	Chardan	0.038	2	1.79%	11	0.013	3	0.92%
	Total	1.647	67	1.344	63
	Average size:	0.025	0.021
Canadian market, year to date
					2013 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Peters	0.218	4	4.70%	7	0.097	3	1.95%
2	GMP	0.163	7	3.51%	5	0.141	9	2.82%
3	Cormark	0.160	11	3.45%	6	0.100	14	2.00%
4	Canaccord Genuity	0.126	15	2.70%	2	0.162	12	3.23%
5	Scotia	0.081	6	1.75%	10	0.045	2	0.90%
6	BMO	0.074	4	1.59%	8	0.055	3	1.10%
7	Dundee	0.070	10	1.50%	1	0.234	11	4.69%
8	National Bank Financial 0.068	7	1.47%	9	0.050	4	1.01%
9	Macquarie	0.063	6	1.35%	19	0.025	6	0.51%
10	Bloom Burton	0.060	1	1.29%	50	0.002	1	0.04%
	Total	4.651	535	4.998	526
	Average size:	0.009	0.010
U.S. market, October
					2013 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Northland	0.110	3	9.13%
2	BMO	0.050	1	4.15%
3	JPMorgan	0.023	1	1.87%
3	William Blair	0.023	1	1.87%
5	Non-brokered	0.021	2	1.76%	2	0.040	5	1.20%
6	Riverbank Capital	0.015	1	1.25%
7	Craig-Hallum	0.011	1	0.92%
8	Aegis	0.004	1	0.36%
9	H.C Wainwright	0.003	1	0.21%
	Total	1.205	55	3.358	66
	Average size:	0.022	0.051
Canadian market, October
					2013 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Canaccord Genuity	0.040	3	15.05%	8	0.002	1	0.33%
2	Cormark	0.020	2	7.52%	7	0.004	1	0.62%
3	Scotia	0.020	3	7.51%
4	Dundee	0.014	2	5.30%	1	0.175	4	26.03%
5	Clarus	0.010	1	3.76%
5	Desjardins	0.010	1	3.76%
5	FirstEnergy Capital Corp. 0.010	1	3.76%
5	GMP	0.010	1	3.76%	4	0.019	1	2.89%
5	National Bank Financial 0.010	1	3.76%
5	TD	0.010	1	3.76%
	Total	0.266	47	0.673	47
	Average size:	0.006	0.014
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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