U.S. PIPE issuance depressed; Lazard top PIPE agent for year to date

• GMP top Canadian market PIPE agent for year to date

• Reedland top U.S. market PIPE agent for quarter

• Cormark number one Canadian market PIPE agent for quarter

By Stephanie N. Rotondo

Portland, Ore., June 30 - U.S. PIPE issuance remained behind 2010's pace through June, though in some respects, Canadian issuance was better.

In the U.S. market, total issuance for the year through June was $9.21 billion raised in 464 deals, according to data compiled by Prospect News. By comparison, issuance by this time in 2010 was $10.63 billion raised in 482 transactions.

For the year, Lazard stole the top agent position from William Blair. Lazard brought four deals for total proceeds of $91 million.

Direct placements were also lagging, with $705 million generated in 55 offerings, compared to $1.35 billion brought in via 77 deals for the same period in 2010. Rodman & Renshaw continued to bring the most direct placements, raising $172 million in 14 registered sales.

In the second quarter, Reedland won top honors with its two deals done in April for proceeds of $100 million. Total issuance for the quarter equaled $4.62 billion in 235 placements, versus $7.19 billion raised in 253 transactions the year before.

The year's top agent was also the highest ranking for the month. Lazard beat out Reedland, raising $50 million via a sale of 5% convertible senior notes due 2021 for Globalstar Inc.

In the Canadian space, total yearly issuance was slightly weaker, though the number of deals was higher. About C$5 billion was taken in in 708 financings since the beginning of 2011. By the same time in 2010, C$5.34 billion had been generated through 590 deals.

GMP took over as Canada's top agent for the year, stealing the spot from Canaccord. GMP raised C$271 million in 16 transactions.

For the quarter, the trend of fewer dollars in more deals continued. Total issuance came to C$2 billion in 344 sales, compared to C$2.09 billion raised in 329 deals the prior year. Cormark was the quarter's winner, bringing seven deals for proceeds of C$82 million.

In June, however, the number of deals, as well as the amount of dollars raised, outweighed the previous year's levels. Total issuance for the month was C$740 million in 108 offerings. In 2010, total issuance was C$396 million in 106 deals.

Mackie was the month's top Canadian agent, taking over from Cormark. Mackie facilitated three financings for proceeds of C$74 million.

Year to date, U.S. market

2010 Comparables

	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Lazard	0.091	4	0.99%
2	Rodman & Renshaw	0.079	16	0.86%	6	0.092	9	0.87%
3	Canaccord	0.070	3	0.76%	42	0.005	1	0.05%
4	William Blair	0.060	4	0.65%
5	Reedland	0.100	2	1.08%
6	Piper Jaffray	0.053	3	0.58%
7	Northland	0.046	3	0.50%
8	Dawson James	0.040	1	0.43%
8	Summer Street Research Partners	0.040	1	0.43%
10	Roth	0.038	6	0.41%	14	0.033	4	0.31%
	Total	9.208	464	10.630	482
	Average size:	0.020	0.022
Year to date, U.S. direct placements
					2010 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Rodman & Renshaw	0.172	14	24.44%	2	0.305	28	22.66%
2	Roth	0.097	3	13.79%	4	0.063	9	4.69%
3	Ladenburg Thalmann	0.055	1	7.81%	19	0.007	1	0.56%
4	Cowen	0.030	1	4.26%
5	Chardan	0.023	5	3.20%	6	0.047	6	3.46%
6	FT Global	0.020	1	2.84%
7	Lazard	0.019	1	2.69%	5	0.055	3	4.04%
8	Religare	0.018	1	2.48%
9	MDB	0.016	2	2.21%
10	Midtown	0.007	1	1.06%
	Total	0.705	55	1.348	77
	Average size:	0.013	0.018
Year to date, Canadian market
					2010 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	GMP	0.271	16	5.42%	3	0.378	7	7.07%
2	Canaccord	0.251	28	5.02%	5	0.206	30	3.86%
3	Dundee	0.227	29	4.54%	8	0.117	17	2.19%
4	TD	0.190	6	3.80%	36	0.010	1	0.19%
5	Cormark	0.140	12	2.80%	15	0.053	8	0.99%
6	CITI Canada	0.101	1	2.02%
7	Mackie Research	0.098	3	1.97%
8	Stifel Nicolaus	0.074	4	1.48%
9	Casimir	0.058	11	1.16%	14	0.053	6	1.00%
10	Raymond James	0.058	7	1.16%	9	0.115	6	2.15%
	Total	5.001	708	5.338	590
	Average size:	0.007	0.009
Second quarter, U.S. market
					2010 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Reedland	0.100	2	2.17%
2	Lazard	0.062	2	1.35%
3	Rodman & Renshaw	0.055	11	1.19%	6	0.052	6	0.73%
4	William Blair	0.045	3	0.97%
5	B. Riley	0.031	1	0.67%
6	Roth	0.028	4	0.61%	25	0.003	1	0.03%
7	MTS Securities	0.024	1	0.52%
8	Enterprise Networks	0.024	1	0.52%
9	Piper Jaffray	0.022	2	0.48%
10	Ladenburg Thalmann	0.016	2	0.35%	16	0.018	2	0.25%
	Total	4.620	235	7.199	253
	Average size:	0.020	0.028
Second quarter, Canadian market
					2010 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Cormark	0.082	7	4.08%	12	0.021	3	1.00%
2	Dundee	0.075	12	3.72%	10	0.022	3	1.06%
3	Mackie	0.074	3	3.72%	11	0.022	7	1.05%
4	Stifel Nicolaus	0.054	2	2.69%
5	Canaccord	0.081	16	4.08%	4	0.090	21	4.30%
6	TD	0.033	2	1.63%	17	0.010	1	0.48%
7	GMP	0.029	3	1.43%	5	0.087	5	4.18%
8	National Bank	0.029	4	1.43%
9	Casimir	0.026	5	1.31%	9	0.025	3	1.18%
10	Desjardins	0.026	2	1.31%	35	0.005	1	0.24%
	Total	2.005	344	2.091	329
	Average size:	0.006	0.006
June, U.S. market
					2010 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Lazard	0.050	1	4.97%
2	B. Riley	0.031	1	3.08%
3	Rodman & Renshaw	0.025	6	2.49%	10	0.018	3	0.77%
4	MTS Securities	0.024	1	2.39%
5	Enterprise Networks	0.024	1	2.38%
6	Roth	0.015	2	1.49%
7	Oppenheimer	0.015	1	1.45%
8	Canaccord	0.015	1	1.45%
9	Chardan	0.011	1	1.09%
10	PBS	0.009	1	0.85%
	Total	1.006	78	2.392	91
	Average size:	0.013	0.026
June, Canadian market
					2010 Comparables
	Agent	Amount	No.	Share	Rank	Amount	No.	Share
1	Mackie	0.074	3	10.07%
2	TD	0.025	1	3.41%	6	0.010	1	2.52%
3	Canaccord	0.019	4	2.64%	4	0.028	6	7.11%
4	Paradigm	0.018	4	2.43%	5	0.020	1	5.07%
5	CIBC	0.016	3	2.17%
6	AltaCorp	0.010	1	1.35%
7	NCP	0.010	1	1.35%
8	RBC	0.010	1	1.35%	7	0.009	1	2.27%
9	Haywood	0.007	3	0.95%
10	FirstEnergy	0.006	2	0.81%
10	Fraser Mackenzie	0.006	2	0.81%
	Total	0.740	108	0.396	106
	Average size:	0.007	0.004
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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