| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for Alder Biopharmaceuticals Inc. > News item |
Morning Commentary: Slow morning for convertibles; Western Digital loses steam
By Abigail W. Adams
Portland, Me., Feb. 1 – The secondary market was off to a slow start on Thursday with limited trading activity after an influx of $1.65 billion in new paper on Wednesday.
Western Digital Corp.’s 1.5% convertible notes due 2024 were down about a 1/8 point dollar-neutral in early trading Thursday after a 1.5 point expansion on their market debut Wednesday, a market source said.
The 1.5% notes were at 101.75 bid, 102.125 offer versus an equity price of $87.94 in early trading Thursday.
However, trading activity surrounding the landmark deal tempered with only four trades on the tape early in the session, a market source said.
“It was a blow out yesterday,” a market source said, with bids for the new notes at 101 before the market opened.
The new notes dominated trading activity on Wednesday with some hedge players flipping the notes to outright investors hungry for investment-grade convertible bonds.
Western Digital’s convertible bond offering “was done as a happy meal,” a market source said. Concurrent to the pricing of 1.5% notes, Western Digital agreed to repurchase $153.5 million of company shares.
While the deal attracted both outright and hedge players, “because it’s investment grade a lot of outrights want to be involved and outright funds will pay up to fill up their coffers,” the source said.
Alder BioPharmaceuticals Inc.’s recently priced 2.5% convertible notes due 2025 continued to struggle in early trading Thursday. The notes, which priced after the market close on Monday, remained in the 97 to 98 range in scattered trading early in Thursday’s session.
Alder stock up was up 1.76% to $14.40.
The 2.5% notes have been in the 97 to 98 range since their market debut on Tuesday.
© 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.