Morning Commentary: NXP expands after merger news; American Realty Capital active, better

By Rebecca Melvin

New York, March 2 – NXP Semiconductors NV’s 1% convertibles jumped on an outright basis and expanded on a dollar-neutral basis early Monday after news that the Dutch semiconductor components company has agreed to buy Freescale Semiconductor Ltd. for about $16.7 billion, including debt, according to a statement.

The deal is expected to be completed in the second half of this year.

The NXP convertibles were up about 7 points on an outright basis and up 0.5 point on a dollar-neutral, or hedged, basis, a New York-based trader said.

NXP shares were up $14.07, or 16.6%, at $98.96.

Also in early dealings, American Realty Capital Properties Inc.’s convertibles were trading actively and higher after the real estate investment trust filed restated results that showed wider losses for 2013 and the second quarter of 2014.

The restatements were expected after the company disclosed accounting errors last fall and didn’t appear to reveal any bigger issues.

American Realty Capital’s 3.75% convertibles due 2020 traded up 3.25 points to 97.75, and the company’s 3% convertibles due 2018 added 1.375 points to 97, according to Trace data.

American Realty Capital’s shares were up 35 cents, or 3.6%, at $10.16 in trading Monday morning.

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