Morning Commentary: New Ironwood adds a point on swap; new Avid issue ‘comes in’ a bit

By Rebecca Melvin

New York, June 10 – Ironwood Pharmaceuticals Inc.’s new 2.25% convertibles traded up about a point on swap early Wednesday after the Cambridge, Mass.-based pharmaceutical company priced $300 million of the seven-year senior notes at the rich end and through the rich end of talk, a New York-based trader said.

The new Ironwood bonds were seen trading at 101 last on an absolute basis with the stock down a penny, the trader said.

Also in the market, Avid Technology Inc.’s new 2% convertibles “came in a little bit,” a trader said at late morning, quoting the new notes at 100 to 100.625. Shares were down 15 cents, or 0.9% at $16.10. The bonds earlier had been plus 0.25 point, the trader said.

Overall convertibles were a bit firmer on Wednesday as bond markets, which were weak on Tuesday, were buoyed somewhat by a rally in the equity market.

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