Morning Commentary: Secondary space grinds to a halt; Acorda one of few names on tape

By Abigail W. Adams

Portland, Me., Dec. 24 – Markets were grinding tighter throughout December. However, they ground to a halt on Christmas Eve, and the convertibles secondary space was no exception.

There was approximately $7 million in reported volume on the tape about one hour into Tuesday’s session.

“There is absolutely nothing going on,” a market source said.

Acorda Therapeutics Inc.’s 1.75% convertible notes due 2021 were one of the few names to make an appearance on the tape.

The notes were largely unchanged at 75.5, a market source said.

The company announced an exchange for $276 million of the 1.75% convertible notes for approximately $207 million of new 6% convertible notes due 2024 on Monday, Prospect News reported.

Holders who participated in the exchange were given $750 principal amount of the new 6% notes and a cash payment of $200 per $1,000 principal amount of old notes.

The biopharmaceutical company issued $345 million of the 1.75% convertible notes at par in June 2014.

Acorda stock was $32.12 when the 1.75% convertible notes were priced.

Stock was $1.82, an increase of 2.25%, shortly before 11 a.m. ET.

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