New Trinity Biotech quiet, shares lower; overall market muted ahead of holiday weekend

By Rebecca Melvin

New York, April 2 – Trinity Biotech plc’s newly priced 4% exchangeables were not actively traded Thursday after the Ireland-based diagnostics-products maker priced $100 million of the 30-year senior notes. But a syndicate source said there was one trade that was up strongly at 104 even though the shares underlying the exchangeables were down about 9%.

But Trinity wasn’t the only name that was quiet on Thursday. Traders said there were no names to speak of in the last full session ahead of the holiday weekend.

Financial markets close early on Friday in observance of Good Friday.

The Trinity deal came on the heels of another small deal in the health care space from Egalet Corp., which priced a $60 million deal of 5.5% convertibles late Tuesday.

Back in established issues, NuVasive Inc.'s convertibles dropped as shares sank in the aftermath of chairman and chief executive Alex Lukianov’s resignation from the San Diego-based spinal medical device maker after the board concluded he didn't follow expense reimbursement and personnel policies.

The NuVasive 2.75% convertibles were seen during the session down more than 2 points at 121.4, and at the close, a market source marked them at 119. NuVasive shares closed down $3.23, or 7%, at $42.37.

SanDisk Corp.’s sister convertibles continued to trade Thursday following a takeout rumor that surfaced Wednesday, a New York-based trader said.

Annaly Capital Management Inc.’s 5% convertible, which matures in about six weeks, was trading on Wednesday. The paper was trading rather sloppily due to its large size, a trader said. But they were “wrapped around 100.30, which is about 2%” for paper due May 15, the trader said.

Rovi Corp. was another name that has been active at its current level at about 95. Pricing on Thursday was a little better by about 0.25 point to 0.5 point on a swap basis amid outright buyers, a trader said.

Equities ended in positive territory, following back-to-back down days, and ahead of the U.S. Labor Department’s March jobs report, which will be released on Friday.

The S&P 500 stock index added 7.27 points, or 0.4%, to 2,066.96; the Dow Jones industrial average gained 65.06 points, or 0.4%, to 17,763.24, and Nasdaq stock index tacked on 6.71 points, or 0.14%, to 4,886.94.

New Trinity Biotech quiet

Trinity Biotech’s 4% exchangeables due 2045 were not heard in trade by numerous sources queried, but a syndicate source said there was one trade at 104 on Thursday.

The price lift was achieved even as shares sank on the heels of the overnight deal that was priced ahead of the market open. Shares closed down $1.81, or 9.4%, to $17.45.

The exchangeables priced at an exchange premium of 15% over the closing share price on April 1.

Raymond James & Associates Inc. was bookrunner of the Rule 1444A deal that has a $15 million greenshoe.

The exchangeables are non-callable until April 1, 2020 and then are provisionally callable for two years if the share price exceeds 130% of the conversion price. After April 1, 2022, the bonds are freely callable.

For bonds redeemed prior to April 1, 2022, there is a make-whole premium for unpaid interest.

Holders may put the bonds on April 1 of years 2022, 2025, 2030, 2035 or 2040.

Net proceeds are expected to be used for potential acquisitions and for general corporate purposes, which may include continued product development and commercialization.

Dublin-based Trinity Biotech makes and markets diagnostic reagents and instruments.

SanDisk bonds active

SanDisk’s 0.5% convertibles due 2020 traded around 101.25, which was the upper end of the previous day’s range as shares of the storage chip maker ended the session near their lows for the day at $64.57, which was down 57 cents, or 0.9%.

SanDisk’s 1.5% convertibles due 2017 traded around 139, which remained steady at the higher level reached from the mid-130s level earlier in the week.

“People really like the 0.5s at this level,” a trader said. “It was a big move on that rumor about a takeover.”

Mentioned in this article:

Annaly Capital Management Inc. NYSE: NLY

Egalet Inc. Nasdaq: EGLT

NuVasive Inc. Nasdaq: NUVA

Rovi Corp. Nasdaq: ROVI

SanDisk Corp. Nasdaq: SNDK

Trinity Biotech plc Nasdaq: TRIB

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