Dynegy’s new 7% tangible units fly higher; BioMarin paper trends up on Sanofi takeover rumors

By Stephanie N. Rotondo

Seattle, June 17 – Dynegy Inc.’s new $400 million of 7% tangible equity units were “flying” in early Friday trading, according to a trader.

He said the units – which came in line with the 6.625% to 7.125%, up 22.5% to 27.5% price talk on Thursday – were trading in a 106 to 107 range. As for the stock underlying the units, it was “up about a dollar,” he said.

Dynegy plans to use proceeds from the new issue to fund an acquisition.

Meanwhile, BioMarin Pharmaceutical Inc.’s equity was also ticking higher, leading the 1.5% convertible notes due 2020 into higher territory as well.

“They are up on rumored Sanofi interest,” a trader said, noting a Bloomberg report that indicated Sanofi was eyeing BioMarin as a takeover alternative to Medivation.

Dynegy’s new 7% tangible equity units fared well on Friday, just one day after the company priced the $400 million deal.

Early in the session, the units were seen in a 106 to 107 range. Shortly before the bell, a trader said the units had come in a touch, though they were still higher on the day.

He placed them in a 105.25 to 106 context, versus a stock price of $16.95.

The equity ultimately closed at $16.92, up 89 cents, or 5.55%.

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