Allegheny Technologies launches new deal; Pandora eyed after activist investors urge sales

By Rebecca Melvin

New York, May 17 – U.S. convertibles traded quietly on Tuesday but with a wider variety of issues changing hands on light volumes compared to more concentrated trading that has characterized recent sessions. Meanwhile, equities sold off following a strong rally on Monday.

After the market close, Allegheny Technologies Inc. launched an offering of $250 million of six-year convertible senior notes that was talked to yield 4.25% to 4.75% with a 25% to 30% initial conversion premium. The deal was expected to price after the market close on Wednesday.

The Pittsburgh-based steelmaker’s shares were unchanged during the session and in after-hours action as well.

Back in established issues, there were a variety of names trading, but pricing was generally static and there were no particular standouts, contrary to Monday’s session when Anacor Pharmaceuticals Inc.’s convertibles dominated trading action.

On Tuesday, Pandora Media Inc. was in focus but didn’t trade actively as shares of the internet radio company gained 6% after Corvex Management disclosed its 10% stake, making it the company’s single largest shareholder, and included a letter in its regulatory filing urging management to sell some assets and consider shareholder-value-maximizing strategies.

Social media has been a steady focus among convertibles investors, and several issues were trading again on Tuesday after strength seen on Monday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.