Morning Commentary: Allegheny Technologies drops on debut; new Repligen moves up as shares weaken

By Rebecca Melvin

New York, May 19 – Convertibles players were trading two new issues on their debut in the secondary market on Thursday.

Allegheny Technologies Inc.’s newly priced 4.75% convertibles traded down in the early going after the Pittsburgh-based specialty steel maker priced $250 million of the six-year senior notes at the cheap end of talked terms.

And the Repligen Corp.’s new 2.125% convertibles traded up a bit even though shares were down after the Waltham, Mass.-based bioprocessing company priced $100 million of the five-year senior notes at the cheap end of talked terms.

The Allegheny 4.75% convertibles were quoted at 98.5 to 99 by a New York-based trader.

Allegheny shares were down another 2.5% at $11.26 after they plunged 18% on Wednesday.

“Allegheny isn’t faring well today,” the trader said.

The Repligen 2.125% convertibles were quoted at 101 to 102. Repligen shares were trading sharply lower and were last down $2.77, or 11%, to $23.48.

The international primary market was active as well. Seaspan Corp., a Hong Kong-based containership leasing company, priced $140 million of 6.95% series F cumulative convertible perpetual preferred shares to a third-party investor based in Asia.

In Europe, BP Capital Markets plc launched an offering of £400 million of seven-year convertible bonds and concurrent call spread on Thursday, and NV Bekaert SA, a Belgium-based steel wire company, launched an offering of up to €380 million of five-year convertible bond and a concurrent repurchase offering for convertibles maturing in 2018.

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