Morning Commentary: Flexion’s new issue expands; DISH deemed ‘better to buy’ but unchanged

By Stephanie N. Rotondo

Seattle, April 28 – Flexion Therapeutics Inc.’s $175 million of 3.375% convertible senior notes due 2024 continued to do well in early Friday trading, a market source reported.

The source said the paper – which closed with a 105 handle post-pricing on Thursday – had “expanded about half a point on a dollar-neutral basis” by mid-morning.

The company’s shares (Nasdaq: FLXN) had improved after the deal came, but in early Friday trading, the equity had declined 44 cents, or 2.1%, to $20.50.

The deal came late Wednesday, upsized from $125 million and with an initial conversion premium of 30%. Yield came in the middle of the 3.125% to 3.625% price talk.

Meanwhile, DISH Network Corp.’s convertibles were “still active,” a trader said.

“They look better to buy but still unchanged on a dollar-neutral basis,” he said.

The 3.375% convertible notes due 2026 were pegged at 122.325 at another shop, which was down a point from previous trades.

The underlying stock (Nasdaq: DISH) was meantime off 75 cents, or 1.15%, at $64.25.

The satellite TV services provider is scheduled to release earnings on Monday. The market is also hoping to get some clue as to what the company plans to do with its massive inventory of wireless spectrum.

For an end-of-the-month session, there was “not a whole lot” going on in the convertible bond market, a source said.

“Volume is very light,” a market source said, adding that valuations were “mostly unchanged.”

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