Midday Commentary: New BioMarin tranches see bid surge, then pull back; new NQ Mobile quiet

By Rebecca Melvin

New York, Oct. 9 - BioMarin Pharmaceutical Inc.'s newly priced tranches of five- and seven-year convertible senior subordinated notes were bid sharply higher in early action Wednesday, but then they pulled back some after investors "got their allocations and sold into it," traders said.

Both tranches, including the BioMarin 0.75% convertibles due 2018 and the BioMarin 1.5% convertibles due 2020, were seen initially at 106.5, and then they pulled back to 103, according to one trader. A second trader said they were 104 bid, 104.5 offered.

The bonds were seen at 102 to 103 plus in the gray market ahead of final terms being fixed late Tuesday.

BioMarin priced an upsized $680 million at the tight end of revised talk.

Also pricing overnight was NQ Mobile Inc.'s $150 million of five-year convertible senior notes that came with a 4% coupon and a 30% premium, which represented mixed pricing, or the rich end of coupon talk and the cheap end of premium talk.

The newly price NQ convertibles were not heard in trade, according to traders. But a syndicate source said they opened at 100 bid, 100.5 offered.

The underlying shares of the BioMarin convertibles were down in early action at $65.68, which was down $1.57, or 2.3%.

The underlying American Depositary Shares of the NQ convertibles slid $1.30, or nearly 7%, to $18.36.

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