Midday Commentary: Incyte's two-tranche deal prices, trades up; MolyCorp falls on earnings

By Stephanie N. Rotondo

Phoenix, Nov. 8 - A convertible bond trader said Friday's session was on the quiet side, though investors did appear to be keen on Incyte Corp.'s new $700 million two-tranche deal.

"It's all invisible volume," he said, as a lot of trading was taking place in the new deal.

Late Thursday, Incyte brought the deal, which consisted of $350 million of 0.375% notes due 2018 and $350 million of 1.25% notes due 2020. The trader saw the 0.375% notes trading at 104 bid, 104.75 offered early on Friday, while the 1.25% notes were at 104.25 bid, 105 offered.

The underlying shares were up nearly 3%.

In the secondary, MolyCorp Inc.'s 3.25% convertible notes due 2016 "came in a point," according to the trader, after the company reported a wider quarterly loss.

The trader pegged the issue around 69, which compared to a 69.75 to 70 range on Thursday.

However, the stock was trading up about 6.5% as of midday.

"Nobody really trusts the company," the trader remarked, pointing to the company's recent calls for additional cash, even as it cut revenue and production forecasts.

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