Convertible market slowdown continues; MOVE, Medidata Solutions price Rule 144A offerings

By Stephanie N. Rotondo

Phoenix, Aug. 7 - The convertible bond market was well into the "dog days of summer," as one trader put it.

"It's pretty quiet," he said.

However, the primary did see two new Rule 144A offerings price during the session.

MOVE Inc. brought $85 million of 2.75% convertible senior notes due 2018 at par on Wednesday, after announcing the deal on Monday.

A trader said the "tiny deal" was trading at 103 bid, 104 offered at mid-afternoon.

The notes can be converted prior to June 1, 2018 under certain circumstances. After June 1, 2018, the notes can be converted at any time. The initial conversion rate is 53.2907 common shares per $1,000 of notes, at a conversion price of $18.77 per share.

The conversion price is a 35% premium over the Aug. 6 closing share price of $13.90.

The stock ended Wednesday's trading at $13.68, off 22 cents, or 1.58%, from the day before.

Meanwhile, Medidata Solutions Inc. sold $250 million of 1% convertible senior notes due 2018.

The company had originally said it was selling $200 million of the notes, but a trader informed Prospect News on Tuesday that it had been upsized.

Late in the session that issue was pegged at 103 bid, 103.5 offered.

The initial conversion rate is equivalent to 8.6143 shares of common stock per $1,000 of notes, which is a conversion price of $116.09 per share. The conversion price represents a 35% premium to the Aug. 6 closing share price of $85.99.

The stock closed Wednesday at $86.66, up 67 cents.

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