Midday Commentary: New, upsized Akamai trades slightly over par; secondary market quiet

By Rebecca Melvin

New York, Feb. 14 - Akamai Technologies Inc.'s newly priced 0% convertibles due 2019 traded slightly up out of the chute on Friday and then slipped with lower shares after the Cambridge, Mass.-based content delivery and cloud infrastructure company priced an upsized $600 million of the five-year notes at the tight end and beyond the tight end of talked terms late Thursday.

The new Akamai 0% convertibles were seen at 100.625 versus Thursday's closing share price of $59.71, according to a syndicate source. The new paper also traded at 100.875 and at 100.25, market sources said.

Shares were trading in negative territory in the early going but were most recently unchanged to a few cents higher.

The new Akamai deal, which was upsized from $500 million, was allocated to investors on a 59% to 41% split between outright and hedged investors.

Back in established issues, trading was subdued, sources said, following a major eastern U.S. storm that left some areas of the New York region blanketed with as much as 20 inches of snow and ahead of the long holiday weekend for Presidents Day.

The Medicines Co.'s 1.375% convertibles due 2017, which dropped about 10 points on an outright basis on Thursday, weren't seen in trade yet early Friday. They were last 123.93, which was up a point or two from the lows touched Thursday after news that a regulatory panel ruled against approval of the company's Cangrelor blood clot prevention drug.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.