Midday Commentary: New Post rises in aftermarket after upsizing; Amyris plans $75 million deal

By Rebecca Melvin

New York, May 22 - Post Holdings Inc.'s newly priced 5.25% tangible equity units traded up early Thursday after the St. Louis-based cereal maker priced an upsized $250 million of the units at the tight end of revised coupon talk and at the tight end of initial premium talk.

The Post units were quoted up at 104 bid, 104.75 offered with the underlying shares up about 2.5%.

One trader said the increase amounted to more than 2 points dollar neutral from issue. He quoted the new units at 103.75 bid, 104.75 offered versus an underlying share price of $48.90.

Also in the primary market, Amyris Inc. launched an offering of $75 million of five-year convertible senior notes, which were expected to price after the market close Thursday.

The Emeryville, Calif.-based renewable fuels and chemicals company planned to price the notes with a 6% to 6.5% coupon and a 20% to 25% premium.

The deal has a conversion make-whole feature after one year, under which holders can get a cash payment of up to three years of coupons in addition to shares deliverable upon conversion if shares trade above the conversion price for 20 out of 30 days.

This feature was also seen in the Solazyme Inc. convertibles, which priced March 26.

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