Midday Commentary: Convertibles quiet ahead of holiday; Amyris deal prices; Allegheny Tech active

By Rebecca Melvin

New York, May 23 - Convertibles were mostly quiet in the early going Friday ahead of the long holiday weekend in observance of Memorial Day, market sources said.

There was a small, new deal released for secondary dealings, but it wasn't heard in trade. Amyris Inc. priced $75 million of five-year convertible senior notes at par to yield 6.5% with an initial conversion premium of 24%.

The Emeryville, Calif.-based renewable chemicals and fuels maker plans to use the proceeds for general corporate purposes including possible collaboration opportunities, strategic transactions or acquisitions.

Elsewhere, Allegheny Technologies Inc.'s 4.25% convertible was the most actively traded issue in converts, according to Trace data, at pricing that was little changed on the day at right around par.

The Allegheny issue matures on June 1, and market players are watching the price of the underlying stock, which is hanging just about even with the bond's conversion price.

RMP International Inc.'s 2.25% convertible due 2020 was also in trade and changed hands at 120.5 with the underlying shares of the Medina, Ohio-based specialty chemicals maker up by about 15 cents, or 0.4%, at $42.48.

© 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.