Morning Commentary: New deals eyed; Acorda looks slightly cheap, Restoration Hardware slightly rich

By Rebecca Melvin

New York, June 17 – Two new deals were being marketed in U.S. convertibles for pricing after the market close on Tuesday, including Acorda Therapeutics Inc.’s $300 million of seven-year convertible senior notes talked at a 1.75% to 2.25% coupon and a 27.5% to 32.5% premium and EZCorp Inc.’s $175 million offering of five-year convertible notes talked to yield 2.25% to 2.75% and with a 30% to 35% premium.

Acorda was viewed as slightly cheap at the midpoint of talk, using a 500 basis points credit spread and 35% volatility. That got the deal worth 100.6, according to a Connecticut-based trader.

A third deal was also getting a look for pricing after the market close on Wednesday. Restoration Hardware Holdings Inc.’s $300 million offering of five-year convertible senior notes was viewed as slightly rich, using a 325 bps credit spread and 35% vol., which got the deal worth 99.2 at the midpoint of 0% to 0.5% coupon talk and 30% to 35% premium talk, the Connecticut-based trader said.

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