Morning Commentary: Synchronoss’ new 0.75% notes dominate, trade above par; MolyCorp gains

By Stephanie N. Rotondo

Phoenix, Aug. 7 – A convertible bond trader said Synchronoss Technologies Inc.’s new 0.75% convertible senior notes due 2019 were dominating early trading on Thursday.

“$100 million of the new issue has traded so far,” he said, adding that the total volume for the space at mid-morning was $140 million.

He placed the $200 million issue in a 103.5 to 104 range. The equity (Nasdaq: SNCR) was meantime off 58 cents, or 1.5%, at $38.09.

The deal came via Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC early Thursday. Upon the maturity date, holders of the bonds can opt to convert the debt into equity at an initial conversion rate of 18.8072 common shares per each $1,000 of notes. That amounts to an initial conversion price of $53.17 per share and an initial conversion premium of 37.5%.

Meanwhile, MolyCorp Inc.’s 3.25% convertible notes due 2016 were up as much as a point at mid-morning as investors continued to react positively to news out Wednesday regarding a new $400 million financing commitment from Oaktree Capital.

A trader pegged the convertible debt at 74. He said the stock (NYSE: MCP) traded as high as $2.30 early in the day, though it had settled back in to around $2.08.

At mid-morning, the equity was at $2.11.

© 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.