Morning Commentary: Jazz Pharmaceuticals prices new deal, trades actively; Synchronoss steady

By Stephanie N. Rotondo

Phoenix, Aug. 8 – Trading in the convertible bond market was being dominated by Jazz Pharmaceuticals Inc.’s newly priced $500 million offering of 1.875% exchangeable senior notes due 2021, a trader reported early Friday.

“It’s all one issue,” he said, noting that of the total trades that had taken place in the market, Jazz made up more than half of the volume.

He pegged the issue at 101.5, adding that “the stock is down two bucks, so they’ve been doing well.”

Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch were the joint lead managers.

The notes bear interest semiannually with payments on the 15th day of February and August. The initial exchange rate is 5.0057 ordinary shares per each $1,000 of notes, equal to an initial exchange price of $199.77 per share – a 47.5% premium over the Aug. 7 closing share price of $135.44.

The notes can be exchanged for cash or equity, or a combination thereof.

Among other recent deals, Synchronoss Technologies Inc.’s $200 million of 0.75% convertible senior notes due 2019 were steady and a lot less active than they had been Thursday, the trader said.

“That’s the convert market,” he said. “Things trade for a day and then that’s it.”

The deal came late Wednesday and was the most actively traded issue on Thursday.

The notes were seen at 102.75 in early trading, in line with Thursday’s close.

The stock (Nasdaq: SNCR) was up 8 cents at $38.28.

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