Jazz Pharmaceuticals deal prices, trades actively; Synchronoss new issue slips slightly

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 Friday.

“It’s all one issue,” he said at mid-morning, noting that of the total trades that had taken place in the market, Jazz made up the bulk of the volume.

At the close, the issue was seen at 101.25 bid, 101.75 offered.

The equity ended the day at $136.58, up $1.14.

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 priced Thursday and was the most actively traded issue during that session.

The notes were seen at 102.75 in early trading, in line with Thursday’s close. But by the end of business, the notes had come in a touch to 102.125 bid, 102.625 offered.

The stock closed up a dime at $38.30.

Credit Suisse Securities (USA) LLC and JPMorgan are the joint bookrunners.

Upon maturity, 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%.

Mentioned in this article:

Jazz Pharmaceuticals Inc. Nasdaq: JAZZ

Synchronoss Technologies Inc. Nasdaq: SNCR

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