Morning Commentary: Clovis, Depomed add with underlying shares mixed; Electronics For Imaging gains

By Rebecca Melvin

New York, Sept. 4 – Two new convertibles in the health care space for $550 million in base deal proceeds traded up in the early going on Thursday, and a third deal for $300 million in the technology space also edged higher outright after pricing late Wednesday.

Clovis Oncology Inc.’s newly priced 2.5% convertibles were trading up at 102 after the Boulder, Colo.-based biopharmaceutical company priced an upsized $250 million of the seven-year notes at the rich end of talked terms.

Depomed Inc.’s newly priced 2.5% convertibles also gained to 102 after the Newark, Calif.-based specialty pharmaceutical company priced an upsized $300 million of the seven-year notes through the rich end of talked terms.

While the new convertibles were both up by equal amounts, the underlying shares of the two companies were trading mixed, with Clovis shares a little lower and Depomed trading a little higher.

Electronics For Imaging Inc.’s newly priced 0.75% convertibles also edged up. They traded out of the chute at 100.125 and traded up to 101.635 when the underlying shares were up 1.8%. When shares were up 2% the new paper traded at 102, a syndicate source said.

The Fremont, Calif.-based printing devices company priced $300 million of the five-year notes at the price points at which they were fixed following initial talk for a 0.5% to 1% coupon and 25% to 30% premium.

Electronics For Imaging shares were up 1.6% last at $43.73.

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