Morning Commentary: Nevro trades up, adds on swap with shares higher; Weatherford improves

By Rebecca Melvin

New York, June 8 – Nevro Corp.’s newly priced 1.75% convertibles traded up on their debut in secondary market action early Wednesday after the Redwood City, Calif.-based medical device company priced an upsized $150 million of the five-year senior notes at the rich end of talked terms.

The new Nevro convertibles were seen at 104 last with shares up about 3%.

The new bond was better on a swap basis, a market source said, having traded at 103 and north of 103 right out of the chute.

“They did well,” a syndicate source said.

Nevro shares were last up $2.25, or 3.1%, at $74.98.

The registered deal was upsized from an initially talked $125 million. J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were joint bookrunners for the offering, and Leerink Partners LLC and JMP Securities LLC acted as co-managers.

Elsewhere, Weatherford International Ltd.’s 5.875% exchangeables traded up another point or more in the early going amid higher oil prices. The new exchangeable, which debuted in the market last week, traded at 119.25, which was up from about 118.7 on Tuesday. Weatherford common shares were down in early trading at $6.54, which was off 18 cents, or 2.6%.

The price of crude oil for the West Texas Intermediate front month was up 1.9% at $51.29 per barrel on the New York Mercantile Exchange.

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