Morning Commentary: AMD, PDC Energy price upsized deals, beyond the tight end of talked terms

By Rebecca Melvin

New York, Sept. 9 – Advanced Micro Devices Inc.’s newly priced 2.125% convertibles due 2026 traded up upon release for secondary market trading on Friday despite lower shares, a market source said.

The new AMD 2.125% convertibles were heard at 101.5 bid, 102 offered versus an underlying share price of $6.10, a New York-based trader said.

AMD priced an upsized $700 million of the senior notes beyond the rich end of talked terms and concurrently with $600 million of common stock at $6.00 per share.

Shares of the Sunnyvale, Calif.-based chip maker were last down 20 cents, or 3%, at $6.02.

Also in the primary market early Friday was PDC Energy Inc.’s new 1.125% convertible due 2021. Prospect News had not yet heard a market in these new notes after the Denver-based energy company priced an upsized $175 million of the five-year senior paper beyond the rich end of talked terms. PDC also priced a common stock offering, which was upsized to $500 million for shares at $63.25 each.

PDC shares were moving in the opposite direction of AMD’s and were last up $2.24, or 3.5%, at $67.06.

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