Morning Commentary: Novavax plummets after failed trial for RSV vaccine candidate; Wheeler prices

By Rebecca Melvin

New York, Sept. 16 – Novavax Inc.’s 3.75% convertibles due 2023 languished in the mid-40 range early Friday following a slump late Thursday after the Rockville, Md.-based biotechnology company reported a failed trial for its RSV respiratory disease vaccine candidate, market sources said.

Novavax common stock cascaded $6.85, or 82%, to $1.49 in heavy trading action.

The Novavax convertible is less than a year old. The company priced an upsized $325 million of the bonds in early February.

Elsewhere, Intel Corp.’s two convertible bonds added in tandem with gains in the stock after the Santa Clara, Calif.-based semiconductor giant revised third-quarter revenue guidance upward.

The Intel 2.95% convertibles traded at 137.4 early Friday, which was up 2.6 points on the day, and the Intel 3.25% convertibles traded at 181.5, which was up 4.5 points, according to Trace data. Both bonds were trading actively. Intel shares were up 2.5% at $37.48 on the Nasdaq stock market.

In primary action, Wheeler Real Estate Investment Trust Inc. priced $40 million of 8.75% convertible preferred shares. The Virginia Beach, Va.-based commercial REIT’s deal came at the cheap end of price talk for a dividend of 8.5% to 8.75% and an initial conversion premium of 20% to 25%.

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