Calendar builds with deals from NantHealth, Amicus, Finisar; notes from Aegean, WWE fizzle

By Stephanie N. Rotondo

Seattle, Dec. 15 – The new convertible bond deal flow continued to push out deals on Thursday, as NantHealth Inc. announced plans to sell $100 million of five-year convertible senior notes.

The yield is talked at 5% to 5.5% with an initial conversion premium of 25% to 30%.

J.P. Morgan Securities LLC and Jefferies LLC are running the books.

Ahead of pricing, the company’s common stock waned $1.90, or 16.37%, to $9.71. On Wednesday, the shares had risen nearly 7%.

The company announced earlier in the week that its stock was being added to the Nasdaq Biotech Index, effective on Monday.

In addition to NantHealth, the market was also waiting for a $225 million offering of seven-year convertibles from Amicus Therapeutics Inc.

Amicus was announced late Wednesday. The issue is being talked with a 2.75% to 3.25% yield, with an initial conversion premium of 25% to 30%, according to a market source.

After the announcement, Amicus’ stock dropped 11% in pre-market dealings. The shares officially ended the session at $4.80, off $1.05, or 17.95%.

When underlying equities drop in the wake of new issues, it is usually because investors are worried about dilution. But Amicus said in a press release that it intended to use some of the proceeds from the offering to pay for certain hedging transactions aimed at stemming the potentially dilutive effect of the new deal.

Additionally, Amicus said it would use the remaining funds to refinance existing debt and for general corporate purposes. Given that the Food and Drug Administration recently told the biotech company that it needed additional trials on its oral drug Galafold – a potential treatment for the rare genetic disorder known as Fabry disease – the company is likely hoping the offering will shore up its cash position.

Goldman Sachs & Co. and JPMorgan are leading the Rule 144A offering.

Both new issues were expected to price after Thursday’s close. Details were not available as of press time, however, meaning pricing information would likely come early Friday.

But Nanthealth and Amicus may not be the only deals to surface Friday morning. Late Thursday, Finisar Corp. said it planned to sell $450 million 20-year convertible notes, with price talk for a yield of 0.25% to 0.5% and a conversion premium of 35% to 40%.

Pricing is expected prior to Friday’s open.

The deal will include a $67.5 million greenshoe.

The issue will be both putable and callable, in certain circumstances.

Prior to the announcement, Finisar’s stock traded up $1.43, or 4.57%, to $32.72. In after-market trading, the equity was off $2.02, or 6.17%.

Aegean, WWE under par

From Wednesday’s business, Aegean Marine Petroleum Network Inc.’s 4.25% convertible notes due 2021 were seen straddling 99, unchanged day over day.

The underlying stock initially traded lower on the day but managed to tick up a nickel to $10.50 by the end of the day.

The deal came upsized from $100 million and with an initial conversion premium of 22.5%. The issue priced at the mid-range of talk for a yield of 4% to 4.5% and an initial conversion premium of 20% to 25%.

Jefferies ran the books.

World Wrestling Entertainment Inc.’s $200 million of 3.375% convertible notes due 2023 – a deal priced Tuesday – were meantime also hovering in a range around 99, which was also unchanged.

The equity – which declined almost 4% after pricing on Tuesday – remained under pressure, slipping 2 cents to $18.54.

The deal came upsized from $175 million and with a conversion premium of 25%. The deal priced within price talk for a yield of 3.25% to 3.5% and a premium of 25%.

Mentioned in this article:

Aegean Marine Petroleum Network Inc. NYSE: ANW

Amicus Therapeutics Inc. Nasdaq: FOLD

Finisar Corp. Nasdaq: FNSR

NantHealth Inc. Nasdaq: NH

World Wrestling Entertainment Inc. NYSE: WWE

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