| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2017 > News item |
Morning Commentary: Microchip’s new deals trade ‘around par’ post-pricing; Acorda gains momentum
By Stephanie N. Rotondo
Seattle, Feb. 10 – The convertible bond market was zeroed in on Microchip Technology Inc.’s new $2.3 billion deal early Friday.
At the open, Microchip said it had priced $1.8 billion of 1.625% convertible senior subordinated notes due 2027 and $500 million of 2.25% convertible junior subordinated notes due 2037.
In early dealings, a trader said the issues accounted for $217 million of the total $319 million in trading volume.
The 1.625% convertibles were the busier of the two tranches, trading in a 99.75 to 100.125 context, the trader said. The 2.25% notes were “right around par as well,” in a par to 100.25 range.
The underlying stock (Nasdaq: MCHP) was off 56 cents at $70.37.
“Not a whole lot of gamma there,” the trader noted.
Meanwhile, Acorda Therapeutics Inc.’s 1.75% convertible notes due 2025 remained on the radar.
A trader said the paper had been active on Thursday, trading at least 25 times in round-lots. By mid-morning on Friday, the issue had traded at least 11 times.
“People are falling all over themselves to buy this issue,” the trader said.
The trader saw the issue at 89.625 versus a share price of $25.25.
“The stock is up a lot over the past couple of weeks,” the trader further commented.
The movement in the name came as the company said it had inked a settlement deal with Apotex Corp. over a patent infringement case. The case, brought by Acorda against Apotex, was in regards to Apotex’s plan to bring a generic version of Acorda’s Ampyra drug to market. Under the settlement, Apotex has to wait until 2025 to sell the generic version.
“The exclusivity is longer than people feared it might be,” a trader explained, deeming the news a “positive” for Acorda.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.