| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2018 > News item |
Morning Commentary: Insmed, Teekay price new convertible notes; ‘borrow tight’ on Teekay
By Abigail W. Adams
Portland, Me., Jan. 24 – Two new deals entered the convertible bond market on Wednesday, both of which were upsized during the bookbuilding process.
Teekay Corp. priced an upsized $125 million of five-year convertible notes with a coupon of 5% and an initial conversion premium of 20% in an overnight deal. Pricing came at the middle of what one source called “very attractive price talk.”
Price talk had been for a coupon of 4.75% to 5.25% and an initial conversion premium of 17.5% to 22.5%.
The new paper “really hasn’t started trading yet,” a market source said. “The borrow on stock is pretty tight.”
The convertible notes priced alongside a concurrent equity offering of 10 million shares at $9.75 per share.
While the borrow on the stock “is an issue,” it might lighten after the settlement date with the concurrent equity offering, the source said. “If the borrow lightens, more hedgers may get involved.”
JPMorgan and Morgan Stanley are joint bookrunners for the Rule 144A deal, which carries an upsized greenshoe of $25 million.
The deal size was initially $100 million with a greenshoe of $15 million.
Teekay is a Hamilton, Bermuda-based provider of marine services to the oil and gas industry.
Insmed Inc. priced an upsized $400 million of seven-year convertible notes after the market close on Tuesday with a coupon of 1.75%, at the rich end of talk, and an initial conversion premium of 35%, richer than talk.
Price talk had been for a coupon of 1.75% to 2.25% and an initial conversion premium of 27.5% to 32.5%, according to a market source.
Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Leerink Partners LLC were joint bookrunners for the registered deal, which carries an upsized greenshoe of $50 million.
The initial size of the deal was $300 million with a greenshoe of $45 million.
Insmed is a Bridgewater, N.J.-based biopharmaceutical company focused on treatments for rare diseases.
© 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.