Morning Commentary: NXP Semiconductors active in early trading; Insmed convertible notes improve

By Abigail W. Adams

Portland, Me., April 23 – The convertibles space was off to a sluggish start with the $1.07 billion in new paper that entered the space last week slow to trade and long-standing issuances returning to focus.

NXP Semiconductors NV’s 1% convertible notes due 2019 remained active in the space early in Monday’s session as Qualcomm’s long-delayed acquisition of the company faces another hurdle.

The 1% notes were trading just north of 118 with stock down slightly. NXP’s convertible notes and stock have slid since last week after Qualcomm initiated a round of layoffs to cut $1 billion in operational expenses.

Qualcomm’s bid to acquire NXP experienced another setback mid-April with regulators in China expressing concern about the deal.

Qualcomm increased its bid for NXP in late February to $127.50 a share from $110.00 a share, or $46 billion including debt, Bloomberg reported. The increased offer was seen, in part, as an effort to fend off a hostile takeover from Broadcom Ltd.

President Donald Trump blocked Broadcom’s takeover attempt in mid-March, citing national security concerns.

Qualcomm’s long-delayed acquisition of NXP has received approval from eight of nine regulators with China the last approval needed. China’s roadblock to the acquisition has been seen as the latest manifestation of increasing trade tensions between China and the United States, CNN reported.

Meanwhile, Insmed Inc.’s 1.75% convertible notes due 2025 were up on an outright basis as the biotech company’s stock surged more than 9%. The 1.75% convertible notes were up about 3 points outright to trade at 95.857 early in Monday’s session, according to Trace data.

Insmed stock was up to $25.80 early in Monday’s session, an increase of 9.69%. Credit Suisse upgraded Insmed to outperform from neutral.

© 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.