Morning Commentary: Cypress Semiconductor convertible notes in focus on buyout

By Abigail W. Adams

Portland, Me., June 3 – The convertibles secondary space was active early in Monday’s session as equities wavered between gains and losses.

There was $107 million in reported volume a little more than one hour into Monday’s session.

Cypress Semiconductor Corp.’s convertible bonds were in focus and skyrocketed on an outright basis alongside stock on news of a buyout.

The semiconductor company’s 4.5% convertible notes due 2022 were in focus and rose more than 20 points outright to trade up to 166.25 early in the session.

The notes were trading just over parity, which was 164.25, a market source said.

More than $20 million of the bonds were on the tape early in the session.

Cypress’ 2% convertible notes due 2023 were also active with the notes gaining about 8 points outright to trade up to 117.875, according to a market source.

About $7 million of the bonds were on the tape early in the session.

Cypress Semiconductor’s stock was $22.23, an increase of 24.73%, shortly before 11 a.m. ET.

Germany-based Infineon Technologies AG announced prior to the market open that it will acquire Cypress Semiconductor in a deal valued at $10 billion.

The deal involves a cash offer of $23.85 per share and includes debt.

© 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.