Morning Commentary: Allscripts Healthcare convertible notes hit the market, trade tight

By Abigail W. Adams

Portland, Me., Dec. 5 – The convertible secondary space opened Thursday with new paper in the market.

Allscripts Healthcare Solutions, Inc. priced $200 million of seven-year convertible notes after the market close on Wednesday at par to yield 0.875% with an initial conversion premium of 32.5%.

Pricing came toward the rich end of talk for a coupon of 0.75% to 1.25% and at the midpoint of talk for an initial conversion premium of 30% to 35%, according to a market source.

The new paper was in focus in the secondary space. However, the notes were trading in a tight range.

The 0.875% notes were changing hands between 100.25 and 100.75 with stock largely unchanged, a market source said.

The majority of trading activity was outright accounts. However, there were a few swaps on the tape, a source said.

Allscripts is a highly liquid stock, the source said. Swap activity in the name is expected to increase.

Allscripts stock was $10.09, an increase of 0.35%, shortly before 11 a.m. ET on Thursday.

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