Morning Commentary: Kadmon prices upsized convertible notes; Western Digital active

By Abigail W. Adams

Portland, Me., Feb. 11 – The convertibles primary market rolled out what sources expect to be the last new deal of the week.

In an overnight deal, Kadmon Holdings Inc. priced an upsized $200 million of six-year convertible notes prior to the market open on Thursday at par with a coupon of 3.625% and an initial conversion premium of 30%.

Pricing came toward the rich end of talk for a coupon of 3.25% to 3.75% and at the rich end of talk for an initial conversion premium of 25% to 30%, according to a market source.

The new paper was not seen on Trace early in the session.

Meanwhile, it was an active morning in the secondary space with $107.5 million on the tape early in the session.

Western Digital Corp.’s 1.5% convertible notes due 2024 saw heavy volume early in the session.

The notes were changing hands at 102, according to a market source. There was more than $10 million on the tape.

However, there were two $5 million plus trades.

Western Digital’s stock traded up to $64.33, an increase of 6.52% shortly before 11 a.m. ET.

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