Morning Commentary: AMAG continues trajectory lower; Vodafone launches £500 million convertible

By Rebecca Melvin

New York, Nov. 19 – AMAG Pharmaceuticals Inc.’s convertibles were being offered early Thursday as shares of the Waltham, Mass.-based specialty pharmaceutical company fell in response to a regulatory setback for its Makena drug.

The Food and Drug Administration asked for further information about AMAG’s application seeking approval for a single-dose vial of Makena, which is used to reduce the risk of preterm birth.

“AMAG shares are down a lot, and the bonds are for sale,” a trader said.

AMAG’s 2.5% convertibles due 2019 were quoted at 118.75 bid, 119.25 offered with the shares at $26.85.

AMAG shares were last down $2.38, or 8.2%, at $26.68.

The drop is the latest in a continuing slide in this name, the trader said. Earlier this month the convertibles tumbled with shares on an earnings miss.

In the primary market, London’s Vodafone Group plc launched an offering of about £500 million of equity-linked bonds that were seen pricing on Dec. 3.

The Regulation S deal was talked at a 0.4% to 1.2% coupon and a 30% initial conversion premium above the share reference price, or volume-weighted average price of ordinary shares over 10 trading days beginning Friday, according to a company news release.

Morgan Stanley & Co. International plc and HSBC Bank plc are joint bookrunners of the offering.

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