Morning Commentary: Jazz prices at discount, fades post-pricing; AMAG convertibles hold steady

By Stephanie N. Rotondo

Seattle, Aug. 18 – A new issue from Jazz Pharmaceuticals plc wasn’t doing all that well in early convertible bond market trading on Friday.

A trader said the $500 million Rule 144A issue of 1.5% exchangeable senior notes due 2024 came at the discounted price of 97 and with an initial exchange premium of 50%. Once the session started, the paper dipped to 96.5 bid.

However, that was better than the lows of 95.25 in the gray market, he said.

The company’s older 1.875% exchangeable senior notes due 2021 were also moving around, according to the trader.

He pegged that issue at 104.10 against a stock price of $140.00.

Another market source saw the 1.875% notes trading down to a 103 handle, which compared to previous trades in the 106 area.

The underlying equity (Nasdaq: JAZZ) was off $4.66, or 3.17%, at mid-morning, trading at $141.35.

Morgan Stanley & Co. LLC ran the deal.

Meanwhile, AMAG Pharmaceuticals Inc.’s 3.25% convertible notes due 2022 were being eyed, though there hasn’t been any fresh news in over a week.

One market source deemed the issue a shade lower at 92.125. A second source called the debt about unchanged, trading in a 92.125 to 92.375 context.

AMAG’s shares (Nasdaq: AMAG) were up a dime at $17.05 in early trading.

© 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.