Jazz prices at discount, fades post-pricing; AMAG convertibles hold steady; DyCom sees action

By Stephanie N. Rotondo

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

A trader said the $500 million Rule 144A offering of 1.5% exchangeable senior notes due 2024 came at the discounted price of 97, 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, though they recovered to a range of 104.75 to 105.25.

Still, that compared to previous trades in the 106 area.

The underlying equity was off of its intra-day lows, but still finished weaker. The shares declined $1.61, or 1.1%, to $144.40.

Morgan Stanley & Co. LLC ran the deal.

Elsewhere in the pharmaceutical arena, 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 92.625 context.

AMAG’s shares were up 20 cents, or 1.18%, at $17.15.

Another notable name for the day was DyCom Industries Inc. Its 0.75% convertible notes due 2021 declined to 108.875 in round-lot trading, down from previous levels in a 110 to 111 context.

However, most of the trading in the name was made up of smaller-sized deals, which occurred in a range of 108.75 to 109.25.

DyCom’s stock was down 57 cents at $79.97.

Like AMAG, there was no news out to cause the moves in the bonds or the equity.

Mentioned in this article:

AMAG Pharmaceuticals Inc. Nasdaq: AMAG

DyCom Industries Inc. NYSE: DY

Jazz Pharmaceuticals plc Nasdaq: JAZZ

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