Planned Depomed, Electronics For Imaging add in the gray; Huron Consulting notes on tap

By Rebecca Melvin

New York, Sept. 3 – Market players were sizing up three new deals in the convertibles space on Wednesday and bid up at least two of them in the gray market ahead of final terms expected to be fixed after the market close.

Electronics For Imaging Inc.’s $300 million of five-year convertibles were initially seen higher at 100.25 bid, 101 offered. But at the midpoint of talk of a 0.75% fixed coupon and 22.5% initial conversion premium, the paper was seen trading at 100.25 in the gray market, a New York-based trader said.

Depomed Inc., which is pricing $230 million of seven-year convertible senior notes; was seen in the gray market at 102 bid, 103 offered.

A third deal, Clovis Oncology Inc.’s $200 million of seven-year convertibles, was not heard in the gray.

After the market close, Chicago-based consulting company Huron Consulting Group Inc. launched an offering of $225 million of five-year convertibles that was talked to yield 0.75% to 1.25% with an initial conversion premium of 27.5% to 32.5%.

Back in established issues all three Tesla Motors Inc. convertibles were trading extremely actively and were seen flat, or in line, with underlying shares after at least two of the tranches edged up on swap on Tuesday.

Tesla shares had pulled back in late afternoon trading after hitting a record high at the outset of the session.

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