New Huron Consulting trades at par; Depomed shares push higher after court decision

By Rebecca Melvin

New York, Sept. 5 – Huron Consulting Group Inc.’s newly priced 1.25% convertibles traded right at par on Friday after the Chicago-based consulting company priced $225 million of the five-year notes at the cheap end of talk.

The Huron notes were called 99.5 bid, 100.5 offered with the underlying shares at about $62.50, which was just slightly lower. Later shares veered higher, but the bonds were still at par, a New York-based trader said.

Depomed Inc.’s new 2.5% convertibles lost some ground on a hedged basis on Friday afternoon as shares of the Newark, Calif.-based specialty pharmaceutical company lifted suddenly following news of a favorable summary judgment in a lawsuit.

The bonds had outperformed on their debut on Thursday with a 2-point gain on a dollar-neutral, or hedged, basis.

Although the U.S. primary market saw four new deals this week, the trading action surrounding the deals was called “uneventful.”

“These are smaller issues. They come and go like a ship in the night,” a New York-based trader said.

Traders have said that they are looking for something bigger like a $1 billion plus offering.

That said, Priceline Group Inc.’s 0.9% convertibles issue, which was a $1 billion deal that priced last month, was seen lower on an outright basis on Friday but unchanged on a dollar-neutral basis at 97.

“They traded down with the stock. If you were outright, you lost a little, but they are unchanged dollar neutral,” the trader said.

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