Spectranetics gains on swap after quarterly loss; new Cinedigm trades at 101 to 103

By Rebecca Melvin

New York, April 24 – Spectranetics Corp.’s convertibles fell on an outright basis but expanded on a dollar-neutral, or hedged, basis on Friday after the Colorado Springs, Colo.-based medical device maker reported a quarterly loss that was worse than expected.

The Spectranetics bonds expanded 2 points or more, market sources said, and represented one of the best convertible arbitrage moves of the week.

“That and Iconix were the best moves of the week,” a New York-based sellsider said.

On Monday, Iconix Brand Group Inc.’s convertible bonds expanded 2 to 3 points in active trade as investors reacted to word of a manager exit.

Also on Friday, HomeAway Inc.’s convertibles were lower outright but expanded about a point on a hedged basis as shares of the Austin, Texas-based vacation rental site fell 15.5% on a lowered outlook.

The HomeAway 0.125% convertibles were seen last wrapped around 94, with the stock at $27.68.

In the primary market, Cinedigm Corp.’s newly priced 5.5% convertibles traded up a point or two on an outright basis on Friday after the New York-based distribution rights company priced $64 million of the senior notes at the cheap end and beyond the cheap end of talk, a syndicate source said.

The Cinedigm bonds were quoted at 101 bid, 103 offered when the underlying shares were up by at least 2 cents, or 2%, to $0.99.

© 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.