Spirit Realty trading in size, but unchanged; Iconix convertibles active; Illumina mixed

By Stephanie N. Rotondo

Seattle, July 13 – After several sessions of the same old convertible bond names trading, a couple rarely traded issues were making moves on Wednesday.

Though the convertible bond market was experiencing an “extraordinarily quiet morning,” according to one trader – “that happens a lot in the summertime,” he said – Spirit Realty Capital Inc.’s paper was trading in good size.

However, the 2.875% convertible notes due 2019 were little moved, straddling 110. For its part, the equity was up 3 cents at $13.14 at mid-morning. The stock ended up 11 cents at $13.21.

Meanwhile, Iconix Brand Group Inc.’s 1.5% convertible notes due 2018 were also seen trading.

“That hasn’t been trading much at all lately,” a trader noted, seeing the issue in an 81.5 to 81.75 context at mid-morning.

Shortly before the close, the trader said the paper was “moving up,” placing the notes at 81.875 bid, 82.125 offered.

The stock was initially moving lower, however, slipping 19 cents, or 2.74%, to $6.75 in early trades. It eventually reversed course, trading up a penny to $6.95.

There was no fresh news out on either name to explain the surge in activity.

Illumina trades mixed

Illumina Inc.’s convertibles were also trading on the active side during the midweek session.

The 0% convertible notes due 2019 were pegged just north of 99, down nearly half a point on the day. The 0.5% convertible notes due 2021, however, were up over 2 points at 102.275, according to a market source.

The equity traded lower, losing $3.13, or 2.1%, to close at $145.86.

This week, rumors began to circulate that the San Diego-based biotechnology company, which is focused on genetic testing and research, was looking to take over Exact Sciences Corp., a Wisconsin-based molecular diagnostics provider. Exact Sciences is the creator of Cologuard, a non-invasive DNA screening test for colorectal cancer.

For its part, Illumina has been attempting to position itself firmly in the oncology space and such an acquisition would help forward that cause.

However, it was also reported this week that Illumina agreed to settle a patent infringement lawsuit brought by Enzo Life Sciences Inc. for $21 million.

The patent dispute centered on Enzo’s allegation that Illumina’s BeadArray and BeadChip technology, as well as its DNA sequencing products, infringed on one of Enzo’s patents.

Enzo has brought 11 patent lawsuits against various biotechnology and pharmaceutical companies. Including the Illumina settlement, five of those cases were settled out of court.

Mentioned in this article:

Iconix Brand Group Inc. Nasdaq: ICON

Illumina Inc. Nasdaq: ILMN

Spirit Realty Capital Inc. NYSE: SRC

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