Morning Commentary: Iconix gains in active trade; Cypress prices new 2% convertible at the mids

By Rebecca Melvin

New York, Nov. 2 – Iconix Brand Group Inc.’s convertibles traded higher in early action on Thursday as the underlying shares of the New York-based American brand management company plunged again.

The Iconix 1.5% convertibles due March 15, 2018 traded up to 79.375 to 79.5 early Thursday from a 77.5 close on Wednesday, according to Trace data.

Iconix shares were down 27 cents, or 13.4% to $1.74. Hectic trading, which has seen the stock and bonds gyrate sharply in this week’s sessions, is related to the company’s licensing agreements with Wal-Mart.

In primary action, San Jose, Calif.-based Cypress Semiconductor Corp. priced $130 million of five-year convertibles late Wednesday with a 2% coupon and an initial conversion premium of 37.5%, at the midpoint of talk. The deal was done concurrently with privately negotiated exchange transactions with holders of the company’s older 2% exchangeable due 2020.

Information on where the new bond traded upon release for secondary market action was not immediately available, but Cypress shares were 2% higher early Thursday.

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