Morning Commentary: T-Mobile trades in line with shares; Envestnet adds; Fiat, IGI on tap

By Rebecca Melvin

New York, Dec. 10 – T-Mobile US Inc.’s newly priced 5.5% mandatory convertibles traded actively early Wednesday and were seen above and below par, matching moves in the underlying shares, a syndicate source said.

At late morning, the T-Mobile $50-par mandatories were quoted at 49.875 with the underlying shares down 0.5%.

The Bellevue, Wash.-based wireless company sold $870 million of the three-year preferred shares at the cheap end of talked terms.

Envestnet Inc.’s new 1.75% convertibles were also trading actively and were seen up at about 102 with the underlying shares up fractionally after the Chicago-based financial software and services company priced an upsized $150 million of the five-year notes at the midpoint of talk.

Also in the primary market, Fiat Chrysler Automobiles NV’s planned $2.5 billion of two-year mandatory convertibles, which were seen pricing after the market close, were in focus.

Also pricing after the market close is IGI Laboratories Inc.’s $125 million of five-year convertible senior notes.

The New Jersey-based pharmaceutical company, which is planning on bringing notes to yield 3.25% to 3.75% and with an initial conversion premium of 25% to 30%, was unknown to one convertibles trader focused on health care names.

“I don’t know this company well enough yet. I never heard of it until now,” the trader said.

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