Morning Commentary: Marriott Vacations remains in focus; Intercept slide continues

By Rebecca Melvin

New York, Sept. 22 – Marriott Vacations Worldwide Corp.’s convertibles remained active early Friday after those bonds debuted in the market on Thursday.

The Orlando-based vacation-ownership company priced $200 million of the five-year senior notes at the middle of price talk for a 1.5% coupon and 30% initial conversion premium, and they had improved about 1.5 points on a dollar-neutral, or swap, basis.

Elsewhere, Intercept Pharmaceuticals Inc.’s convertibles were also trading again on Friday with the shares down another 12% in the early going. The Intercept 3.25% convertibles due 2023 are down about 8 points on a dollar-neutral basis since the U.S. Food and Drug Administration warned doctors to monitor patients taking Intercept’s liver disease drug Ocaliva, a New York-based trader said.

The Intercept convertibles were last at 79 bid, 81 offered versus an underlying share price of $65.00. On Thursday, the bonds fell to about 88 from 96.50.

© 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.