New Ironwood adds on swap; Avid ‘comes in’ a bit; Proofpoint launches $150 million deal

By Rebecca Melvin

New York, June 10 – Ironwood Pharmaceuticals Inc.’s new 2.25% convertibles traded up on swap Wednesday after the Cambridge, Mass.-based pharmaceutical company priced $300 million of the seven-year senior notes at the rich end and through the rich end of talk, a New York-based trader said.

The new Ironwood bonds were seen trading at 101.25 last with the stock up 1.3%. That represented an expansion of about 0.75 point.

Earlier the new notes were quoted at 101 with the stock down a penny, and that represented a gain of about a point on swap, a trader said.

Avid Technology Inc.’s new 2% convertibles “came in a little bit,” a trader said at late morning, quoting the new notes at 100 to 100.625. Shares were down 15 cents, or 0.9%, at $16.10 at that point. The bonds earlier had been plus 0.25 point, the trader said.

Also in the primary market, Proofpoint Inc. launched an offering of $150 million of five-year convertible bonds after the market close Wednesday that were expected to price after the market close Thursday. The convertibles were talked to yield 0.75% to 1.25% with an initial conversion premium of 30% to 35%.

Proofpoint has an existing $201.25 million issue of 1.25% convertibles, which priced in 2013.

Overall convertibles were a bit firmer on Wednesday as bond markets, which were weak on Tuesday, were buoyed somewhat by a rally in the equity markets.

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