Amgen paper busy, higher as maturity nears; International Gaming firms after earnings

By Stephanie N. Rotondo

Phoenix, Jan. 22 - Amgen Inc. was dominating trading in the convertibles space on Tuesday as investors prepare for an upcoming maturity.

"They go away in nine days," one trader said, seeing the 0.375% notes due Feb. 1, 2013 trading "right around parity."

Meanwhile, International Game Technology Inc.'s convertibles were "pretty active," according to a trader, as the company released quarterly earnings.

Amgen busy ahead of maturity

Amgen's 0.375% convertible notes due Feb. 1, 2013 had the highest volume of any other convertibles issue on Tuesday, according to a trader.

The trader noted that the issue would only have a few more days to dominate, given its upcoming maturity.

Shortly before the close, the trader saw the issue trading in a 105 to 106 context, which was "right around parity," he said. After the bell, another market source placed the notes as high as 108.

The stock ended at $83.29, up $1.21, or 1.47%.

The conversion price is $79.48 per share. At pricing on Feb. 14, 2006, the initial conversion premium was 10.5%. The Thousand Oaks, Calif.-based biotechnology company used initial proceeds to buy back stock.

International Game rises

International Game Technology's 3.25% convertible notes due 2014 were trading actively as the company announced quarterly results on Tuesday.

Just past midday, a trader said the issue was trading at 105 against a $15.11 share price. By the end of business, the notes were in a 105 to 105.5 context versus a stock price of $15.22.

The common stock was up 21 cents, or 1.4%, on Tuesday.

For its fiscal first quarter ended Dec. 31, the Las Vegas-based gaming developer reported revenues of $530 million, a 19% increase year over year. Adjusted earnings per share from continuing operations were 28 cents, up from 17 cents a year earlier.

The company is in a proxy fight with investor Jason Ader, who is seeking to replace three members of the board in order to increase shareholder value and industry expertise on the board.

Mentioned in this article:

Amgen Inc. Nasdaq: AMGN

International Game Technology Inc. NYSE: IGT

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