LinkedIn gains after pricing at cheap end; Aegerion regains ground; Salix shares plunge

By Rebecca Melvin

New York, Nov. 6 – LinkedIn Corp.’s newly priced 0.5% convertibles moved up in active trade on Thursday after the Mountain View, Calif.-based business-oriented social networking service priced $1.15 billion of the five-year convertibles at the cheap end and beyond the cheap end of initial talk.

The new LinkedIn bonds were seen at 102.25 bid at the open with the stock at $221.25, according to a syndicate source.

At late morning, the new LinkedIn convertibles were seen at 102.25 bid, 102.75 offered with the shares at $225.00.

“The deal did very well,” a New York-based trader said, attributing its success to revised pricing that lowered the premium and with a coupon bump up above the 0.25% talked midpoint.

Aegerion Pharmaceuticals Inc.’s 2% convertible traded up a couple of points on an outright basis and expanded on a dollar-neutral basis after the Cambridge, Mass.-based biopharmaceutical company announced that it is acquiring an orphan drug from AstraZeneca.

Aegerion tumbled last Friday on a third-quarter earnings miss and amid allegations tying the company’s chief executive to a scandal swirling around Jefferies’s global head of health care investment banking.

After the market close, Salix Pharmaceuticals Ltd. was being closely watched following disappointing earnings and the resignation of the chief financial officer of the Raleigh, N.C.-based drug company.

Also after the market close, CTI BioPharma Corp. launched an overnight deal of convertible preferred stock via bookrunner Piper Jaffray & Co.

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