Morning Commentary: NXP Semiconductors extends gains; PROS, ANI Pharmaceuticals on tap

By Rebecca Melvin

New York, Dec. 4 – NXP Semiconductors NV’s 1% convertibles were higher again early Thursday as the Dutch semiconductor components company’s $1 billion deal continued to attract market players.

The NXP convertibles were quoted at 102.5 versus an underlying share price of $76.85. That was up from Tuesday when they were seen at 101.125 with the underlying shares at $75.36 at the close.

NXP shares were down 0.8% at $76.25 early Thursday.

One trader said NXP was about the only thing currently trading in the convertibles market.

In the primary, ANI Pharmaceuticals Inc. threw its hat into the arena, launching a $100 million offering of five-year convertible senior notes that was talked to yield 3% to 3.5% with an initial conversion premium of 25% to 30%.

ANI shares fell after the offering was launched and were last seen down $8.11, or 13%, at $52.10.

ANI is a Baudette, Minn.-based specialty pharmaceutical company. Its deal was expected to price after the market close, along with PROS Holdings Inc.’s $125 million offering of five-year convertible senior notes.

The PROS deal was talked to yield 1.75% to 2.25% with a 27.5% to 32.5% premium.

PROS shares were down $2.74, or 9%, at $27.54 at late morning.

Valuations on the two rather small deals were not immediately available.

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