New Aegerion flat to better amid weak shares; Nuance bonds active after earnings, call

By Rebecca Melvin

New York, Aug. 12 – Aegerion Pharmaceuticals Inc.’s newly priced 2% convertibles were seen flat to a little better on Tuesday depending on one’s delta, even though the underlying shares remained weak after the Cambridge, Mass.-based biopharmaceutical company priced an upsized $300 million of the senior notes at the rich end of talk.

The Aegerion deal was initially talked at $250 million in size. The bonds were quoted at 99.5 bid, 100 offered near the end of the session with the underlying shares lower by 55 cents, or 1.8% at $30.26.

“It was flat to up a half,” a trader said, referring to a 0.5 point expansion on a hedged basis.

Rex Energy Corp. launched an offering of $125 million of perpetual convertible preferred stock that was expected to price before the market open on Wednesday, and AOL Inc. launched an offering of $300 million of five-year convertible senior notes after the close that was expected to price after the market close on Wednesday.

After the market close, Apollo Commercial Real Estate Finance Inc. announced that it priced a $100 million add-on to its 5.5% five-year convertible senior notes at 102% of par.

Back in established issues, Nuance Communications Inc.’s convertibles traded actively after the Burlington, Mass.-based speech-recognition software company reported disappointing earnings that sent its shares lower by 9% and also called the older Nuance 2.75% convertibles due 2027, which become callable Aug. 20.

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