New Impax Labs ‘doing fine;’ NorthStar on deck; Molycorp in focus after Chapter 11 filing

By Rebecca Melvin

New York, June 25 – Impax Laboratories Inc.’s newly priced 2% convertibles edged up early Thursday after the Hayward, Calif.-based specialty pharmaceutical company priced $500 million of the notes in an overnight deal at the cheap end of talked terms.

Impax Labs’ 2% convertibles due 2022 were quoted at 100.5 bid, 101 offered with the underlying shares down 98 cents, or 2%, at $46.83.

The new bonds were deemed cheap by one trader, who said the issue was “doing fine.”

Also in the primary market, NorthStar Realty Finance Corp.’s NorthStar Realty Europe Corp. was expected to price a $300 million sale of 18-month convertibles after the market close on Thursday.

Indications on the market’s receptivity to the NorthStar issue were not immediately available.

Back in established issues, Molycorp Inc. drew attention after the Greenwood Village, Colo.-based rare earths producer and certain subsidiaries filed voluntary petitions for Chapter 11 bankruptcy.

The company said that it has inked restructuring agreements with creditors that hold more than 70% of the company’s 10% senior secured notes. The agreement provides for a financial restructuring of the company’s $1.7 billion in debt and provides up to $225 million in new financing to support operations while the company completes negotiations, according to a release.

Molycorp’s 6% convertibles due 2017 had not yet traded on the heels of the announcement, sources said.

These bonds last traded with a 2 handle.

Molycorp shares were down 2 cents, or 5.6%, at $0.36.

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