New Impax expands on hedge; NorthStar on deck; Gogo, Penn Virginia up outright

By Rebecca Melvin

New York, June 25 – Impax Laboratories Inc.’s newly-priced 2% convertibles edged up on an outright basis, and expanded 2 points on a dollar-neutral, or hedged, basis on 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 near the end of the session at 100.875 bid, 101.375 offered with the underlying shares at $46.70.

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 at a coupon talked at 4% to 4.5%.

Back in established issues, Gogo Inc.’s 3.75% convertible notes were indicated higher along with a rise in the stock of the Itasca, Ill.-based in-flight internet and entertainment provider.

The 6% climb in the underlying shares was attributed to a filing for the company’s investor day that said it expects full year adjusted EBITDA at the high end of prior guidance of $15 million to $25 million.

Penn Virginia Corp.’s 6% convertible preferred shares were higher as shares of the Radnor, Pa.-based oil and gas drilling company popped on takeover chatter.

The stock had been up as much as 20% early Thursday but came back in after the company issued a statement that it had no comment on market rumors and stating that it did not issue a press release earlier.

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