Frontier edges up on swap; Anadarko ups deal; LinkedIn, Microchip firm on outright buyers

By Rebecca Melvin

New York, June 5 – Frontier Communications Corp.’s new 11.125% mandatory convertibles traded up about a point on their debut on Friday after the Stamford, Conn.-based wireline telecommunications provider priced $1.75 billion of the preferred shares at the rich end of talked terms.

The Frontier mandatories were quoted at 101 with the underlying shares up about 1.8% at $5.08.

The new Frontier expanded about 0.25 point to 0.375 point on swap, and there was a lot of activity in it, a New York-based trader said.

Also among new deals, Anadarko Petroleum Corp. priced an upsized $400 million of tangible equity units, which are exchangeable into units of its subsidiary Western Gas Equity Partners LP. Terms were mixed compared to talk.

Shares of Western Gas were off fractionally in the early going but were last up 3% at $60.01. The mandatories were not heard in trade.

Also pricing was Novatel Wireless Inc. with a $120 million deal of 5.5% convertible senior notes due 2020 with a 25% conversion premium, according to a company news release late Thursday.

Novatel is a San Diego-based provider of solutions for the Internet of Things and inventors of technology.

“Everything moved down with the bond market,” a New York-based analyst said of convertibles on Friday.

Notable exceptions were a couple of large-cap, technology names, namely LinkedIn Corp. and Microchip Technology Inc.

Buyers stepped into those names and helped them to hold in despite broad-based weakness, a market source said.

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