Planned Nuance convertibles slightly cheap; Teva deal timing accelerated; Inphi on tap

By Rebecca Melvin

New York, Dec. 1 – U.S. convertibles players were focused on the primary market on Tuesday as three new deals were getting things off to a good start for the last month of 2015, a New York-based trader said.

Nuance Communications Inc.’s planned $550 million of 20-year convertible bonds looked to be worth about 100.5 at the midpoint of price talk, using a credit spread of 200 basis points over Libor and 30% vol., a Connecticut-based trader said.

Nuance’s older 2.75% convertibles were flat to higher in active dealings in the early going. They were last seen at 102.5 to 103, according to a trader. Nuance shares were up about 0.9% at $21.11.

Timing for the pricing of Teva Pharmaceutical Industries Ltd.’s $3.375 billion mandatory convertible preferred deal was moved up by one day, to Wednesday after the market close, after being set initially for Thursday after the close, according to market sources.

Also in the primary market, Santa Clara, Calif.-based chip company Inphi Corp. launched an offering of $150 million of five-year convertible bonds, which was set to price after the market close on Wednesday.

Back in established issues, SunEdison Inc.’s convertibles traded flat to better but still at severely distressed levels as shares of the beleaguered renewable energy company rose amid a flurry of news headlines.

SunEdison canceled its plan to buy a $250 million stake in Brazil’s Renova Energia SA.

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