Upsized Nuance edges up in trade; planned Inphi looks cheap; Teva on tap; Pandora launches

By Rebecca Melvin

New York, Dec. 2 – Nuance Communications Inc.’s newly priced 1% convertibles edged up in active trade on Wednesday after the upsized $588 million of 20-year senior notes were released for secondary dealings.

The new Nuance bond broke at about 100.5 and closed around 101.

Also in the primary market, market players were sizing up a planned $150 million offering of five-year convertibles from Inphi Corp., a Santa Clara, Calif.-based chip company, that was expected to price after the market close after being launched late Tuesday.

The new Inphi deal looked about 2% cheap, using a credit spread of 400 basis points over Libor and 35% vol. at the midpoint of price talk, a Connecticut-based trader said.

The Inphi deal was talked at a 0.875% to 1.375% coupon and a 32.5% to 37.5% initial conversion premium.

Also set to price after the market close was Teva Pharmaceutical Industries Ltd.’s $3.375 billion mandatory convertible preferred deal, which launched on Monday. That deal looked very cheap, with a Connecticut-based market source valuing it at 103.7, using a 2 skew and credit spread of 200 basis points over Libor.

Meanwhile Oakland, Calif.-based internet radio service Pandora Media Inc. launched an offering of $300 million of five-year convertible senior notes after the market close that were talked to price with a coupon of 1.75% to 2.25% and an initial conversion premium of 25% to 30%.

Morgan Stanley & Co. LLC is the Pandora deal bookrunner.

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