Three deals launch in convertibles market; Unisys is 100.25 bid; CSG Systems looks cheap

By Rebecca Melvin

New York, March 9 – Two new deals were being sized up in the convertibles market during the trading session on Wednesday, and a third new deal launched after the market close. Together the new paper will boost the U.S. primary market tally to about $2 billion, up from $1 billion so far this year.

Unisys Corp.’s planned $150 million offering of five-year convertible senior notes was bid in the gray market at 100.25, ahead of final terms expected to be fixed after the market close, a New York-based trader said.

Unisys shares slumped on active trade on the heels of the convertible deal launch, skidding 28%.

CSG Systems International Inc. also dipped its toe into the convertibles primary market with an offering of $200 million of 20-year convertibles. This paper was seen about 3.75% cheap, according to a New York-based trader.

That’s “good on the surface, but it’s a small deal and average daily volume of the stock is also small, so the bonds will be illiquid and tough to trade,” the trader said.

Both deals were expected to price after the market close.

NuVasive Inc. launched a $550 million offering of five-year convertibles that was expected to price late Thursday. The majority of proceeds will be used to repurchase its existing 2.75% convertibles. Shares of the San Diego-based medical device maker were unchanged in after-hours trade.

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