New NuVasive jumps on swap in active trade; older NuVasive adds a point; energy gains

By Rebecca Melvin

New York, March 11 – NuVasive Inc.’s newly priced 2.25% convertibles moved up in active trade on Friday after the San Diego-based medical device company priced $550 million of the five-year senior notes at the rich end of coupon talk and the midpoint of premium talk.

The NuVasive bonds traded late in the session at 105 and gained 3 points on a dollar-neutral, or hedged, basis, market sources said.

The bonds were the most active name of the day, with more than $150 million of the bonds changing hands, according to Trace data.

The older NuVasive 2.75% convertibles traded up to 122.5, which was up about a point from Thursday.

Proceeds of the new bond were being used to repurchase more than half of the old issue, which matures in 2017. The deal was positive for the market, a New York-based trader said.

“Bondholders received a premium for their old bonds, and they got to swap into a brand new bond, which made 3 points,” the trader said.

All told there was about $950 million in new issuance in three deals this past week, which almost doubled the issuance tally for the year to date. “It was definitely a positive for the convert market and hopefully a sign of things to come,” a trader said.

Meanwhile, the convertibles market overall was trading higher in tandem with the higher equity and oil markets.

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