New WebMD gains on debut; existing WebMDs mixed; Renewable Energy to price; Ionis plunges

By Rebecca Melvin

New York, May 26 – WebMD Health Corp.’s newly priced 2.625% convertibles were well received in the market on Thursday, with a bid for the new notes at 102 even before final terms were set, according to a New York-based trader.

The new bonds priced ahead of the open after overnight marketing. They came at the cheap end of talked terms, which were for a 2.125% to 2.625% coupon and a 30% to 35% premium.

The new WebMD bonds were up at 102.75 on an outright basis around mid-session when shares of the Elmwood Park, N.J.-based provider of health information services were down $3.86, or 6%, at $63.12.

The new bonds traded actively, accounting for the lion’s share of the day’s trading volume, according to Trace data.

WebMD’s existing convertibles were also trading actively in mixed action. The WebMD 2.5% convertibles due 2018 edged up slightly from low prints notched Wednesday. They were at 114.73 compared to 114.25 on Wednesday, but still down from 117.25 on Tuesday.

Also in the primary arena, Renewable Energy Group Inc. launched an offering of $125 million of 20-year convertible senior notes that was seen pricing after the market close at a 3.5% to 4% coupon and 25% to 30% premium.

Back in established issues, Ionis Pharmaceuticals Inc.’s 1% convertible bonds due 2021 slid 12 or 13 points on an outright basis on Thursday into the mid-70s after news that GlaxoSmithKline, the co-developer of its therapy for patients with TTR amyloid cardiomyopathy, has decided not to initiate a Phase 3 study with the Carlsbad, Calif.-based developer of gene-based drugs.

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