Senseonics prices, trades up; GOL Linhas active post add-on; Repligen holds expansion

By Abigail W. Adams

Portland, Me., July 18 – The convertible primary market remained active mid-week with one new deal and one add-on pricing.

With a shortage of new paper in the secondary space, the new deals were performing well on their secondary market debut.

Senseonics Holdings Inc.’s newly priced convertible notes skyrocketed out of the gate with the notes up more than 7 points outright.

GOL Linhas Aereas Inteligentes SA’s 3.75% exchangeable notes due 2024 were among the most actively traded issues in the secondary space after the pricing of an add-on.

While activity surrounding Repligen Corp.’s 3.75% convertible notes due 2024 tempered on Thursday, the notes continued to hold onto their large dollar-neutral expansion.

Primary market activity is expected to continue in the July 22 week with a few new deals rumored to be on deck, a market source said.

Outside of the new paper, activity was light in the secondary space with $319 million in reported volume heading into the market close, sources said.

SSR Mining Inc.’s 2.5% convertible notes due 2039 reached new heights on an outright basis as stock gained during Thursday’s session.

Senseonics prices, rises

Senseonics priced an upsized $82 million of 5.25% convertible notes due 2025 prior to the market open on Thursday with an initial conversion premium of 20%.

The initial size of the deal was $80 million.

The notes priced concurrently with a $25 million common stock offering, which priced at $1.10 per share.

Pricing of the convertible notes was contingent on the completion of the common stock offering and the solicitation of consent from the holders of the company’s 5.25% convertible notes due 2023 to eliminate a covenant restricting the incurrence of additional debt.

Proceeds will be used to repurchase approximately $37 million of the principal amount of the company’s 5.25% convertible notes due 2023 in privately negotiated transactions, including holders that entered into the consent solicitation support agreement.

The new paper skyrocketed on its secondary market debut, a market source said.

The notes traded up to 107.5 on an outright basis by the late afternoon.

The notes came cheap, sources said.

More than $11 million of the bonds were on the tape by the late afternoon.

While stock was off 13% from Wednesday’s close, it held above the price of the secondary offering.

Senseonics stock traded to a high of $1.25 before closing the day at an intraday low of $1.10, a decrease of 14.73%.

Senseonics’ 5.25% convertible notes due 2023 were also on the tape with the notes changing hands at par.

While Senseonics’ new paper was active and performing well on Thursday, there was a limited audience for the notes, a market source said.

GOL Linhas active

GOL Linhas priced an upsized $80 million tap of its 3.75% exchangeable notes due 2024 after the market close on Wednesday at a yield of negative 0.23%.

With a reoffer price of around 120, pricing came at the rich end of talk for a reoffer price of 118 to 121.

The add-on sparked activity in the notes, which were among the most actively traded during Thursday’s session.

While down slightly from their previous level, the notes traded up to 124.25 by the late afternoon, according to a market source.

GOL Linhas stock closed Thursday at $20.85, an increase of 3.01%.

The 3.75% notes were trading around 124.625 prior to the add-on, according to Trace data.

The add-on lifted the total outstanding amount of the 3.75% convertible notes to $425 million.

Repligen activity slows

After dominating activity during Wednesday’s session, activity surrounding Repligen’s 3.75% convertible notes due 2024 tempered on Thursday.

However, the 3.75% notes held onto their large dollar-neutral expansion.

After trading upwards of 104 on Wednesday, the notes were changing hands around 103.375 Thursday afternoon.

The notes expanded 2.5 points dollar-neutral since pricing, a market source said.

Repligen stock closed Thursday at $87.79, an increase of 0.68%.

SSR Mining’s new heights

SSR Mining’s 2.5% convertible notes due 2039 hit a new outright high on Thursday.

The 2.5% notes were up more than 2.75 points outright to 113 in the mid-afternoon. They were improved about 0.25 point dollar-neutral, a market source said.

SSR Mining stock soared on Thursday, closing the day at $15.74, an increase of 5.85%.

SSR Mining recently announced it would release its second-quarter earnings on Aug. 8 and hold its earnings conference call on Aug. 9.

Mentioned in this article:

GOL Linhas Aereas Inteligentes SA NYSE: GOL

Repligen Corp. Nasdaq: RGEN

Senseonics Holdings Inc. NYSE: SENS

SSR Mining Inc. Nasdaq: SSRM

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.