Cypress Semiconductor prices new issue; Lam trades up; Rex Energy exchanging preferreds

By Stephanie N. Rotondo

Seattle, June 21 – Cypress Semiconductor Corp. priced a $250 million offering of 4.5% convertible senior notes due 2022 on Tuesday.

Upon a pricing, a trader said the new issue was taking up the bulk of the day’s early trading activity.

He placed the paper in a 104 to 104.5 context at mid-morning. That compared to a stock price of $10.10, which was off 8 cents in early trading.

“They were bid up there pretty quickly this morning,” he said of the new debt.

However, the paper came in a bit by the end of the day, trading in a range of 103 to 103.5. By then, the stock was off 15 cents, or 1.47%, at $10.03.

The bonds are convertible into common stock at an initial conversion rate of 74.1372 shares per $1,000 of notes. That equates to $13.49 per share, an initial conversion premium of 32.5%.

The deal was initially talked at a coupon of 4.5% to 5% and an initial conversion premium of 27.5% to 32.5%, according to a syndicate source.

BofA Merrill Lynch and Credit Suisse Securities (USA) LLC ran the books.

Lam Research Corp., another semiconductor name, was also on the busier side in an otherwise muted trading session.

The 1.25% convertible notes due 2018 were trading with a 147 handle, up ˝ point to 1 point. The 2.625% convertible notes due 2041 were meantime pegged at 250.

The equity was up 38 cents at $84.66.

Rex swapping preferreds

Rex Energy Corp. is exchanging some of its 6% series A convertible preferred stock into equity, the company said in a regulatory filing on Tuesday.

The preferreds, which trade over the counter, were deemed steady day over day at $6.50. However, that was down from $6.98 at the open.

The stock was meantime off 4 cents at $0.76.

Under the terms of the privately negotiated exchange, the company will issue 730,000 shares of common stock for 102,450 depositary shares representing a 1/100th interest in each preferred share.

Rex Energy is a State College, Pa.-based oil and gas exploration and production company.

Mentioned in this article:

Cypress Semiconductor Corp. Nasdaq: CY

Lam Research Corp. Nasdaq: LCRX

Rex Energy Corp. Nasdaq: REXX

© 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.