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%.

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.

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

© 2015 Prospect News.
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