Morning Commentary: New Integrated Device Technology adds on debut; Allergan trades in line

By Rebecca Melvin

New York, Oct. 30 – Integrated Device Technology Inc.’s newly priced 0.875% convertibles traded up on an outright basis at the open Friday after the seven-year notes of the San Jose, Calif.-based communications semiconductor company priced the deal towards the rich end and at the midpoint of talk.

The Integrated Device bonds were “coming in” a little bit by late morning, quoted at 103 versus an underlying share price of $25.28. But earlier they had been at 103.5 bid, with the stock at about $25.00, market sources said.

The Integrated Device shares were last at $25.20, which was up 87 cents, or 3.6%, on the day.

Elsewhere, Allergan plc’s mandatory preferreds were still trading in a continuation of trade from Thursday on news of a potential purchase of Allergan by New York-based Pfizer Inc.

The Allergan mandatories were trading in line with the underlying shares, a New York-based trader said.

Allergan’s stock was up about 3% from Thursday’s close. On Thursday, the Allergan mandatories were quoted at 104.5 versus an underlying share price of $310.00. That was a gain of about 0.375 point for the mandatories on the day while the stock rose $17.18, or 6%, in Thursday’s session to finish at $304.38.

Rovi Corp.’s 0.5% convertibles due 2020 traded at 74.5 versus an underlying share price of $8.69 on Friday. The Rovi shares were up a little from that level, which was Thursday’s close.

At the end of Thursday, the stock was down 23% after the Santa Clara, Calif.-based software and internet media company reported disappointing quarterly results.

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