NXP Semiconductors extends gains; energy sector heavy; ANI Pharmaceuticals on tap

By Rebecca Melvin

New York, Dec. 4 – NXP Semiconductors NV’s 1% convertibles traded higher Thursday as the Dutch semiconductor components company’s $1 billion issue, which priced last week, continued to attract market players.

Energy convertibles remained in focus, but they were not trading actively as buyers were scarce, and opinion remained divided on the outlook for the sector.

Crude oil prices were down on Thursday to the $66 per barrel mark.

Financials and health care names were among the quieter areas of the convertibles market on Thursday, a New York-based trader said. But Salix Pharmaceuticals Ltd.’s convertibles traded up on both an outright and dollar-neutral, or hedged, basis amid renewed speculation that a takeout of the Raleigh, N.C.-based specialty drug company may get done at a strong premium to shares, a trader said.

In the primary market, ANI Pharmaceuticals Inc. threw its hat into the arena, launching a $100 million offering of five-year convertible senior notes that was talked to yield 3% to 3.5% with an initial conversion premium of 25% to 30%.

Shares of ANI, a Baudette, Minn.-based specialty pharmaceutical company, fell 11% to $53.45 after the new deal was launched.

ANI was expected to price after the market close with PROS Holdings Inc.’s $125 million offering of five-year convertible senior notes. The PROS deal was talked to yield 1.75% to 2.25% with a 27.5% to 32.5% premium.

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