Midday Commentary: New Spectranetics trades up, New Mountain quiet; Renewable Energy looks cheap

By Rebecca Melvin

New York, May 29 - Spectranetics Corp.'s new 2.625% convertibles traded up well early Thursday after the Colorado Springs, Colo.-based maker of single-use medical devices priced $200 million of the 20-year convertible senior notes toward the tight end and beyond the tight end of talk.

The new Spectranetics opened at 103.75 bid, 104.75 offered and traded up to 105 before action slowed somewhat, and the bonds were last seen 103.25 bid, 104.25 offered, a syndicate source. The underlying shares were last off 19 cents, or 0.9%, at $22.20.

New Mountain Finance Corp.'s newly priced 5% convertibles were not heard in trade, but its underlying shares were up 1.5% in the early going after the New York-based investment company priced $100 million of the five-year convertible senior notes at the cheap end and midpoint of talk. New Mountain shares were up 21 cents, or 1.5%, to $14.37.

Also early Thursday, Renewable Energy Group Inc. launched an offering of $125 million of five-year convertible senior notes that was seen pricing after the market close.

The bonds were described as looking pretty cheap, with one sources getting them worth 105.7 using a credit spread of 650 basis points over Libor and 35% vol. at the midpoint of talk.

A second market source said that he got them worth more than 4% cheap in his valuation of the bonds. "But the stock is getting crushed today," he added.

Renewable Energy shares were down 67 cents, or 6%, at $10.27 recently.

© 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.