Convertibles down in line with lower equities; Horizon Pharma falters; SunEdison steady

By Rebecca Melvin

New York, Dec. 11 – U.S. convertibles traded mostly lower on Friday as oil prices and equity markets slid and the slow grind to year-end remained underway.

The International Energy Agency reported that the global oversupply of oil could worsen next year, and West Texas Intermediate crude for January delivery fell $1.11, or 3%, to $35.62, extending losses for a 10% decline on the week. Meanwhile, Brent crude oil fell 4.4% on the day, and stock markets sold off, with the Nasdaq Composite index underperforming, for a 111.71 point, or 2.22%, loss for the day to 4,933.47.

Horizon Pharma plc’s convertibles traded down 3 points outright to 92.43, against a 7% decline in the underlying shares to $18.99. The sell-off was precipitated by news that the specialty drug maker is buying Crealta Holdings LLC for $510 million in cash. Crealta owns a treatment for a rare form of arthritis.

Last month, Horizon withdrew its hostile takeover offer for specialty drug company Depomed Inc. Horizon is under fire, along with other companies like Valeant Pharmaceuticals International Inc., for its drug pricing practices.

There were also a few SunEdison Inc. convertibles changing hands, and that paper seems to have mostly stabilized.

Against shares that were 3% higher, the SunEdison 2.375% convertibles due 2022 traded at 38, which was up 0.25 point on the day, and the SunEdison 3.375% convertibles due 2025 changed hands at 36, which was up 0.75 point.

© 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.