Morning Commentary: New Huron trades around issue price; Depomed slips with shares

By Rebecca Melvin

New York, Sept. 5 – Huron Consulting Group Inc.’s newly priced 1.25% convertibles were trading right around their issue price early Friday after the Chicago-based consulting company priced $225 million of the five-year notes at the cheap end of talk.

The Huron notes were called 99.5 bid, 100.5 offered, with the underlying shares at about $62.50, which was just slightly lower.

Huron shares had started out higher and have moved back down.

The paper, which priced concurrently with a call spread, was trading on swap “wrapped around issue,” a syndicate source said.

Depomed Inc.’s new 2.5% convertibles, which debuted in the market on Thursday, traded at about 100.5 with shares off 2%, which compared to trades in the new senior notes at 102 on Thursday after the Newark, Calif.-based specialty pharmaceutical company priced an upsized $300 million of the seven-year notes.

Back in established issues. Tesla Motors Inc.’s convertibles were active again and lower in line with lower shares.

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