Morning Commentary: New Intercept convertible adds on swap in active trade as shares slip

By Rebecca Melvin

New York, June 30 – Intercept Pharmaceuticals Inc.’s newly priced 3.25% convertibles traded actively in the early going on Thursday and were last around 100.5 on an outright basis with shares around $139.00.

But on a swap basis, the new Intercept Pharmaceutical bonds expanded by a point or more and were quoted at 101 bid, 101.625 offered versus an underlying share price of $137.00, a New York-based trader said.

Intercept shares fell in the early going after the New York-based biopharmaceutical company priced $400 million of the seven-year convertible senior notes at the midpoint of price talk before the market open.

The shares were last down $10.79, or 7.2%, at $139.08.

The new Intercept paper accounted for the lion’s share of early activity in the secondary market.

But elsewhere, Tesla Motors Inc.’s 1.25% convertibles due 2021 traded a bit, according to Trace data. And that paper was down 0.5 point on an outright basis to 82.337.

Tesla shares had traded down initially on Thursday but were last positive by $1.55, or 0.7%, at $211.74.

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