Morning Commentary: Horizon Pharma jumps outright; health care bid remains strong; Intel active

By Rebecca Melvin

New York, March 30 – Horizon Pharma plc’s exchangeable bonds traded up on an outright basis early Monday after news that the Dublin, Ireland-based specialty pharmaceutical company has agreed to buy Hyperion Therapeutics for $46.00 per share in cash, or about $1.1 billion.

Horizon Pharma’s 2.5% exchangeables due 2022 traded up to 115.25 bid, 115.75 offered versus an underlying share price of $24.95, a Connecticut-based trader said. The convertibles were last in the 105ish range.

Horizon Pharma shares were last up $3.19, or 14.5%, at $25.00.

The gain represented a 0.375 point expansion on a dollar-neutral, or hedged, basis on a light delta, the trader said. On heavier deltas, the convertible may not have fared as well.

Horizon Pharma priced $400 million of the exchangeables on March 5.

Horizon Pharma also has a 5% convertible note due 2018 of which there is $28.7 million outstanding.

The health care space had other M&A news on Monday, including Teva Pharmaceutical Industries Ltd.’s bid to buy Auspex Pharmaceuticals Inc. for $101.00 per share, or about $3.5 billion in cash, which represents a 42% premium over Auspex’s Friday closing share price.

Teva’s 0.25% convertibles due 2026 were seen trading at 144 and 148.73, according to Trace data, which was little changed compared to 144 and 148 on Friday.

Shares of the Petach Tikva, Israel-based generic drug maker were up about 3%.

Topping the Trace volume tape were Intel Corp.’s convertibles, which were mixed in trade, after reports on Friday that the chip giant is in talks to buy Altera Corp.

© 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.