Midday Commentary: PDL BioPharma trades at 102-103 outright; TTM Technologies retraces some gains

By Rebecca Melvin

New York, Feb. 7 - PDL BioPharma Inc.'s newly priced 4% convertibles due 2018 traded up to 102 to 103 on an outright basis after the Incline Village, Nev.-based biopharmaceutical company priced the upsized four-year senior notes at the midpoint of talk, according to a syndicate source.

PDL shares were also higher by about 25 cents, or 3%, at $8.22.

The new PDL deal was upsized to what will be $300 million if the greenshoe is exercised. The issuer is "flexible" in terms of how the proceeds will be used. Part of the proceeds will be used to pay the cost of an accompanying call spread with the remainder for repayment of debt or acquisitions of income-generating asset royalty streams, a syndicate source said.

PDL BioPharma's two existing convertibles, including its 3.75% convertibles due May 1, 2015 and 2.875% convertibles due Feb. 15, 2015 are currently convertible.

Elsewhere, TTM Technologies Inc.'s 1.75% convertibles traded back down a point or so to 105.25, according to Trace data, in tandem with a pullback in the underlying shares of the printed circuit board company. The convertibles and shares had popped on Thursday following its earnings report.

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