Morning Commentary: BroadSoft bringing new deal, buying back existing bonds; Vivus stock surges

By Rebecca Melvin

New York, Sept. 9 – BroadSoft Inc. launched a new convertible bond offering early Wednesday that was seen pricing after the market close, adding to a calendar that already had two deals on it for the same time slot, or nearly $1.3 billion in base deals in all.

The BroadSoft offering is for $175 million of seven-year convertible senior notes. It joined Dycom Industries Inc.’s $400 million deal of six-year convertible senior notes and Stericycle Inc.’s planned $700 million of series A mandatory convertible preferred stock.

With part of the new-deal proceeds, BroadSoft will buy back $60 million of its existing 1.5% convertibles due 2018, which was a $120 million issue when priced in 2011.

The existing BroadSoft 1.5% convertibles were seen last at 102.88, according to Trace data, but weren’t heard in trade early Wednesday.

Back in the secondary market, there was a broader group of issues trading and in higher volume than in recent sessions.

Vivus Inc. shares were surging after Icahn Enterprises LP announced a cash tender offer for the Vivus 4.5% convertible senior notes due 2020.

Icahn is bidding 68 for the bonds. Shares of the Mountain View, Calif.-based pharmaceutical company traded up by as much as 38% early Wednesday. The shares were last seen up 28 cents, or 24%, at $1.48.

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