Upsized Wright Medical pushes up outright, on hedge; old Wright adds again; Tesla in focus

By Rebecca Melvin

New York, Feb. 10 – Wright Medical Group Inc.’s newly priced 2% convertibles traded up strongly Tuesday on both an outright and hedged basis after the Arlington, Tenn.-based orthopedic medical device company priced an upsized $550 million of the five-year senior notes at the rich end of talked terms.

The new Wright Medical convertibles due 2020 were quoted at 103.875 bid, 104.375 offered versus an underlying share price of $25.72, a Connecticut-based trader said.

On a swap basis, that was up about 2.625 points, the trader said.

A syndicate source confirmed that level on the new bonds at the end of the trading session.

Wright Medical shares closed up 62 cents, or 2.5%, at $25.82.

The new bond was upsized to $550 million from an initially talked $400 million. It priced at par after the close on Monday.

Wright Medical’s older 2% convertibles due 2017, of which $240 million face value will be repurchased with proceeds of the new deal, were also higher, changing hands at 117.27, which was up 1.2 point on the day, according to Trace data.

Elsewhere, Tesla Motors Inc.’s convertibles traded actively and were seen higher by about 0.25 point on a swap basis ahead of earnings expected to be reported by the Palo Alto, Calif.-based electric car maker on Wednesday, a New York-based trader said.

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