Midday Commentary: Xilinx convertibles flat after being called; Medicines down mostly in line

By Rebecca Melvin

New York, Feb. 10 - Xilinx Inc.'s 3.125% convertible debentures due 2037 changed hands little changed early Monday but were not trading actively after the San Jose, Calif.-based programmable chipmaker called the $689.64 million of debentures for redemption.

"[They] are not trading because holders are not sure if the company is going to allow holders to keep the final coupon before converting the bonds," a New York-based trader said.

The Xilinx 3.125% convertibles changed hands at 159.875, according to Trace data. It has a very high parity, so investors are likely to convert the debentures rather than redeem them ahead of the slated redemption date March 17.

Xilinx's 2.625% convertibles due 2017 were not heard in trade.

The Medicines Co.'s 1.375% convertibles due 2017 traded down sharply early Monday in line with their underlying shares after word that the U.S. Food and Drug Administration's initial review of the company's Cangrelor blood clot prevention drug recommends a new trial before being considered for approval.

The Medicines convertibles were quoted at 131.5 bid, 132.5 offered versus an underlying share price of $32.00, a New York-based trader said. That was down about 6 points on an outright basis.

They "nuked straight down earlier this morning, but may be up a small amount since then," the trader said.

Shares of the Parsippany, N.J.-based pharmaceutical company had dropped about 10% early and had been down $2.40, or 7%, at $31.82 recently.

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