| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers T > Headlines for Twitter Inc. > News item |
Morning Commentary: Semtech upsizes convertibles; DexCom higher; Twitter still in play
Chicago, Oct. 7 – The first U.S. convertible bond deal in three weeks priced on Thursday and was upsized.
Semtech Corp. brought an acquisition financing bond deal through Rule 144A channels for $300 million, upsized from an expected $250 million issue.
The bonds came with a 1.625% coupon and an initial 27.5% conversion premium.
There is an opportunity for an additional $37.5 million of the bonds via the 13-day greenshoe.
DexCom shines
In a rough morning for the equity markets, one of the stand-alone positive breakouts of the group was from the pharma sector addressing diabetes.
San Diego-based DexCom, Inc. was trending, and jumping in trading, as Medicare updated its coverage for glucose monitoring, squarely in DexCom’s wheelhouse and positive news for the company.
DexCom’s two outstanding convertible bonds were just starting to move on the early Friday morning tape, responding to the good news.
The generally more active of the two, the 0.25% convertibles due 2025, leapt around 3.5 points in the first trade on the board.
The trade broke par, 100.62, the first time above 100 since May.
Generally less active, DexCom’s 0.75% bonds due 2023 zipped up 28 points in the early going, hitting 252.28 bid, a jump to a level also not seen since May.
DexCom’s stock was noted at 8.8% higher around 10:30 a.m. ET, at $103.59.
Twitter in focus
Those Twitter Inc. 0.25% convertible bonds due 2024, they are still in motion.
On Friday morning, after a very active week, the bonds were backing off their buyout euphoria, relaxing into a low 106-handle.
Since the initial jump on Tuesday afternoon when news broke that the Elon Musk deal might be back on, the bonds have been trading about 0.5 point lower every four hours of day trading.
Twitter’s stock was lower again on Friday morning, hovering around negative 1%, seen at $48.93. Tesla Inc.’s stock, related to this deal, is down 9.62% on the week thus far.
© 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.