NXP Semiconductors launches and prices $1 billion deal; secondary market mostly quiet

By Rebecca Melvin

New York, Nov. 24 – NXP Semiconductors NV was in focus on Monday as market players weighed valuations of the Dutch semiconductor components company’s $1 billion offering of five-year convertible senior notes, which priced after the market close at the cheap end of talked terms.

The NXP deal was looking a little rich to investors ahead of final terms being fixed, according to several sources.

NXP Semiconductors shares rose almost 2% during the session.

It didn’t appear that the new deal pressured market players to sell existing bonds to make room for the new paper, a market source said.

“Outrights have more cash, so there is less selling than I would have expected. They don’t need to sell,” a New York-based trader said.

In the semiconductor space, Intel Corp. was trading actively, with the Santa Clara, Calif.-based chip giant’s 2.95% convertibles seen up 0.7 point at 130.23, according to Trace data. Shares were also higher after positive growth comments in the latest issue of Barron’s magazine.

Micron Technology Inc.’s 3% convertibles due 2043 were also in trade and up in line with the underlying shares of the Boise, Idaho-based chipmaker.

Elsewhere in the technology sector, issues such as LinkedIn Corp.’s 0.5% convertibles due 2019 were in trade at about 104 and Twitter Inc.’s 0.25% convertibles changed hands at 90.28. But trading action in those names was not “meaningful,” a New York-based trader said.

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