Morning Commentary: Cheniere extends gains; planned Horizon Pharma deal looks ‘cheap’

By Rebecca Melvin

New York, March 5 – Cheniere Energy Inc.’s 4.25% convertibles traded up again on Thursday, extending gains notched Wednesday on their debut in the secondary market after $625 million of the 30-year notes priced at 80.

The new Cheniere notes traded at 83.4 in the early going, according to Trace data. That was up nearly a point on an outright basis from Wednesday. Meanwhile, shares of the Houston-based energy company ticked lower, and were seen down 13 cents, or 0.2%, at $78.30 at late morning.

Otherwise the market was “super quiet,” a New York-based trader said.

News of AbbieVie Inc.’s. takeout of Pharmacyclics Inc. was putting a bit of a bid in the biotech/health care space, however, a trader said.

AbbieVie said it will buy Pharmacyclics for $21 billion, or $261.25 per share, in cash and stock.

Sunnyvale, Calif.-based Pharmacyclics is an oncology company, so oncology names are in focus, the trader said.

Meanwhile, there were three new deals cued up for pricing after the market close.

Horizon Pharma plc plans to price $300 million exchangeable senior notes. The deal was seen as “cheap paper,” according to one trader. Horizon shares were down a dime at $21.07.

InterDigital Inc. plans to price $275 million of five-year convertible senior notes. InterDigital shares were down $1.85, or 3%, at $53.70.

And Consolidated-Tomoka Land Co. plans to price $75 million of five-year convertible senior notes.

Consolidated-Tomoka shares were down $3.70, or 6%, at $55.59.

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