New convertibles from Horizon Phama, Consolidated-Tamoka, InterDigital expand on swap

By Rebecca Melvin

New York, March 6 – Horizon Pharma plc’s newly priced 2.5% exchangeables traded up on their debut in the secondary market on Friday after the Dublin, Ireland-based specialty pharmaceutical company priced an upsized $350 million of the senior notes at the rich end and through the rich end of price talk.

Deal size was initially talked at $300 million. The new Horizon paper traded out of the chute at 102 against Thursday’s closing share price of $20.84. They also traded higher at 104.25 with shares higher.

The securities were up 2 points on a dollar-neutral basis, a New York-based trader said at late morning.

Also making a debut in the secondary market was Consolidated-Tomoka Land Co. Those new 4.5% convertibles traded up 2.5 points on a dollar-neutral basis after the Daytona, Fla.-based real estate company priced $75 million of the five-year senior notes at the midpoint of coupon talk and at rich end of premium talk.

InterDigital Inc.’s new 1.5% convertibles due 2020 were also quoted higher on swap as shares of the Wilmington, Del.-based mobile technology company slipped following pricing of $275 million of senior notes at the midpoint of talk.

Back in established issues, the secondary market was called weaker “at the margin.”

“People were pretty shocked at the rate move. The convertible market was weaker on how much rates moved,” a New York-based trader said.

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