Morning Commentary: PTC Therapeutics convertible weighed by stock drop; Adesto eyed

By Rebecca Melvin

New York, Sept. 18 – PTC Therapeutics Inc.’s newly priced 1.5% convertibles were under pressure after the New Jersey-based biopharmaceutical company priced $250 million of the seven-year paper at the cheap end of talk in an overnight deal.

Investors turned sellers of PTC common shares, which were down $5.16, or nearly 12%, at $38.16 at late morning. The new PTC bonds were not heard trading at midday.

Pricing of the new PTC bonds came at the cheap end of talked terms for a coupon of 1% to 1.5% and an initial conversion premium of 30% to 35%.

The company was also pricing $100 million of common stock at a share price talked at $40.30 to $41.30. But the convertible note is not contingent upon the common stock offering pricing.

Meanwhile, Adesto Technologies Corp. was in focus after the Santa Clara, Calif.-based tech company announced a $70 million offering of five-year convertible senior notes.

Those notes were seen very cheap at the midpoint of price talk on assumptions that were floated of a credit spread of 800 basis points over Libor and a 40% vol.

The planned notes were talked to yield 4.25% to 4.75% with an initial conversion premium of 27.5% to 32.5%.

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