AMD notches positive debut despite weaker broader markets; AMD, PDC Energy deals price

By Rebecca Melvin

New York, Sept. 9 – Advanced Micro Devices Inc.’s 2.125% convertibles due 2026 traded up upon release for secondary market trading on Friday despite lower shares and negative moves in the broader markets, sources said.

The new AMD 2.125% convertibles were heard at 101.5 bid, 102 offered versus an underlying share price of $6.10, a New York-based trader said at late morning.

By the market close, the new bonds pared gains, with the underlying shares lower near $6.00, which was the issue price of a concurrent offering of common stock.

But the deal was notable due to its impeccable timing, a New York-based trader said. AMD priced an upsized $700 million of the senior notes beyond the rich end of talked terms just ahead of a strong turn lower in equities and rate worries crimping the credit and convertibles markets.

Shares of the Sunnyvale, Calif.-based chip maker closed down 32.5 cents, or 5%, at $5.90.

Also in the primary market on Friday was PDC Energy Inc.’s new 1.125% convertible due 2021. But those bonds didn’t really trade, a market source said.

The Denver-based energy company priced an upsized $175 million of the five-year senior paper beyond the rich end of talked terms.

PDC shares were moving in the opposite direction of AMD’s and were up $2.24, or 3.5%, at $67.06 at late morning.

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