Rambus eclipses Quotient in trades; Everbridge to price; Emergent dips; Acorda tanks

By Abigail W. Adams

Portland, Maine, Nov. 15 – Newly priced deals from Rambus Inc. and Quotient Technology hit the secondary market on Wednesday, as Everbridge Inc. hammered out the final terms of its first issue.

There was a flurry of trading activity surrounding Rambus, with notes swapping hands at least 80 times during the session, a market source said.

Quotient was a less active yet still dominant player in trading on Wednesday, a market source said. The convertibles market saw some notes continuing to trade up, even as the S&P 500 index slid 14.13 points at market close.

Emergent Biosolutions Inc.’s 2.875% convertible due 2021 was again the subject of active trading on Tuesday. Positive third-quarter earnings and increased guidance had pushed the notes up 10 points on Nov. 3.

Tuesday’s announcement the company would call the notes on Dec. 29 pushed the paper down to its lowest point since September, according to Trace data.

Acorda Therapeutics Inc.’s 1.75% convertible due 2021 tanked after the company reported five deaths during clinical tests of a Parkinson’s disease drug the company had hoped would be a major source of growth.

Rambus dominates trades

There was strong demand for Rambus’ offering of $150 million in five-year convertible notes, which priced Tuesday night with a coupon of 1.375% and an initial conversion premium of 30%.

The deal was “well oversubscribed” and generated a lot of interest, a syndicate source said.

Price talk had been for a coupon of 1.5% to 2% and an initial conversion premium of 27.5% to 32.5%.

Rambus was trading on an outright basis at 101.32 soon after hitting the market, a market source said.

Trades throughout the day largely followed Rambus’ underlying stock, with outright trades in the 101.5 to 101.75 range as stock moved up and 100.25 to 100.5 range as stocks dipped, a market source said.

The new notes were trading with about a 60% vol. on hedge, a market source said. Rambus stock closed the day at $14.49, a 0.48% decrease.

Quotient dips below par

In a first-time offering, Quotient priced $175 million in five-year convertible notes to yield 1.75% with an initial conversion premium of 40%.

Pricing came at the midpoint of coupon and the rich end of premium talk, which had been for a coupon of 1.5% to 2% with an initial conversion premium of 35% to 40%.

Quotient was trading just above par at 100.125 outright early in the session, while its stock was trading around $12.05, according to a market source.

Quotient dipped below par and was trading at 99.557 in the late afternoon as the company’s stock traded higher. Quotient stock closed the day at $12.25, a decrease of 1.21%.

Everbridge in the works

Everbridge plans to price $100 million of five-year convertible notes after the market close in a first-time issuance from the company. Price talk was for a coupon of 1.25% to 1.75% and an initial conversion premium of 22.5% to 27.5%.

Last call for Emergent

Emergent Biosolutions’ 2.875% convertible due 2021 climbed more than 10 points after the company released its third-quarter earnings results on Nov. 3 with trades in the 150 to 154 range, according to Trace data.

With stock prices predicted to reach new heights, the company announced on Tuesday it would exercise its call option on the notes on Dec. 29.

The note was actively trading during Wednesday’s session, dropping 7 points to close at 135.439, according to Trace data. Emergent’s stock also decreased, ending the day at $38.36, a decrease of 5.14%.

Holders will be able to convert the notes until Dec. 28 at a rate of 32.386 shares of common stock per $1,000 principal amount plus a make-whole payment of an additional 3.1556 shares per $1,000 principal amount.

There will be a cash settlement for the principal amount and accrued interest of any outstanding notes after Dec. 29.

Acorda tanks

Acorda Therapeutics’ 1.75% convertibles due 2021 tanked alongside the company’s stock as investors responded to headlines about the company’s Parkinson’s disease drug.

Acorda announced on Wednesday that it would halt testing of the drug tozadenant due to 5 patient deaths during clinical trials.

The note was actively traded as it plunged 13 points from Tuesday’s closing price. The convertible closed Wednesday’s session at 80.5, according to Trace data.

Acorda stock closed the day at $17.00, a decrease of 39.72%.

Mentioned in this article:

Rambus Inc. Nasdaq: RMBS

Quotient Technology NYSE: QUOT

Everbridge Inc. Nasdaq: EVBG

Emergent Biosolutions Inc. NYSE: EBS

Acorda Therapeutics Inc. Nasdaq: ACOR

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