New, upsized Microchip trades actively around issue; old Microchip flat; LinkedIn comes in

By Rebecca Melvin

New York, Feb. 6 – Microchip Technology Inc.’s new 1.625% convertibles traded actively Friday at around their issue price after the Chandler, Ariz.-based semiconductor maker priced an upsized $1.5 billion of the senior subordinated notes at the rich end and midpoint of talked terms.

The new issue was the single busiest name in the market, even if the pricing move was negligible.

“I’m bored,” a New York-based trader said. The new deal was “all that people were really looking at, and it was at issue price, dollar neutral.”

Microchip’s older 2.125% convertibles due 2037 were also active and traded at a small premium to parity, which was flat to slightly weaker compared to Thursday.

Proceeds of the new Microchip deal were used to take out $575 million face value of the old issue, or half of the $1.15 billion outstanding, for a purchase price of $1,137,000,000.

Also in the primary market, Immunomedics Inc.’s 4.75% convertible was flat to slightly higher after the Morris Plains, N.J.-based biopharmaceutical company priced $85 million of the five-year notes at the rich end and midpoint of talked terms.

The new Immunomedics bond traded at 100.25 against shares that were flat to slightly higher.

In secondary dealings, LinkedIn Corp.’s convertibles jumped on an outright basis, but came in slightly on a dollar-neutral, or hedged, basis after the Mountain View, Calif.-based business-oriented social networking service reported strong fourth-quarter results and received several stock upgrades and price target hikes.

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