New Pernix trades up; ServiceNow adds on swap after earnings; Mylan eyed amid merger talk

By Rebecca Melvin

New York, April 17 – Pernix Therapeutics Holdings Inc.’s newly priced 4.25% convertibles traded up on their debut in the secondary market on Friday after the Morrisville, N.J.-based specialty pharmaceutical company priced an upsized $130 million of the six-year notes at terms that were mixed compared to talk.

The bond, which priced at the cheap end of coupon talk and beyond the rich end of initial talk on the premium, were seen at 103.75 bid, 104.25 offered versus a share price of $8.45 in the early going.

Established issues were weighed down with the broader markets, which were lower amid a combination of international concerns including the Greek debt woes and weak earnings reports.

ServiceNow Inc.’s convertibles fell on an outright basis, but expanded on a dollar-neutral basis, in active trade after the San Diego, Calif.-based cloud-based IT services company reported earnings that were essentially in line with expectations but guided lower for the current quarter.

Depending on one’s hedge, the bonds opened up 0.5 point to about 1.25 points. The shares fell 11.5%.

Other names in the cloud computing sector also dropped on an outright basis.

Meanwhile, more health care deal chatter put Mylan NV’s in-the-money convertibles in the spotlight after a report that Israel-based Teva Pharmaceutical Industries Ltd. is weighing a takeover bid of the rival generic drugmaker. The Mylan 3.75% convertibles due in September traded up to 521 from around 500, according to Trace data.

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