New Nevro trades up out of the chute, shares higher; Tutor Perini launches new issue

By Rebecca Melvin

New York, June 8 – The U.S. convertibles primary market continued to revive on Wednesday with a new issue trading up during the session after being released for secondary dealings and a new issue launching after the market close for pricing on Thursday.

Nevro Corp.’s newly priced 1.75% convertibles traded up on their debut in the secondary market after the Redwood City, Calif.-based medical device company priced an upsized $150 million of the five-year senior notes at the rich end of talked terms.

The new Nevro convertibles were seen at 105 last, with shares up about 5.5%. Earlier in the session, the notes had been around 104 with the shares up 3%.

The new bond was better on a dollar-neutral, or hedged, basis, a market source said, having traded at 103 and north of 103 right out of the chute.

After the market close, Tutor Perini Corp. launched an offering for $125 million of five-year convertible senior notes that were being talked at a 3.25% to 3.75% coupon and 32.5% to 37.5% initial conversion premium. The Rule 144A bonds were expected to price late on Thursday.

Back in established issues, AK Steel Holding Corp.'s 5% convertibles were indicated higher by more than 10 points as shares of the West Chester, Ohio-based steel products maker surged following an analyst’s upgrade.

The AK Steel bonds were indicated better at 123.5, which was up from 110.5 previously, according to a pricing source.

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