Kinder Morgan plans $1.6 billion mandatory; Endologix on tap for $150 million; Ctrip jumps in active trade

By Rebecca Melvin

New York, Oct. 26 – Three new issues launched on Monday in the U.S. convertible primary market, which has been in a dry patch of late. Kinder Morgan Inc. launched a $1.6 billion mandatory convertible preferred deal for same-day pricing; Endologix Inc. planned to price $150 million of three-year convertible senior notes; and CTI BioPharma Corp. is offering convertible preferred shares.

Houston-based Kinder Morgan, an energy pipeline company, also reported earnings that missed estimates and the company’s common stock ended down 5.7% on the day.

Endologix planned to price after the market close on Tuesday, and those bonds were talked to yield 2.75% to 3.25% with a 27.5% to 32.5% initial conversion premium.

The Irvine, Calif.-based aortic therapies company also reported a third-quarter loss and unveiled an acquisition – all after the market close – but its common shares remained unchanged in after-hours action. They were only fractionally lower at the end of the regular session.

CTI, a Seattle-based biopharmaceutical company, launched an offering of convertible preferred shares for $1,000 per share in a registered deal. But the series N-1 preferred shares will be converted no later than 30 days after issuance and therefore are more similar to a follow-on than a regular deal. No pricing details were immediately available.

A single name dominated trade in the U.S. convertibles secondary market: Ctrip.com International Ltd.

The Chinese internet travel company announced a share swap partnership with Qunar Cayman Islands Ltd. and its convertible bonds surged on an outright basis and expanded on swap as the common shares rose. The newer D convertibles outperformed the others, expanding by 3 points, a New York-based trader said after the market close.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.