By Rebecca Melvin
New York, Sept. 27 – The convertibles of Array BioPharma Inc. jumped again in active trade on Tuesday as the common shares of the Boulder, Colo.-based-biopharmaceutical company extended gains on the heels of news Monday that its melanoma therapy met its primary endpoint in a phase 3 trial.
The Array 3% convertibles due 2020 traded at 121.25 in the early going Tuesday, which was up about 5 points on the day, according to Trace data. On Monday they surged up to about 115 from the mid-80 range.
Array shares were up another 3% to $6.82 after surging on Monday.
Elsewhere, Priceline Group Inc.’s convertibles were down fractionally against small gains in the common shares of the Norwalk, Conn.-based online travel services company.
The Priceline 1% convertibles due 2018 traded down about 0.8 point to 157.
The Priceline 0.9% convertibles due 2021 traded down 0.25 point to 107, and the Priceline 0.35% convertibles due 2020 traded at 126.35.
Priceline shares were up $6.36, or 0.4%, to $1,453.51.
New deals launched and priced in both the United States and internationally.
New Mountain Finance Corp. priced a $35 million add-on to its 5% convertibles to form a single series with its existing $115 million aggregate principal amount of 5% unsecured convertible notes due 2019. The registered deal priced at 100.75% of par plus accrued interest from June 15, 2016 and at a 14.4% initial conversion premium over the last reported sale price of New Mountain’s common stock on the New York Stock Exchange on Sept. 26.
Proceeds of the notes, which mature June 15, 2019, will be used to repay outstanding debt under the company’s credit facilities and for other general corporate purposes, including working capital purposes.
New Mountain is a New York-based investment company.
After the market close, Great Plains Energy Inc. launched a $750 million issue of mandatory convertible preferred stock and a concurrent offering of 52.6 million shares of common stock.
The proceeds of both offerings will be used to finance a portion of the cash consideration payable in connection with its previously announced acquisition of Westar Energy Inc.
Kansas City, Mo.-based Great Plains is the holding company of Kansas City Power & Light Co. and KCP&L Greater Missouri Operations Co.
Another finance sector company, Goldman Sachs BDC Inc., launched an offering after the market close of up to $100 million of 6.5-year convertible senior notes. The deal’s timing and talk were not available at Prospect News’ deadline.
Goldman Sachs BDC is a specialty finance company formed by Goldman Sachs Inc. to invest primarily in middle-market companies in the United States.
Overseas, Credit Agricole SA priced €308 million of three-year 0% bonds exchangeable for existing shares of Eurazeo SA at 104.12% of nominal par value to yield minus 1.34% with an initial exchange premium of 27.5%, according to a company news release.
Pricing of the Regulation S deal came toward the cheap end of talk. The deal was being talked at an issue price of between 103.25% and 105% of par, corresponding to a gross yield to maturity of between minus 1.61% and minus 1.06% and with an initial exchange premium of between 27.5% and 32.5%.
Credit Agricole is a Paris-based retail bank.
Eurazeo is an investment fund of which Credit Agricole currently holds about 14.9%.
Also pricing on Tuesday was a $220 million deal of five-year convertible notes by NQ Mobile Inc. The entirety of the Regulation S deal was being purchased by Zhongzhi Hi-Tech Overseas Investment Ltd.
Mentioned in this article:
Array BioPharma Inc. Nasdaq: ARRY
Credit Agricole SA France: ACA
| Eurazeo SA: | France: RF
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| Goldman Sachs BDC Inc. NYSE: GSBD
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| Great Plains Energy Inc. | NYSE: GXP
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| New Mountain Finance Corp. | NYSE: NMFC
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| NQ Mobile Inc. | NYSE: ADR: NQ
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| Priceline Group Inc. | Nasdaq: PCLN
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