Endo, Gilead weaker; primary market sees Electronics For Imaging, Depomed, Clovis on tap

By Rebecca Melvin

New York, Sept. 2 – Amid a generally quiet U.S. convertibles market on Tuesday, there were a few deeper, in-the-money convertibles that felt “a little heavy,” a New York-based trader said.

After the session ended, the primary market restarted with vigor as three new issues launched. Through the day a handful of international deals were also announced.

Many market participants were still “out from the holiday,” one trader said of the session. So it was “relatively quiet.” Financial markets were closed Monday for the Labor Day holiday.

Among the in-the-money issues that traded were Endo International plc’s 1.75% convertibles and the Gilead Sciences Inc. D’s, or the 1.625% convertibles due 2016.

Both were a little lower on a hedged basis as outright participation was seen coming out of the names, a trader said.

The Endo convertibles were seen around 217, which was down about 0.25 point on a dollar-neutral, or hedged, basis.

Meanwhile, three deals for $730 million in base deal proceeds were launched for pricing after the market close Wednesday.

Electronics For Imaging Inc. launched a deal of $300 million of five-year notes; Depomed Inc. launched an offering of $230 million of seven-year convertible senior notes; and Clovis Oncology Inc. is pricing $200 million of seven-year convertibles.

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