Morning Commentary: Iconix mostly steady in active trade; Jarden a little higher outright

By Rebecca Melvin

New York, Dec. 14 – Iconix Brand Group Inc. remained active at pricing that was little changed on Monday as the underlying shares of the New-York-based brand management company dropped.

The Iconix 2.5% convertibles due 2016 were seen at 91.5 bid, 92.5 offered, which was little changed compared to where they have been trading in recent days.

Iconix shares dropped 62 cents, or 9%, to $5.99 in early trade.

The Iconix 2.5% convertibles were “trading to expectations of a financing to pay them off next June. If they announce a deal, I expect that given this tape, they will go to a 6% to 7% maturity from more than 21% currently.”

Jarden Corp.’s trio of convertible bonds were also trading in the early going after news that Newell Rubbermaid has agreed to buy the company for $21.00 in cash and 0.862 of a share in Newell Rubbermaid for each Jarden share. The price represents a 24% premium to where shares had been trading before word of the deal.

Rubbermaid holders will own about 55% of the combined company, which will be called Newell Brands. The tie up is expected to occur in the second quarter.

Jarden’s 1.125% convertibles due 2034, of which $690 million priced in March 2014, were seen trading between 121.5 to 122.375, which was up a little bit, in line with the underlying shares.

Jarden’s 1.5% convertibles due 2019, of which $265 million priced in 2013, were seen at 145, which was also up modestly, and Jarden’s 1.875% convertibles due 2018 traded at 176.66, also a little higher in tandem with the equity.

Shares of the Boca Raton, Fla.-based consumer products company had been up about $2.00, or 4%, in the early going but were last up $1.16, or 2.2%, at $53.84.

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