NuVasive flat on swap after positive quarter; Twitter slips as stock drops; Knowles on tap

By Rebecca Melvin

New York, April 27 – NuVasive Inc.’s newer convertible bonds, which priced last month, traded up on an outright basis but were flat, or in line, on a dollar-neutral basis after the San Diego-based medical device company reported positive earnings and guidance.

The NuVasive 2.25% convertibles due 2021 gained about 3 points outright to 114.25 as shares gained 5% to $52.00.

The bonds were very actively traded and did well on an otherwise rough day for the health care sector, a trader said.

It appears that biotech and technology sector securities are coming off as funds rotate back to the energy, metals and commodities sectors, the trader said.

Twitter Inc.’s convertibles were lower on an outright basis and down slightly on a hedged basis as the common shares plunged after the San Francisco-based social media company posted mixed quarterly results and disappointing guidance late Tuesday.

The Twitter 0.25% convertibles due 2019 traded at 87 versus an underlying share price of $14.99. That was down about 0.125 point to 0.25 point on a dollar-neutral, or hedged, basis, a New York-based trader said.

The Twitter 1% convertibles due 2021 traded down to 83.75 from about 85 on Tuesday.

After the market close, Knowles Corp. launched opportunistic financing for $125 million of 5.5-year convertible senior notes. The Rule 144A deal was talked at a 3.25% to 3.75% coupon and a 27.5% to 32.5% initial conversion premium and was expected to price after the market close on Thursday.

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