Anacor up slightly on outright basis; new Gran Tierra adds; Rovi expands dollar neutral

By Rebecca Melvin

New York, April 1 – Convertibles players were encouraged that there were new deals in the market on Friday, which was the first day of the second quarter.

“It’s good to get a few deals, and hopefully, it keeps up,” a New York-based trader said.

Anacor Pharmaceuticals Inc.’s newly priced 2% convertibles due 2023 traded up slightly on an outright basis after $250 million of the seven-year notes priced at the midpoint of talk.

The Anacor 2% convertibles traded at 101.375, according to Trace data. But Anacor shares bounced strongly, so on a swap basis, the bonds didn’t perform that well.

Ahead of pricing, the Anacor bonds looked about 2 points cheap at the midpoint of talk.

Also in primary market action, Gran Tierra Energy Inc.’s 5% convertibles due 2021 traded a little higher at 100.5, according to Trace data. Shares of the Calgary, Alta.-based energy company were lower, however, so on a swap basis this paper performed well.

Gran Tierra priced $100 million of the five-year notes at mixed terms compared to talk.

Back in established issues, Rovi Corp.’s convertibles fell on an outright basis but expanded on a dollar-neutral, or swap, basis after news that the Santa Clara, Calif.-based software and internet media company has filed a lawsuit against Comcast Corp. for patent infringement.

“The bonds expanded on the way down,” a New York-based trader said.

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