Morning Commentary: New Medicines’ trades up on swap; Zillow convertibles jump on settlement news

By Rebecca Melvin

New York, June 7 – Medicines Co.’s newly priced 2.75% convertibles were higher in early action on Tuesday after the Parsippany, N.J.-based health care company priced $350 million of the seven-year senior notes at the midpoint of coupon talk.

The new Medicines convertible was trading at about 102 on an outright basis and seen up on swap by 1.5 points to 2 points, according to a New York-based trader.

Medicines shares were last up 25 cents, or 0.7%, at $37.21.

Elsewhere, the Zillow Group Inc. 2.75% convertibles, formerly the Trulia Inc. bonds, jumped in early trade to the mid 140s from the mid 130s, according to Trace data, after news that the real estate website settled a lawsuit over trade secrets for $130 million. The suit brought by News Corp. Move Inc. and the National Association of Realtors could have cost Zillow much more.

In the filing, Zillow agreed to pay Move $130 million but did not admit to any liability, wrongdoing or responsibility.

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