| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers N > Headlines for NeoGenomics, Inc. > News item |
Morning Commentary: Summit Hotel convertible offering eyed; NeoGenomics soars on debut
By Abigail W. Adams
Portland, Me., Jan. 7 – New convertible paper was in focus on Thursday with one deal set to price after the market close and one making its aftermarket debut.
Summit Hotel Properties Inc. plans to price $200 million of five-year convertible notes after the market close on Thursday with price talk for a coupon of 1.5% to 2% and an initial conversion premium of 32.5% to 37.5%.
The deal was being marketed with assumptions of 550 basis points over Libor and a 35% vol., according to a market source.
Using those assumptions, sources pegged the deal 2.5 points to 2.65 points cheap at the midpoint of talk.
Meanwhile, NeoGenomics Inc.’s newly priced convertible notes were in focus in the secondary space and performing well on debut.
The cancer genetics testing company priced an upsized $300 million of seven-year convertible notes after the market close on Wednesday at par at the rich end of talk with a coupon of 0.25% and an initial conversion premium of 35%, according to a company news release.
Price talk was for a coupon of 0.25% to 0.75% and an initial conversion premium of 30% to 35%, according to a market source.
The greenshoe was also upsized to $45 million.
The company also priced a concurrent secondary offering of $200 million, or 4,081,632 common shares, at a public offering price of $49.00.
The 0.25% notes traded as high as 106 before settling into a 104-handle early in the session, a source said.
The majority of trades were outright early in the session.
With stock up big, hedge accounts were most likely letting the stock run before making a move, a source said.
NeoGenomics’ stock was changing hands at $53.64, an increase of 4.43%, shortly before 11 a.m. ET.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.