Teva bonds improve on lower shares; Allergan mandatory drops; Chesapeake extends gains

By Rebecca Melvin

New York, May 6 – Teva Pharmaceutical Industries Ltd. was a focus in the convertibles space on Friday as the Teva 0.25% convertibles, or C bonds, traded lower outright but higher on a swap basis amid lower shares for the Petach Tikva, Israel-based pharmaceutical company, a New York-based trader said.

“The Teva Cs are ripping,” the trader said, attributing the gain to outright buyers.

Teva is scheduled to report quarterly results next week.

But Allergan plc’s listed mandatory convertibles traded down in active trade amid outright sellers, a New York-based sellsider said.

Traders were also eyeing Endo International plc, which is not a convertibles issuer, as the common stock plunged 40% after the Dublin-based specialty pharmaceutical company reported a disappointing quarterly loss and cut full-year guidance.

Chesapeake Energy Corp.’s convertibles extended gains, moving up another few points on Friday after a 2- to 3-point increase on Thursday when the Oklahoma City-based energy company posted earnings and announced $470 million in asset sales.

But Whiting Petroleum Corp.’s convertibles traded weakly onto the bid side, or at about 70.25 versus a share price of $10.70 for the Denver-based energy exploration and production company.

Atlas Air Worldwide Holdings Inc.’s 2.25% convertibles due 2022 also edged higher again after spiking on Thursday after the Purchase, N.Y.-based outsourced aircraft and aviation services company posted better-than-expected earnings and announced a pact to provide support for Amazon e-commerce deliveries.

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