Morning Commentary: Sarepta trades actively again with convertibles, shares higher; chip names eyed

By Rebecca Melvin

New York, Nov. 10 – Sarepta Therapeutics Inc.’s new 1.5% convertibles continued to dominate trading in the convertibles space early Friday as convertible chip names also garnered some focus as the sector and its equities were showing resilience amid weaker broader markets.

Sarepta’s convertible, which debuted in the secondary market on Thursday after upsizing and pricing at the tight end of talked terms, traded up another 0.75 point to 104.25 as shares also moved higher. Shares of the Cambridge, Mass.-based biomedical company were up last 80 cents, or 1.4%, to $52.91.

Chip makers higher

Semiconductor names were in focus as chip shares gained. Cypress Semiconductor Corp., which priced $130 million of five-year convertibles earlier this month, saw its 2% convertibles due 2023 at 106 bid, 106.5 offered early Friday with the underlying shares of the company up at about $17.00.

Investors have made about 6 points outright since the Cypress deal priced, a New York-based market source said.

Micron Technology Inc.’s equity sensitive 3% convertibles due 2043, moved up nearly 2 points to 154.25, in tandem with a 60 cents, or 1.4%, move to $44.09 in the common shares of the Boise, Idaho-based memory chip maker.

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