Midday Commentary: New Layne Christensen edges up; planned ServiceNow, other deals in focus

By Rebecca Melvin

New York, Nov. 6 - Layne Christensen Co.'s newly priced 4.25% convertible notes due 2018 were trading in early action Wednesday after the Mission Woods, Kan.-based drilling, water and construction services company priced an upsized $110 million of notes toward the cheap end of 3.75% to 4.5% coupon talk and at the midpoint of 27.5% to 32.5% premium talk, a syndicate source said.

The Rule 144A Layne deal was initially talked at $75 million in size. The bonds were trading a little bit above par at about 101, the syndicate source said.

Layne shares were down nearly 2% in the early going at $17.30.

Meanwhile, market players were sizing up a windfall of new deals that launched late Tuesday. No gray markets had emerged yet in any of them though, a New York-based trader said.

The deals include ServiceNow Inc.'s $500 million of five-year convertible senior notes, talked to yield 0% to 0.5% with an initial conversion premium of 32.5% to 37.5%; Seacor Holdings Inc.'s $300 million of 15-year convertibles talked to yield 3.25% to 3.75% with an initial conversion premium of 32.5% to 37.5%; and InvenSense Inc.'s $125 million of five-year convertibles talked to yield 2% to 2.25% with an initial conversion premium of 32.5% to 37.5%.

ServiceNow is being brought by Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch. Seacor is being brought by Goldman Sachs & Co. and Deutsche Bank Securities Inc., while InvenSense is being sold via Goldman.

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