Morning Commentary: New Stanley trades up out of the gate; Becton Dickinson remains strong

By Rebecca Melvin

New York, May 12 – Stanley Black & Decker Inc.’s newly priced 5.375% convertible traded up out of the gate early Friday after the New Britain, Conn.-based diversified power tool maker priced an upsized $675 million of the three-year equity units after Thursday’s market close, according to market sources.

The Stanley Black & Decker convert was last seen at 102 after trading up as high as 103.5 bid, 104 offered earlier in the session on the back of a higher stock price in the premarket, a New York-based trader said.

That represented a 2.5-point gain for the new paper on a dollar-neutral, or hedged, basis, the trader said.

Shares of Stanley Black & Decker were last up about 0.2% at $137.86.

Becton, Dickinson & Co.’s $2.25 billion issue of 6.125% mandatory convertible preferred stock, which priced early Thursday, continued to trade well, after closing up around the 52 level on Thursday.

Becton Dickinson shares were last up $1.61, or 0.9%, at $186.51 in early Friday trading; while the Becton, Dickinson mandatories were up about 20 cents on swap.

“Both deals went very, very well for both outright and hedged players,” the trader said. “They were a nice win for the convertibles market.”

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