SanDisk adds on swap; Icahn gets tenders for 68% of Vivus bonds; SunEdison stays in focus

By Rebecca Melvin

New York, Oct. 8 – The convertibles market was quieter on Thursday as equities lagged for much of the session until the midafternoon, when they reversed course after the Federal Reserve’s September meeting minutes were released. Those minutes showed ongoing patience regarding a liftoff for interest rate increases.

Stocks gained ground in the final hour of trading with the S&P 500 stock index climbing 17.60 points, or 0.9%, on the day to 2,013.43. The index is up 4.7% since last Thursday.

SanDisk Corp. was moving up on news that the Milpitas, Calif.-based flash memory chip maker is partnering with Hewlett-Packard Co. to collaborate on new storage solutions.

The SanDisk convertibles were higher on both an outright and hedged basis.

A name that was also getting a look on Thursday but not trading was Vivus Inc. after news that Icahn Enterprises LP’s subsidiary, IEH Biopharma LLC, had successfully tendered for $170.17 million principal amount, of the 4.5% convertible senior notes due 2020, or 68% of the issue. The issue price was 68, compared to around 60 where the bonds had been before the tender.

Meanwhile, SunEdison Inc. remained a focus of trade although the complex wasn’t as active as it had been earlier in the week. It had been improving in terms of pricing after bottoming out with the share price last Wednesday into Thursday.

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