Morning Commentary: Tesaro convertibles active, improve on buyout by GlaxoSmithKline

By Abigail W. Adams

Portland, Me., Dec. 3 – The convertibles secondary space was active early in Monday’s session with equities opening sharply higher after news broke over the weekend that U.S. president Donald Trump and China president Xi Jinping had reached a trade war truce.

While the news buoyed the overall market, focus was on Tesaro Inc.’s 3% convertible notes due 2021 after the company announced it would be bought out by GlaxoSmithKline.

The already deep-in-the-money convertible notes jumped to above double par in high volume activity as the company’s equity soared.

The notes were up more than 60 points outright to trade around 216. Tesaro stock jumped more than 58% to $73.68 early in the session.

Tesaro announced on Monday that it had entered into a definitive agreement with GlaxoSmithKline.

GlaxoSmithKline has launched a tender offer for the cancer biotech company’s outstanding shares for $75.00 a share.

The deal is valued at $5.1 billion and includes the assumption of Tesaro’s debt, the company said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.