Planned Medicines’ $350 million deal looks ‘fair’; Weatherford expands; Nevro on tap

By Rebecca Melvin

New York, June 6 – The Medicines Co. was in focus in U.S. convertibles on Monday after the Parsippany, N.J.-based health care company launched an offering of $350 million of seven-year convertible senior notes ahead of the market open for pricing after the market close.

The new Medicines deal did not look particularly cheap from an investor’s perspective and was seen “fair at best,” according to a New York-based trader.

A portion of the proceeds will be used to repurchase about $220 million of Medicines’ existing 1.375% convertible notes due 2017.

Medicines shares ended the session down 23 cents, or 0.6%, at $36.96.

Elsewhere Weatherford International Ltd.’s $1.1 billion of 5.875% exchangeables, which debuted in the market last week, were up again in good volume on Monday, as shares continued to rise. Investors have cheered the company’s decision to restructure last week through the exchangeable.

The Weatherford exchangeable spurted up another 5 points or so, changing hands at 116.625 early Monday with shares at $6.50. Later, the new paper was quoted at 117.875 bid, 118.125 offered versus an underlying share price of $6.63.

That was better by about 0.75 point on a swap basis, a New York-based sellsider said.

After the market close, Nevro Corp. launched a deal for $125 million of five-year convertible senior notes that was seen pricing late on Tuesday.

Shares of the California-based medical device maker remained unchanged in after-hours action.

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