Morning Commentary: New ImmunoGen edges up on an outright basis; Dynegy launches $400 million deal

By Rebecca Melvin

New York, June 15 – ImmunoGen Inc.’s newly priced 4.5% convertibles traded slightly above par, in line with the underlying shares, early Wednesday after the Waltham, Mass.-based biotechnology company priced $100 million of the five-year senior notes at the cheap end of talked terms.

The ImmunoGen 4.5% convertibles due 2021 traded at 100.8, according to Trace data, against shares that were up 3 cents, or 0.8%, at $3.52.

The company’s stock had skidded by nearly a third on Tuesday in heavy volume after the convertibles deal was launched.

An affiliate of ImmunoGen’s financial advisor, J. Wood Capital Advisors LLC, purchased about 500,000 shares of common stock in one or more open market transactions on Tuesday prior to the pricing of the notes, according to a pricing term sheet.

Also in the primary market, Houston-based power producer Dynegy Inc. launched an offering of $400 million of three-year tangible equity units that were being talked with a distribution rate of 6.625% to 7.125% and a premium over the threshold appreciation price of 22.5% to 27.5%.

Proceeds of the registered deal along with proceeds of concurrent financing will be used to fund the company’s acquisition of ownership interests in North American power generation assets from International Power, SA, an indirect subsidiary of Engie SA, and to pay fees and expenses.

Dynegy has an existing 5.375% mandatory convertible due 2017, which has an initial conversion price of $38.75. Dynegy shares are currently at $16.31, which is down 61 cents, or 3.6%, on the day.

Elsewhere, Weatherford International Ltd.’s 5.875% exchangeables, which priced at the beginning of this month, pulled back 2.5 points on Wednesday. They were last at 116.6, according to Trace data, while the company’s stock was down 1.2% at $6.41. The paper had surged up to as high as 122 late last week.

© 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.