Morning Commentary: Light volume continues; BioMarin adds on swap on takeout chatter; EZCorp higher

By Rebecca Melvin

New York, July 7 – Light volumes persisted in U.S. convertibles on Thursday, but pricing was mostly steady as shares notched fractional gains.

BioMarin Pharmaceutical Inc.’s convertibles jumped on an outright basis and expanded on swap after a report that Swiss pharmaceutical company Roche is mulling a buyout offer for the San Rafael, Calif.-based pharmaceutical company, which makes a drug for a rare, genetic muscular dystrophy disease.

Last month the BioMarin bonds gained on rumors of buyout interest from Sanofi as a backup if the French drug company’s takeover bid for Medivation failed.

BioMarin Pharmaceuticals’ 1.5% convertible notes due 2020 gained at 120.625 on Thursday, according to Trace data, and were higher on swap by 0.5 point, a New York-based sellsider said.

BioMarin’s 0.75% convertibles due 2018 traded at 119.3, which was up 6.16 points outright and higher by a full point on swap.

BioMarin shares were up $7.58, of 9%, at $88.38 in heavy volume.

Elsewhere, EZCorp Inc.’s convertibles were higher on Thursday after news that the Austin, Texas-based pawn store operator is selling assets. It has entered into a definitive agreement to sell Prestaciones Finmart SAPI DE CV, Sofom E.N.R. to Alpha Holding SA de CV, in the Mexico and Colombia consumer lending markets.

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