Morning Commentary: Infinera, Enphase, NanoString Technologies, BridgeBio notes on tap

By Abigail W. Adams

Portland, Me., March 4 – The convertibles primary market opened its floodgates on Wednesday with four overnight deals launching prior to the market open as equities staged a rebound on the heels of Super Tuesday election results.

BridgeBio Pharma Inc., NanoString Technologies Inc., Enphase Energy Inc. and Infinera Corp. are all in the market with offerings that are slated to price after the market close.

BridgeBio Pharma plans to price $350 million of seven-year convertible notes with price talk for a coupon of 2.25% to 2.75% and an initial conversion premium of 35% to 40%, according to a market source.

The deal was heard to be marketed with assumptions of 650 basis points over Libor and a 40% vol.

Using those assumptions, the deal modeled about 1.34 points cheap at the midpoint of talk, a market source said.

Another source saw the deal a little over 3 points cheap at the mids.

NanoString Technologies plans to price $175 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 2.375% to 2.875% and an initial conversion premium of 37.5% to 42.5%, according to a market source.

Underwriters were marketing the deal with assumptions of 650 bps over Libor and a 42% vol.

Using those assumptions, the deal modeled about 3.29 points cheap at the midpoint of talk, sources said.

Enphase Energy plans to sell $320 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 0% to 0.5% and an initial conversion premium 50% to 55%, according to a market source.

Using assumptions of 325 bps over Libor and a 45% vol., the deal looked about 0.33 point cheap at the midpoint of talk, a source said.

Another source pegged the deal about 0.5 point cheap at the mids.

Infinera plans to price $200 million of seven-year convertible notes after the market close on Wednesday with price talk for a coupon of 2% to 2.5% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Using assumptions of 750 bps over Libor and a 40% vol., the deal looked about 1.69 points cheap at the midpoint of talk, a source said.

Other sources saw the deal almost 2 points cheap.

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