Morning Commentary: Mirum’s upsized convertibles price, jump on secondary debut

By Abigail W. Adams

Portland, Me., April 13 – There was an uptick of activity in the convertibles secondary space on Thursday with new paper from Mirum Pharmaceuticals Inc. making its aftermarket debut.

Mirum priced an upsized $275 million of six-year convertible notes after the market close on Wednesday at par with a coupon of 4% and an initial conversion premium of 35%.

Pricing came in line with talk for a fixed coupon of 4% and richer than talk for a fixed conversion premium of 32.5%.

The greenshoe was also upsized to $41.25 million.

The initial size of the offering was $200 million with a greenshoe of $30 million.

The new paper rocketed in the aftermarket with equities strong and Treasuries flat early in the session.

The Dow Jones industrial average was up 99 points, or 0.30%, the S&P 500 index was up 0.57%, the Nasdaq Composite index was up 1.28% and the Russell 2000 index was up 0.82%.

Mirum’s 4% convertible notes due 2029 were marked at 102.5 bid, 103.5 offered shortly after the opening bell and continued to climb as the session progressed.

“They were up right out of the gate,” a source said.

The notes climbed to 104.5 about one hour into the session.

They expanded 2.5 points to 3 points on a dollar-neutral, or hedged, basis, a source said.

There was $14 million in reported volume with about one-third of trades on swap.

Mirum’s stock was changing hands at $24.12, an increase of 2.59%, in early intraday activity.

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