New Anthem adds after upsizing; HeartWare, PHH trade on exchange offers; HeartWare prices

By Rebecca Melvin

New York, May 7 – Anthem Inc.’s newly priced 5.25% convertible equity units traded up on Thursday after the Indianapolis-based health benefits company priced an upsized $1,175,000,000 of the three-year units at the rich end of talked terms.

The Anthem 50 par units were quoted at 50.875 bid, 51.25 offered on an outright basis by a syndicate source at late morning.

That pricing was versus shares that were lower by about 1.75%, so the new units were “definitely better on swap,” the source said.

Also in primary action, HeartWare International Inc. priced $148 million of 6.5-year convertibles bonds with a 1.75% coupon and 30.5% initial conversion premium.

The new bonds came at a discounted price of 95.22, and they were indicated higher at 97 at the end of the day.

The older HeartWare 3.5% convertibles, which have been very illiquid, printed at 107 on Thursday and were seen at 108 at the end of the day, which was a couple of points lower from previous trades, sources said.

A second exchange transaction was announced Thursday. PHH Corp.’s 6% convertibles due 2017 traded up several points from their previous level at 215.5-ish after the Mt. Laurel, N.J.-based mortgage and fleet management services company said that it is exchanging any and all of the senior notes for cash, including a cash kiss of $125.00 per bond, plus interest and shares.

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