We would have preferred slightly more attractive terms on the new Acorda Therapeutics convertible, but there's still much to recommend. At $300 million plus shoe, slightly over 20% of the company's market capitalization, the deal is a shade large for a company this size. We would have also preferred a 2 handle on the coupon given the initial premium of 32.5% and the seven-year tenor.
But perhaps this is quibbling in a hungry marketplace. Acorda has been around for nearly 20 years. Almost next door to us here in Westchester County, Acorda has access to the medical resources that have made the county an underappreciated hotbed for biotech. Think Regeneron. A registered deal never hurts, making the bonds more accessible to separate accounts for those managers willing to look beyond an absence of accounting earnings.Read More