Volume Spike Investor

Rambus Inc (Nasdaq: RMBS) shares are up about 2% on roughly 2 times average volume as of 12:30 p.m. Eastern Tuesday, after the chip technology company announced a $150 million offering of senior notes. The notes will pay 5% annually, have a convert price of $19.31, and mature in 2014.

In a note today by BWS Financial, it says the bull case would suggest the bonds would be converted into stock if Rambushad a positive legal development. The firm also suggests that there was possible shorting of the stock ahead of the bond pricing, which may help to explain today’s positive reaction. — Mike Tarsala