| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers G > Headlines for GNC Holdings, Inc. > News item |
Morning Commentary: Planned GNC deal looks cheap; NRG Yield convertibles, shares drop on earnings
By Rebecca Melvin
New York, Aug. 4 – GNC Holdings Inc.’s planned $250 million offering of five-year convertible senior notes, which launched early Tuesday, looked cheap at the midpoint of price talk using a credit spread of 300 basis points over Libor and 34% vol., a New York-based trader said.
The deal valued at about 103 at the talked 1.5% to 2% coupon range and 30% to 35% premium.
Shares of the Pittsburgh-based wellness retailer were higher in the early going.
“It’s not bad optically, and the credit is really good,” the trader said of the GNC deal.
Elsewhere, NRG Yield Inc.’s convertibles were down along with the underlying common stock of the Princeton, N.J.-based electricity generator. NRG’s second-quarter earnings and revenue missed estimates, and shares were down 11%.
The NRG 3.25% convertibles, which priced in June, were down at 92 bid versus an underlying share price of $17.85.
The older NRG 3.5% convertibles were trading at 98.625 with the shares at about $18.00. The paper was also quoted at 98 versus an underlying share price of $17.85.
Shares were last at $16.86 on Tuesday morning.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.