New Liberty Media/Time Warner exchangeable jumps about a point; valuations holding in

By Rebecca Melvin

New York, Aug. 12 – Liberty Media Corp.’s new notes exchangeable for common shares of Time Warner Inc. traded up on Friday upon release for secondary dealings after an upsized $444.6 million of the 30-year paper priced at the midpoint of talked terms, according to market sources.

The Liberty Media/Time Warner 2.25% exchangeable was quoted at 101.25 bid, 101.5 offered when Time Warner’s common shares were up fractionally at about $80.60.

Pricing of the Rule 144A deal came at the midpoint of talk, which was for a 2% to 2.5% coupon and a 27.5% to 32.5% premium. Initially the deal was talked at $425 million in size.

Time Warner shares ticked up and down during the session but ultimately ended little changed at $80.44.

Not only this new deal, but all of the new deals that have priced in the past two weeks have improved, a New York-based trader said.

Dominion Resources Inc.’s 6.75% equity units, which debuted in the market on Wednesday, were quoted at 51 bid, 51.35 offered versus $76.03 for the price of the underlying common shares. Dominion priced $1.25 billion of the series A equity units due 2019.

Other than the Time Warner exchangeable, the convertibles market was pretty quiet on Friday as is typically the case on Fridays in August.

“Valuations are holding up well and the new issue market has held in very well,” a New York-based trader said.

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