Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers N > Headlines for Newmont Mining Corp. > News item |
Newmont convertible notes rise on dividend news; Whiting paper declines after downgrade
By Stephanie N. Rotondo
Seattle, Feb. 12 – Newmont Mining Corp. was trading actively in the convertible bond market on Friday following the company’s announcement of a dividend payment on its common stock.
However, one trader opined that perhaps the 1.625% convertible notes due July 2017 were not accurately priced.
“It makes no sense,” the trader said, seeing the issue trade with a 101 handle, which he deemed a premium of over 100%. “It’s trading 0.3% to maturity, up 76%. That makes no sense.”
The trader added that there “has to be some underlying dynamic” that is keeping the bonds lifted – though he further commented that it was not the “spectacular” terms of the securities.
Newmont’s stock was up 74 cents, or 2.96%, at $25.78.
Newmont will pay 2.5 cents per share to holders on March 24.
Also busy were Whiting Petroleum Corp.’s 1.25% convertible notes due 2020, though that action was to the downside.
A trader said the paper traded at 30 early in the session, which compared to levels around 40 as of Thursday’s close.
However, the paper improved intraday, ending in a 34.25 to 34.5 context.
The stock was meantime initially trading down to $4.40 from $4.90, according to the trader. But even that pared some of its losses, ending off 41 cents, or 8.35%, at $4.50.
Whiting was downgraded by Moody’s Investors Service on Thursday to Caa1 from Ba2.
© 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.