FireEye’s deals look cheap ahead of final terms; Atlas Air deal launches; Workday drops

By Rebecca Melvin

New York, May 27 – FireEye Inc.’s $600 million of 20-year convertible senior notes were looking attractive at talked terms on Wednesday ahead of final pricing expected to be fixed after the market close.

The FireEye series A convertibles were talked at a 1.25% to 1.75% coupon, and the FireEye series B convertibles were talked at a 1.75% to 2.25% coupon, with a 30% to 35% initial conversion premium for both tranches.

Also in the primary market, Atlas Air Worldwide Holdings Inc. launched a $200 million offering of seven-year convertible notes that was talked to yield 2.25% to 2.75% with an initial conversion premium of 27.5% to 32.5%. Final terms were expected to be fixed late Thursday.

Back in established issues, Workday Inc.’s convertibles traded lower on an outright basis but appeared to be a bit better on swap after the Pleasanton, Calif.-based cloud-based computing company posted first-quarter earnings that were better than expected but revealed moderating growth that sank shares by 11%.

The Workday convertibles’ performance was dependent on delta, but one source said they looked better by about 0.75 point on swap.

Nortel Networks Corp.’s convertibles were in trade again as has been the case since judges in the company’s U.S. and Canadian bankruptcy cases opted to craft a distribution plan of their own in regards to about $7.3 billion in cash.

© 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.