Convertibles quiet again; Ares Capital, Intel trade early; SunEdison shares tank

By Rebecca Melvin

New York, Dec. 22 – U.S. convertibles were mostly quiet again on Tuesday with Ares Capital Corp. and Intel Corp.’s among the few names that were seen changing hands as the holiday-shortened week progressed, market players said.

Financial markets are closed for Christmas on Friday.

Ares Capital’s 5.75% convertibles due 2016 were little changed at 100, as were Ares Capital’s 5.125% convertibles due 2016, according to Trace data.

Intel’s 3.25% convertibles due 2039 traded at 167. 25, which was up 1.4 points on an outright basis, and Intel’s 2.95% convertibles due 2035 traded at 128.9, which was up a point, according to Trace data.

The paper of both issuers are among the more liquid, more money-market issues in the space.

SunEdison Inc.’s convertibles were indicated sharply lower in tandem with a drop in the common shares of the renewable energy company, which underlie the convertibles.

The SunEdison securities tanked after hedge fund manager David Tepper, whose firm Appaloosa Management LP owns a 9.5% stake in SunEdison subsidiary TerraForm Power Inc., filed a request with regulators to see certain documents of TerraForm. Tepper recently questioned SunEdison’s relationship with TerraForm, which SunEdison spun off into a yieldco.

SunEdison announced earlier this month that TerraForm would pay about $799 million to acquire Vivint Solar Inc., which was lower than the initial purchase price of $922 million, according to news reports.

SunEdison’s shares fell $1.43, or 21%, to $5.31 in heavy volume.

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