SunEdison improves; Iconix up; Whiting Petroleum flat; Hercules Offshore files Chapter 11

By Rebecca Melvin

New York, Aug. 13 – SunEdison Inc. remained a theme in the convertibles market on Thursday, and those bonds were “a little bit better across the board” on both an outright and hedged basis, a New York-based trader said.

Early in the session, the SunEdison 3.375% convertibles due 2025 were seen around 72 when the underlying shares were up nearly 10% at $15.56. That was up from 69 late Wednesday.

But shares of the St. Peters, Mo.-based solar technology company pared their gains, ending the session up 5% at $14.99, and the bonds were a little lower compared to the early levels, a trader said.

On Wednesday, the SunEdison bonds were significantly weaker, with the newest issues down in excess of 2 points on the day.

Iconix Brand Group Inc.’s 2.5% convertibles due 2016 were higher, quoted at 94 bid, 95 offered with the shares up about 2% at $13.56. The bonds had dropped last week to 87 after news that the New York-based brand management company’s founder and chief executive officer, Neil Cole, is stepping down.

Meanwhile, Whiting Petroleum Corp.’s convertibles were trading fairly actively and were unchanged on a swap basis with shares down 4% at $19.19.

Hercules Offshore Inc., a Houston-based offshore oil driller, made a pre-packaged Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for the District of Delaware, which was expected to conclude in 45 to 60 days.

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