Deals from Dominion Resources, Green Plains trade above par upon pricing; SunPower drops

By Stephanie N. Rotondo

Seattle, Aug. 10 – New convertible issues from Dominion Resources Inc. and Green Plains Inc. were trading well on Wednesday.

Dominion priced $1.25 billion of 6.75% 2016 series A equity units early in the session. The $50-par paper ended the day at 50.5 bid, 50.75 offered.

The equity was also trending up, rising 28 cents to $75.01.

The $50-par units will initially be issued as 2016 series A corporate units holding a contract to purchase common stock and two 1/40 undivided beneficial ownership interests in 2% series A-1 and A-2 $1,000-par remarketable subordinated notes due 2021 and 2024, respectively.

The notes are subject to a remarketing beginning no earlier than May 13, 2019.

The reference price is $74.73, the closing price as of Aug. 9. The threshold price is $93.4056, an approximately 25% premium over the reference price.

Meanwhile, Green Plains came with $170 million of 4.125% senior convertible notes due 2022 via a Rule 144A private placement.

That issue was trading in a 102 to 103 range, a trader reported.

The equity dropped $1.18, or 5.16%, to $21.67.

Away from new issues, SunPower Corp.’s convertible bonds were getting hit in the wake of the company’s earnings announcement.

A trader said the 0.875% convertible notes due 2021 dropped nearly 9 points to 75, while the 4% convertible notes due 2023 declined as much as 14.5 points to 73.5.

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