Cheniere expands on hedge; new Gogo upsized, trades flattish; three deals join calendar

By Rebecca Melvin

New York, March 4 – Cheniere Energy Inc.’s newly priced 4.25% convertibles traded up on their debut Wednesday on both an outright and dollar-neutral basis after the Houston-based energy company priced $625 million of the 30-year notes at a price tag of 80 each.

The new Cheniere notes were trading actively and quoted at 82.75 versus an underlying share price of $78.75.

The Cheniere shares opened lower and closed down $2.97, or 3.7%, at $78.43.

Also debuting on Wednesday were Gogo Inc.’s new 3.75% convertible notes, which edged up with shares, after the Itasca, Ill.-based in-flight internet and entertainment provider priced an upsized $340 million of the five-year notes at the cheap end of talked terms.

The new Gogo bonds were seen to have traded at 100.25, according to Trace data. Gogo shares were up 10 cents at $19.57.

The deal was originally expected to be $300 million in size.

Cal Dive International Inc.’s 5% convertibles due 2017 were not seen to have traded after the Houston-based offshore oil and natural gas services company filed for Chapter 11 bankruptcy.

Meanwhile, a trio of new deals materialized after the market close, with final terms expected after the market close on Thursday.

Horizon Pharma plc plans to price $300 million exchangeable senior notes, InterDigital Inc. plans to price $275 million of five-year convertible senior notes and Consolidated-Tomoka Land Co. plans to price $75 million of five-year convertible senior notes.

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