Midday Commentary: New Cowen trades up; Encore Capital launches deal; existing Encore Capital quiet

By Rebecca Melvin

New York, March 5 - Cowen Group Inc.'s newly priced 3% convertibles lifted in early action Wednesday after the New York-based financial services company priced a slightly upsized $130 million of the five-year senior notes at mixed terms, including the cheap end of coupon talk.

The new Cowen 3% convertibles due 2019 were seen at 102.5 to 103.5, according to a New York-based trader. Cowen shares were flat to weaker.

Meanwhile, Encore Capital Group Inc. launched an offering of $125 million of seven-year convertible senior notes that was expected to be priced after the market close and was talked at a 2.75% to 3.25% coupon and a 22.5% to 27.5% initial conversion premium, according to a syndicate source.

There wasn't any activity heard in Encore's existing convertibles.

"It's not super active to begin with being a serial issuer," a trader said of the Encore Capital issues.

But he said the two existing convertibles have performed well, indicating that it bodes well for the new deal.

Encore's 3% convertibles due 2017 were last seen at about 170, according to Trace data.

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