Yahoo! convertible trades lower outright; Extra Space launches $500 million exchangeable

By Rebecca Melvin

New York, Sept. 14 – The U.S. convertibles market was mostly lower on Monday as equities dipped in thin volume due the Rosh Hashana holiday, traders said.

“There is nothing trading at all; it was the quietest day in the last few months,” a New York-based distressed trader said.

Amid light trading, convertibles felt heavy, he said.

Yahoo! Inc.’s 0% bond slipped below par on an outright basis and also contracted on swap by about 0.25 point, a New York-based trader said.

Elsewhere, the energy sector and China space remained weak.

Market players are still waiting for a bottom in energy prices, a trader said.

China names were also weak after another round of data showed China's investment and factory output in August missed forecasts, indicating sluggish growth for the world’s second largest economy.

Meanwhile, SunEdison Inc.’s multiple convertible issues were down with lower shares. The SunEdison 2.75% convertibles were seen around 95.5, which was down from 100. The SunEdison 6.75% convertible preferreds were down to 84.7 from 88ish, and the SunEdison 2% convertibles were seen at 98.25, which was down from 102.

In the primary arena, Extra Space Storage Inc. launched a chunky offering of $500 million of 20-year exchangeable senior notes that were talked to yield 2.625% to 3.125% with an initial exchange premium of 27.5% to 32.5%.

The new deal was expected to price late Tuesday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.