New Dominion units trade well; older Dominion tranches also add; AmSurg offering on tap

By Rebecca Melvin

New York, June 26 – Dominion Resources Inc.’s newly priced 6.375% mandatory convertibles put in a strong debut upon release for secondary dealings Thursday after the Richmond. Va.-based energy company priced $900 million of the three-year equity units through the tight end of coupon talk and at the midpoint of premium talk.

The Dominion 6.375% convertibles, which have a $50.00 par, were last quoted at $52.10 bid, $52.35 offered versus a closing share price of $71.13.

Dominion’s existing convertibles, the 6.125% convertible A tranche, rallied Thursday afternoon, adding $1.06, or 1.95%, to $57.94, while the Dominion 6% convertible B tranche gained 24 cents, or 0.4% to $58.01. These two issues priced a year ago.

Dominion shares ended up $1.37, or nearly 2%, to $71.13, which was near the highs of the day.

Elsewhere, convertibles trading was light. MercadoLibre Inc.’s 2.25% convertibles due 2019, which traded actively on their debut Wednesday, were quiet and more or less unchanged on Thursday, a syndicate source said.

The bonds of the Latin American e-commerce company ended the session Wednesday at 102 bid, 102.5 offered versus the closing share price of $89.67. Shares rose another 1% plus on Thursday for a close of $90.82.

After the market close, AmSurg Corp.’s $125 million offering of mandatory convertible preferred shares was seen pricing together with a secondary stock deal.

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