SunEdison expands 2-3 points on hedge; Illumina sells upsized $1 billion deal

By Rebecca Melvin

New York, June 5 – SunEdison Inc.’s newly-priced 0.25% convertibles gained 2 to 3 points on a dollar-neutral basis Thursday after the semiconductor and solar technology company priced $500 million of the 5.5-year senior notes beyond the tight end of coupon talk and at the tight end of premium talk.

The new SunEdison bonds were seen last at 102 bid, 102.5 offered with the stock at $20.25, according to a syndicate source.

TPG Specialty Lending Inc.’s new 4.5% convertibles were also in trade and seen at 100.5 bid, 101 offered early on when the shares of the Fort Worth, Texas-based business development company were off about 1% at $22.61.

TPG’s shares ended a little better but still off 0.6%.

Market players were eyeing Illumina Inc.’s planned offering during the session. After the market close the Illumina deal priced as an upsized $1 billion of convertibles in two tranches at the rich end of talked terms.

The planned Illumina notes were seen in the gray market ahead of terms being fixed at 100 to 100.75, a New York-based trader said.

“It’s a large issue and a visible credit. And people have made money in it before,” the trader said of the Illumina offerings.

Also pricing after the market close was Laclede Group Inc.’s $125 million of mandatories that were seeing robust demand as the amount of mandatory paper has diminished, the trader noted.

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