Macquarie Infrastructure convertibles ‘get better and better’; Nuance bonds more active

By Stephanie N. Rotondo

Phoenix, July 24 – One name getting some play in the convertible bond market on Thursday was Macquarie Infrastructure Co. LLC, which continued to add to recent gains.

On July 10, the New York-based company sold $305 million of 2.875% convertible senior notes due 2019 at a 27.5% initial conversion premium.

“They came out two weeks ago and it’s done nothing but get better and better,” a trader said.

The trader pegged the notes early at 109.375 versus a stock price of $72.38 on a 23% delta.

Nearer to the close, the notes were seen at 109.875 versus a share price of $72.64.

The stock closed the day at $71.96, down 32 cents.

Barclays, J.P. Morgan Securities LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC ran the books on the deal.

Overall, market sources were lamenting a lack of activity in the convertibles space.

“It’s converts; it’s summer; nothing is going on,” one source said.

A trader said Nuance Communications Inc.’s 2.75% convertible notes due 2021 were “more active than they have been,” but that they were about unchanged.

He saw the notes at 99.875 bid, 100.125 offered.

Another source placed the issue at 100.125 against a stock price of $17.89, deeming the bonds up nearly half a point.

Nuance’s equity ended the session at $18.01, up 32 cents, or 1.81%.

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