Morning Commentary: Cobalt International Energy convertibles in mid-teens, off lows as shares sag

By Rebecca Melvin

New York, Oct. 25 – Market players in the U.S. convertibles market were fielding earnings reports from a number of issuers early Wednesday, and Cobalt International Energy Inc.’s convertibles were trading off their lows in the mid-teens with shares trading below $1.00.

The Cobalt 2.625% convertible notes due 2019 were last at 15.94 at late morning, compared to a late Tuesday trade at 11.25, according to Trace data. A year ago, the Cobalt 2.625% convertibles were trading around 50.

The Cobalt 3.125% convertibles due 2024 were at 14.98 last, after trading down to 10.25 on Tuesday and ending around 12.

Cobalt shares were down by a nickel, or 4.8%, at $0.97, trading at the low mark of recent weeks.

Medicines Co. announced restructuring plans and layoffs of more than 85% of its workforce in tandem with its third-quarter results. Shares of the Parsippany, N.J.-based biopharmaceutical company surged 8% in the pre-open but were last off $1.22, or 3.7% at $31.62. The Medicines convertibles were not seen in trade.

Ensco plc’s convertibles were down 1.7 points and trading actively against shares that were off 2.5%.

The Ensco 3% convertibles of 2024 were trading at 82.179 versus shares at $4.93.

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