Primary market resets with launch of four deals; secondary market puts in ‘dull’ session

By Rebecca Melvin

New York, June 23 – Trading action in the U.S. convertibles secondary market was quiet on Monday to start the first official week of summer, with equities ending narrowly mixed.

“There’s nothing going on. It’s very dull,” a New York-based trader said.

In the primary market, however, four new deals that tally up to $1.3 billion in base deals were launched.

Fort Worth, Texas-based Energy & Exploration Partners Inc. launched an offering of $375 million of five-year convertible subordinated notes early Monday that will price prior to its initial public offering of common shares.

The company had attempted an IPO previously in 2012 but had pulled the deal, a New York-based source noted.

After the market close, three additional deals were launched. They included California network security company Palo Alto Networks Inc.’s $500 million of convertible senior notes that were seen pricing late Tuesday. Latin American online commerce host MercadoLibre Inc.’s $300 million of five-year convertible senior notes were also pricing late Tuesday, and AmSurg Corp.’s $125 million offering of mandatory convertible preferred shares were seen pricing late Thursday together with a secondary stock deal.

Energy & Exploration, a developer of onshore, unconventional oil and gas assets in the United States, said that it plans to price $375 million of five-year convertible subordinated notes prior to an initial public offering of common shares.

Timing and price talk has not yet emerged, and it could be several days before it does, sources said.

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