Upsized FireEye tranches rise in active trade; Alpha Natural slides; Atlas Air on deck

By Rebecca Melvin

New York, May 28 – FireEye Inc.’s upsized $800 million of 20-year convertible senior notes traded actively on their debut Thursday, with both tranches quoted up to around 104.5 out of the chute after the deals priced at rich end of revised coupon talk and at the rich end of premium talk.

Ahead of the market open, both the FireEye 1% convertibles and the FireEye 1.625% bonds traded at about 104.5. After the market open, with shares up at $45.90, the bonds traded in the 104.5 bid, 105 offered range, a New York-based trader said.

Also in the primary arena, Atlas Air Worldwide Holdings Inc. was expected to price $200 million of seven-year convertible notes after the market close. That deal was talked to yield 2.25% to 2.75% with an initial conversion premium of 27.5% to 32.5%.

Back in established issues, Alpha Natural Resources Inc.’s 3.75% convertibles due December 2017, slumped further to the 18.5 level from the low to mid 20s as concerns continue to grip the overall coal sector and ahead of a coupon due on Alpha Natural straight bonds on Monday, a Connecticut-based trader said.

“I don’t know if there is any fear [related to the coupon],” the trader said. “The whole sector is struggling. It’s a one-way trade, and it’s going down.”

Alpha Natural, a coal producer based in Abingdon Va., priced $350 million of the 3.75% convertibles in May 2013.

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