Midday Commentary: New Solazyme gains in active trade; Tesla Motors paper mixed to weaker

By Rebecca Melvin

New York, March 27 - Solazyme Inc.'s newly priced 5% convertibles gained in active trade on their debut in the secondary market early Thursday after the San Francisco-based plant oils producer priced an upsized $130 million of the 5.5-year notes at the tight end of coupon talk.

The new Solazyme bonds traded at 104.25 with the underlying shares lower.

The bonds were the most actively traded name in the convertibles market, according to Trace data.

The deal was anticipated to be primarily an outright name.

Back in established issues, Tesla Motors Inc.'s two new convertibles, which priced a month ago, were mixed to lower with the underlying shares also weaker.

The Tesla 0.25% convertibles due 2019 changed hands at 92, which was down a point on the day, according to Trace data. The Tesla 1.25% convertibles due 2021 were also at 92, which was up 0.75 point, according to Trace.

Tesla shares were down $5.25 at about $208.00 on Thursday, and shares have skidded about 15% since the Palo Alto, Calf.-based electric car maker priced the upsized $2 billion of the five-year and seven-year notes at the rich end of talk on Feb. 27. But for the year to date, Tesla shares are higher.

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