Morning Commentary: Twitter, SunEdison, Yahoo! dominate as investors react to recent news

By Stephanie N. Rotondo

Phoenix, Nov. 13 – Recent issuer-specific news was driving activity in the convertible bond market in early Thursday trading.

According to one trader, Twitter Inc., SunEdison Inc. and Yahoo! Inc. were dominating trading in the space. Each of those names had fresh news out on Wednesday.

For Twitter, the company held its first analysts day on Wednesday. During the conference, the company gave more details on how it plans to grow its business, and investors seemed pleased with the scheme.

The 0.25% convertible notes due 2019 – a Rule 144A issue – traded as high as 92 early in the day, up slightly from Wednesday levels.

The company’s stock (NYSE: TWTR) was up 44 cents at mid-morning, trading at $42.98.

SunEdison meantime announced on Wednesday that it had found a partner in the Philippines to build solar power plants. But investors didn’t seem overly pleased with the deal.

The 2.75% convertible notes due 2021 – another Rule 144A bond – fell to 139 from 142. The stock (NYSE: SUNE) was off 30 cents in early trades at $17.57.

In Yahoo! paper, the 0% convertible notes due 2018 were straddling 113, up a quarter-point or so from previous levels.

The notes were also a Rule 144A deal.

The equity (Nasdaq: YHOO) was up 21 cents at $50.81.

The gains came as two of the company’s top investors reportedly sought to encourage a merger between Yahoo! and AOL. AOL management is said to be receptive to the idea.

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