Morning Commentary: New SunEdison trades in line; older SunEdisons anemic; FXCM stronger

By Rebecca Melvin

New York, Jan. 22 – SunEdison Inc.’s newly priced 2.375% convertibles traded in line with their underlying shares in the early going on Thursday after the St. Peters, Mo.-based solar technology company priced an upsized $400 million of the 7.25-year senior notes at the midpoint of talked terms, market sources said.

The new SunEdison notes were quoted at 100 versus a share price of $18.70 at late morning. The new notes also traded higher at 101.25 with the underlying shares higher at $18.90, sources said.

SunEdison shares wavered and were last down 11 cents, or 0.6%, at $18.59.

The older SunEdisons were flat to a touch weaker. The SunEdison 0.25% convertibles due 2020 traded at 94, which was down a nickel, according to Trace data.

The SunEdison 2.75% convertibles due 2021, or the Bs, changed hands at 144.9, which looked in line with the underlying shares.

FXCM Inc. was a bit stronger, changing hands at 60, compared to 58 bid, 60 offered on Wednesday, with shares up more than 60 cents, at $2.95.

Elsewhere Xilinx Inc. was in trade, and lower on an outright basis, as shares of the San Jose, Calif.-based programmable chipmaker fell after it warned that current quarter results will be lower than expected. Results for the just-completed fiscal third quarter were mixed.

The Xilinx 2.625% convertibles due 2017 fell 7.16 points to 138.27, according to Trace data.

In economic news, the European Central Bank announced a quantitative easing program that was slightly greater than expected. Under the long-anticipated program, the ECB will buy €60 billion per month of euro zone sovereign debt starting in March and running until September 2016. The originally talked program was for €50 billion a month for a year.

ECB president Mario Draghi said that bond purchases might extend beyond September 2016 if there are not clear signs that the annual rate of inflation is rising toward the bank’s 2% target.

Investors were closely watching this development, which immediately sent the euro lower against the U.S. dollar. Stocks were higher and Treasury yields lower at late morning.

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