Morning Commentary: New SunEdisons active, trading mixed; Cowen launches convertible preferreds

By Rebecca Melvin

New York, May 13 – SunEdison Inc.’s new $750 million of convertible senior notes in two tranches were trading actively on their debut early Wednesday, but price-wise, they were mixed after the paper came at the rich end and beyond the rich end of talked terms, market sources said.

The new SunEdison 2.625% eight-year convertibles were quoted a little lower at 99.625 bid, 100.125 offered versus an underlying share price that was up 0.77%.

The longer-dated SunEdison 3.375% convertibles due 2025 were higher, however, quoted at 101.2 bid, 101.7 offered with the shares up 0.77%.

Using a bond delta of about 54%, the 2025 bonds richened about a point on a hedged basis, a New York-based syndicate source said, and the 2023 bonds cheapened by about 0.625 point to 0.75 point.

SunEdison shares were last seen higher by 28 cents, or 1%, at $27.89.

SunEdison’s older bonds were also trading. The SunEdison 0.25% convertible, which priced in January, was quoted at 118.125 bid, 118.625 offered.

Also in primary action, Cowen Group Inc. launched an offering of $105 million of cumulative perpetual convertible preferred shares that were seen pricing after the market close. The $1,000 par preferreds were talked at a 5.275% to 5.875% dividend and 15% to 20% premium.

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