New SunEdisons mixed in active trade; older SunEdisons up in line; Cowen launches deal

By Rebecca Melvin

New York, May 13 – SunEdison Inc.’s new $750 million of convertibles in two tranches were mixed in active trade on Wednesday after the St. Peters, Mo.-based solar technology company priced the senior notes at the rich end and beyond the rich end of talked terms, market sources said.

SunEdison’s $375 million tranche of longer-dated, 10-year notes were seen a little cheaper than the eight-year tranche, and they traded a little better, a New York-based trader said.

SunEdison’s older bonds were also active, moving up mostly in line with the underlying shares, which gained 3% in afternoon trade. The SunEdison 0.25% convertibles were quoted at late morning at 118.125 bid, 118.625 offered. Later they were seen at 120.125.

Also in primary action, Cowen Group Inc. launched an offering of $105 million of cumulative perpetual convertible preferred shares that was seen pricing after the market close Wednesday. The $1,000-par preferreds were talked at a 5.375% to 5.875% dividend and a 15% to 20% premium.

Cowen’s existing 3% convertibles due 2019 were not heard in trade but were last seen at about 122, according to Trace data. Cowen shares fell 5% after the new preferred deal was launched.

The convertibles of bankrupt Nortel Networks Corp. were also seen in trade after a court decision that the $7.3 billion of former Nortel assets will be divided on a pro rata basis between Nortel’s international units.

© 2015 Prospect News.
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