SunEdison near lows; Nvidia flat; International Consolidated Airlines sells €1 billion

By Rebecca Melvin

New York, Nov. 12 – U.S. convertibles were mostly weaker again on Thursday, with SunEdison Inc. remaining a drag in the space, while much of the action centered on the market’s bigger, liquid names. The broader markets saw weaker equities and lower oil prices on the day after Veterans Day.

“There were no real significant credit events,” a New York-based trader said of the session, and most of the action was in “on-the-run, cash names,” in which the big dealers hold inventories.

Both SunEdison’s 0.25% convertibles due 2020, which is a $600 million issue that priced in June 2014, and SunEdison’s 2.375% convertibles due 2022, a $460 million issue that priced in January 2015, traded at 41.5 on Thursday. That was more than a point lower on the day for the 0.25% convertibles and about flat for the 2.375% paper, according to Trace data.

Nvidia Corp.’s 1% convertibles were steady in active trade. There may have been some sellers in the name after a large run up in the stock last month, but pricing was little changed on Thursday.

In the primary market, Britain’s International Consolidated Airlines Group SA launched and priced €1 billion of convertible bonds overseas, at the rich end of talked terms. The Regulation S deal came in two tranches for €500 million of 0.25% five-year convertible bonds and €500 million of 0.625% seven-year convertible bonds. Both priced with an initial conversion premiums of 62.5%.

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