SunEdison convertible bonds languish below 4; Tesla up on new sedan orders; Anacor gains

By Rebecca Melvin

New York, April 4 – U.S. convertibles started the week on a quiet note on Monday with traders mostly disregarding lower equities, which were off fractionally from Friday’s year-to-date high marks, and focusing instead on a handful of issues associated with company-specific news, market sources said.

SunEdison Inc.’s convertibles traded at their lowest-ever levels after the St. Peters, Mo.-based solar, or renewable energy, company missed a coupon payment on Friday and said that it is in talks to pursue Chapter 11 bankruptcy.

The bonds traded early in the session in the 2 to 2.5 range and lifted to 3 to 4 in afternoon trade. SunEdison shares careened down 51% to about 20 cents.

Tesla Motors Inc.’s convertibles were in focus after the Palo Alto, Calif.-based electric car maker said initial orders for its new Model 3 electric sedan, slated to go into production next year, topped 253,000 in the first 36 hours after launch.

Tesla’s 1.25% convertibles due 2021 were seen ending the day at about 91, which was up from 88 on Friday and 86 on Thursday.

Tesla shares were up $9.40, or nearly 4%, to $246.99.

Anacor Pharmaceuticals Inc.’s 2% convertibles due 2023, which debuted in the convertibles market on Friday, were up more than 3 points to 108 in the early going. Shares pf the Palo Alto, Calif.-based biopharmaceutical company jumped more than $3.50, or 6%, to $60.70.

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