Midday Commentary: New Teslas down again outright, on hedge; Akorn slips on hedge after guidance

By Rebecca Melvin

New York, March 3 -Tesla Motors Inc.'s two new convertibles, which debuted in the market on Friday, continued to lose ground early Monday, with the newly priced 0.25% five-year convertibles sinking another 2 points outright to 98 and the longer-dated 1.25% convertibles due 2021 dropping 3 points to 96.566, according to Trace data.

On a dollar-neutral, or hedged, basis, the two new Tesla bonds were down about 0.25 point to 0.375 point, assuming a delta of 60% to 65%, according to a New York-based trader.

Shares of the Palo Alto, Calif.-based electric car maker were lower but bouncing around at down 1% to down 5%.

Tesla priced the upsized $2 billion of the five-year and seven-year notes at the rich end of talk late Thursday. The older Tesla 1.5% convertibles looked to be unchanged on a dollar-neutral basis, the trader said.

Elsewhere, Akorn Inc.'s 3.5% convertibles due 2016 were down a good chunk on an outright basis at 263.469, according to Trace data, and also lower on a dollar-neutral, or hedged, basis by about 0.25 point, the trader said.

Shares of the Buffalo Grove, Ill.-based pharmaceutical company fell $2.87, or 11%, at $22.95 in the early going after reporting earnings that met expectations but weak forward guidance.

"It's still early yet," the trader said about the market overall, and "things are pretty quiet."

Meanwhile, Allegheny Technologies Inc. also changed hands and looked about 0.3 point higher with the underlying shares of the Pittsburgh-based specialty steelmaker lower by nearly 1% amid no particular news.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.