Midday Commentary: New Encore Capital seen 101 early with shares flat; DryShips, Tesla active

By Rebecca Melvin

New York, March 6 - Encore Capital Group Inc.'s newly priced 2.875% convertibles edged up to 101 around the open Thursday after the San Diego-based specialty finance firm priced an upsized $140 million of the seven-year paper toward the rich end of coupon talk and at the midpoint of premium talk.

The new Encore notes were quoted at 101 when the stock was flattish, but by late morning the stock was higher by more than 2%, so those bonds might move higher, a market source said.

DryShips Inc. remained active and was a little higher around par after being a big feature of trade on Wednesday.

Tesla Motors Inc. remained active also and was a touch higher. The new longer-dated notes, or the 1.25% convertibles due 2021, traded at 99.25, which was higher by less than 0.125 point, according to Trace data.

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