Cinedigm stock drops on heels of planned deal; Tesla Motors unchanged; homebuilders quiet

By Rebecca Melvin

New York, April 23 – Cinedigm Corp. shares plunged 23% after the New York-based independent content distribution rights company launched an offering of $60 million of 20-year convertible senior notes early Thursday.

The planned Cinedigm deal was talked at a 4.5% to 5% coupon and 25% to 30% initial conversion premium and was expected to price after the market close.

Back in the secondary market, things were quiet, sources said. Tesla Motors Inc.’s three convertible bonds were narrowly mixed on the Trace tape, with a New York-based trader calling them unchanged on a dollar-neutral, or hedged, basis on the day. Tesla shares fluctuated during the session and ended fractionally lower.

Tesla’s 1.25% convertible due 2021 crossed the Trace tape at 92, which was up a point on an outright basis.

The Tesla 1.5% convertibles due 2018 were at 180.2, which was down 0.9 point outright, and the Tesla 0.25% convertibles due 2019 were at 92.7, which was down 0.4 point.

Tesla is expected to report earnings May 6.

Homebuilders were surprisingly quiet, a New York-based trader said. M/I Homes Inc. was not heard in trade after the Columbus, Ohio-based residential home builder reported results that beat estimates on both the top and bottom lines.

The M/I Homes 1.875% convertibles were indicated lower at 102.6, compared to a previous level of 105.92, according to a market source. M/I Homes shares ended down 53 cents, or 2.2%, at 23.21.

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