Convertibles flat; Actavis, Anthem mandatories edge up; SunEdison plans $750 million deal

By Rebecca Melvin

New York, May 11 – U.S. convertibles were seen moving mostly in line, or flat, on a hedged basis in quiet trading on Monday.

During the session “there was no real change in valuation. There were no real news or events that were creating opportunities to trade bonds,” a New York-based trader said.

Earnings continued to cycle through for U.S. convertibles issuers quietly. But after the market close SunEdison Inc. launched an offering of $750 million of convertible senior notes in two tranches.

Actavis plc’s 5.5% convertible mandatory preferreds traded flat to slightly higher on a hedged basis after the Dublin-based specialty pharmaceutical company reported better-than-expected earnings.

Meanwhile Anthem Inc.’s 5.25% mandatories, which priced last week, were up about 0.2 point on a hedged basis, a trader said. The Indianapolis-based health benefits company priced an upsized $1,175,000,000 of the three-year units at the rich end of talked terms last Wednesday.

Elsewhere, FXCM Inc.’s convertibles traded steady on previous levels after the New York-based foreign exchange services company reported weak earnings on Friday. Shares ended down 19 cents, or 9%, at $1.96.

Citrix Systems Inc. and Twitter Inc. also traded in line.

“It was a boring day,” a trader said.

Equities remained somewhat volatile, trading little changed early in the day and moving lower in the afternoon, following a jump on Friday.

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