World Wrestling’s new deal does well; Zillow firm; Ensco trades off; Aegean eyes market

By Stephanie N. Rotondo

Seattle, Dec. 13 – A new issue from World Wrestling Entertainment Inc. was taking up a majority of the activity in early convertible debt trading on Tuesday.

The WWE brought $200 million of 3.375% convertible senior notes due 2023, upsizing from $175 million.

The initial conversion premium is 25%.

Initial price talk was for a yield of 3.25% to 3.5% and a conversion premium of 25%.

At the end of the day, the issue was seen “either side of 101,” according to a trader.

At mid-morning, a trader said the new deal made up about $62 million of the day’s $130 million in trading volume.

“Half the volume is in one bond,” he remarked.

He said the issue was trading in a 100.5 to 100.875 context.

While the new convertibles were doing well post-pricing, the underlying stock was not.

The equity declined 83 cents, or 4.19%, to $18.98, in well-above-average trading. The shares were down $1.06, or 5.35%, at $18.85 at mid-morning.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. ran the books.

As for last week’s new deals, they were quieting down a bit after taking up the bulk of trading for the last several sessions.

A trader saw Zillow Group Inc.’s 2% convertible senior notes due 2021 at 102.5 bid, 103 offered.

“That’s about where they were yesterday,” he noted.

However, the underlying class C common shares were finally trading upward, ticking up 14 cents to $36.88.

The class A common stock also did well, adding 12 cents to finish at $36.40.

The deal came Wednesday.

Zillow announced on Monday that its greenshoe had been exercised. The $60 million over-allotment option was exercised in full, bringing total issuance to $460 million.

Zillow also said that it had used $370.2 million of proceeds from the offering to privately repurchase the Trulia LLC-linked 2.75% convertible notes due 2020.

As for Ensco plc’s $750 million offering of 3% exchangeable senior notes due 2024 – another deal priced Wednesday – they retreated more than 4.5 points to a 109 to 110 range, a market source reported.

The stock – which has been trading up with the convertibles since the deal priced – also came in, slipping 3 cents to $10.96.

The company said on Monday that $99.5 million of its $112.5 million over-allotment option had been exercised, lifting the total amount outstanding to $849.5 million.

Aegean enters the market

The new issue pipeline wasn’t done pushing out deals for the week, as Aegean Marine Petroleum Network Inc. announced a $100 million offering of five-year convertible bonds.

The Rule 144A offering is being talked with a 4% to 4.5% yield and an initial conversion premium of 20% to 25%.

Jefferies LLC is the bookrunner.

The deal includes a $15 million greenshoe.

The paper is non-callable for three years and becomes provisionally callable if the stock hits a 130% price hurdle.

About $40 million of the proceeds from the deal will be used to repay a portion of debt under a 2013 secured multicurrency revolving credit facility. Remaining funds will be used for general corporate purposes and working capital, which could include funding growth opportunities and the repurchase of a portion of the 4% convertible unsecured senior notes due 2018.

Aegean Marine is a New York-based international fuel logistics company.

Mentioned in this article:

Aegean Marine Petroleum Network Inc. NYSE: ANW

Ensco plc NYSE: ESV

World Wrestling Entertainment Inc. NYSE: WWE

Zillow Group Inc. Nasdaq: ZG/Nasdaq: Z

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