Morning Commentary: Cheniere trades up after coming at steep discount; new Gogo upsized, edges up

By Rebecca Melvin

New York, March 4 – Cheniere Energy Inc.’s newly priced 4.25% convertibles traded up early Wednesday from a steeply discounted price to par after the Houston-based energy company priced $625 million of the 30-year notes at 80.

The new Cheniere notes were trading actively and were quoted at 82.75 versus an underlying share price of $78.75, according to a Connecticut-based trader.

Cheniere shares opened lower and were seen down $2.41, or nearly 3%, in the early going, at $78.99.

The deal, which was placed directly via Lazard Freres & Co. LLC, also has a 70% premium. It was not talked in the market prior to pricing.

Also debuting on Wednesday was Gogo Inc.’s new 3.75% convertible notes, which edged up with shares, after the Itasca, Ill.-based in-flight internet and entertainment provider priced an upsized $340 million of the five-year notes at the cheap end of talked terms.

The new Gogo bonds were seen to have traded at 100.25, according to Trace data. Gogo shares were up 10 cents at $19.57.

The deal was originally expected to be $300 million in size.

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