Morning Commentary: Greenbrier convertibles pop on earnings beat; Tesla dips as rival eyes funding

By Stephanie N. Rotondo

Seattle, April 5 – More off-the-run names were making appearances in the convertible bond market early Wednesday.

The Greenbrier Cos. Inc., for instance, announced its fiscal second-quarter results ahead of the market’s open. The results came in better than analysts expected, which helped the company’s 2.875% convertible notes due 2024 edge up to 108.875.

The issue had previously traded around 102.

The 3.5% convertible notes due 2018 were meantime pegged at 136.75, though there were trades as high as 139.75 in early dealings. That was up from levels around 128 previously.

Greenbrier’s stock (NYSE: GBX) was also better, rising over 8.5% in morning trading.

Meanwhile, Tesla Inc. continued to be on the active side. However, the 2.375% convertible notes due 2022 were coming in about 1.5 points at mid-morning, according to a market source.

The source placed the paper at 108.25.

The underlying equity (Nasdaq: TSLA) was also slipping, falling just over 1% – though still over the $300-mark – as it was reported that upstart and rival Lucid Motors was looking to raise $700 million to build a new electric car manufacturing plant in Arizona.

Peter Rawlinson is Lucid’s chief technology officer but was previously the vice president of vehicle engineering at Tesla and chief engineer of the Model S.

© 2015 Prospect News.
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