Morning Commentary: Aegean Marine up from add-on issue price; Brocade extends dollar-neutral gain

By Rebecca Melvin

New York, Jan. 13 – Aegean Marine Petroleum Network Inc.’s convertibles jumped from the offer price of its $42 million add-on Tuesday, trading at 113.75 bid, 114.75 offered versus an underlying share price of $13.25, after the Athens-based marine fuel logistics company priced the additional 4% senior notes due 2018 at 111, according to a syndicate source.

Aegean Marine’s gain came despite a sharp decline in its shares, which were off 9% at $13.25. The small issue wasn’t on everyone’s radar screens, however.

Elsewhere, Brocade Communications Systems Inc.’s 1.375% convertibles, which debuted in the secondary market on Friday, further extended their gains, adding another 0.5 point early Tuesday for a cumulative dollar-neutral gain since the issue priced of 4 points, according to a New York-based trader.

Shares of the San Jose, Calif.-based storage area networking company were up 2.4% at $12.29.

Also noted in trade was Tesla Motors Inc.’s 1.25% convertibles, which moved up a point or so to about 88 as the stock of the Palo Alto, Calif.-based electric car maker gained 1% to $204.88.

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