Midday Commentary: New Crown Castle mandatory edging higher; planned SanDisk gains in the gray

By Rebecca Melvin

New York, Oct. 23 - Crown Castle International Corp.'s newly priced 4.5% mandatory convertible preferreds edged up in early action on their debut in the secondary market on Wednesday, changing hands initially on either side of 101 and then seen 101.20 bid, 101.60 offered, market sources said.

The new Crown Castle issue was upsized to $850 million from $750 million and came at the tight end of revised terms.

SanDisk Corp. launched an offering of $1 billion of seven-year convertible senior notes early Wednesday, and that deal was higher in the gray market ahead of terms seen being fixed after the market close.

The new SanDisk was seen at 102.5 bid, 103.25 offered in the gray market.

"The new ones are cheaper on a vol. basis, but the old ones aren't bad," a Connecticut-based trader said referring to SanDisk's planned convertibles and existing 1.5% convertibles due 2017.

The SanDisk 1.5% convertibles were trading between 143 and 145, which was lower compared to previous levels between 146 and 148, according to Trace data.

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