DISH offers new convertibles, older notes retreat; Finisar convertibles drop on earnings

By Stephanie N. Rotondo

Seattle, March 10 – DISH Network Corp.’s 3.375% convertible notes due 2026 were dominating trading on Friday as investors responded to news of a new deal from the Englewood, Colo.-based satellite TV provider.

A trader pegged the securities in a 120 to 120.25 context. Another market source agreed with that level, calling the issue down about a deuce.

At mid-morning, a trader said volume in the 3.375% convertibles accounted for $28 million of the total $90 million in bonds traded.

As for the underlying equity, it was also faltering.

The stock was off $1.46, or 2.3%, at $62.05.

DISH said it planned to sell $1 billion of seven-year convertible notes via a Section 4(a)(2) private placement.

Price talk is for a 1.875% to 2.375% yield and an initial conversion premium of 30% to 35%.

Deutsche Bank Securities Inc. is running the books.

The new issue was expected to price after Friday’s close. However, details were not available as of press time.

Meanwhile, Finisar Corp.’s 0.5% convertible notes due 2036 and 2033 were seeing some action in the wake of the company’s third-quarter earnings results late Thursday.

The 2036 paper opened in a 99.5 to 99.75 context, according to a trader. But as the day wore on, it fell to 98.5 and then to 96.5, market sources reported.

At the low end, the convertibles were down about 11 points.

As for the 2033 paper, it was deemed down 16.25 points at 111.75.

The equity, however, was getting slammed, dropping $7.92, or 22.69%, to $26.98.

For the quarter, Finisar reported net income of $46.4 million, or 40 cents per share. On an adjusted basis, EPS was 59 cents per share.

Revenue came to $380.6 million.

Analysts polled by Zacks Investment Research had forecast adjusted EPS of 61 cents on revenue of $389.1 million.

For the current quarter – which ends in April – the Sunnyvale, Calif.-based manufacturer of optical communication components and subsystems expects to see EPS of 50 cents to 56 cents. Revenue is projected to be $360 million to $380 million.

Analysts are predicting revenue will come to $376.8 million.

Mentioned in this article:

DISH Network Corp. Nasdaq: DISH

Finisar Corp. Nasdaq: FNSR

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