Convertibles weaker; Apollo drops with add-on; Ligand, EnerNOC flattish; planned AOL eyed

By Rebecca Melvin

New York, Aug. 13 – U.S. convertibles were weaker on Wednesday as four new issues debuted in trade.

“Everything was for sale today; I don’t know, maybe it was too much paper,” a New York-based trader said.

The four deals were for a relatively small $625 million in base deals. But another new deal for $300 million was expected to price after the market close from AOL Inc., and Priceline Group Inc. launched a deal of up to $1 billion of convertible senior notes after the close.

As for the session’s new deals, Apollo Commercial Real Estate Finance Inc.’s 5.5% convertible senior notes were described as “getting crushed” as the New York-based real estate investment trust priced a $100 million add-on of notes at 102 to an existing issue, raising the deal size to $258.75 million.

The Apollo 5.5% notes traded mostly between 101 and 101.75, and late in the session were at 101. That was a point lower than where the new issue priced and about 4 points below where the issue had been trading previously.

Ligand Pharmaceuticals Inc.’s newly priced 0.75% convertibles traded last at 99.5 bid, 100 offered with shares down 1.3% at the end of the day.

EnerNOC Inc.’s newly priced 2.25% convertibles were at 100.25 Wednesday afternoon with shares close to the flat line. Later, shares dropped down again and ended lower by 2% at $19.35.

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