Convertibles weaken; SunEdison, Tesla Motors down; PTC Therapeutics pulls off solid debut

By Rebecca Melvin

New York, Aug. 11 – Any strength convertibles achieved on Monday seemed to be wiped away on Tuesday as most of the market was weaker by about 0.25 point on a dollar-neutral, or hedged, basis amid a sell-off in equities following news of China’s surprise move to devalue its currency.

SunEdison Inc.’s convertible bonds, which held in or even expanded on stock losses last week after a disappointing earnings report, seemed to lose their grip on Tuesday with the shares continuing to slide.

The SunEdison 2% convertibles due 2018 traded down to 113 from 124 previously, while shares of the St. Peters, Mo.-based solar technology company fell another 14%.

Tesla Motors Inc.’s 1.25% convertibles due 2021 also traded down and were seen at 91.5 from about 93.5 previously, according to Trace data. Shares of the Palo Alto, Calif.-based electric car maker fell $4.34, or 1.8%, to $236.86.

Considering the very weak broader markets, PTC Therapeutics Inc.’s newly priced 3% convertibles traded well, a New York-based trader said.

The new PTC bonds were bid higher in the early going on Tuesday despite sharply lower common shares after the South Plainfield, N.J.-based pharmaceutical company priced $125 million of seven-year senior notes in an overnight deal at the cheap end of talked terms.

Elsewhere, Exelixis Inc.’s 4.25% convertibles due 2019 traded down to 120 from about 125, with the underlying shares near $5.75, which was down nearly 4% during the session.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.