SolarCity bonds plunge after disappointing loss; EZCorp adds as shares pop

By Rebecca Melvin

New York, May 10 – SolarCity Corp.’s convertibles plunged in active trade on Tuesday as the common shares plunged 21% on the heels of the San Mateo, Calif.-based solar panel company’s larger-than-expected first-quarter loss and cut in current quarter and full-year guidance.

SolarCity’s 2.75% convertibles due 2018 fell more than 10 points to about 60, and the SolarCity 1.625% convertibles due 2019 fell about 5 points to 55ish.

SolarCity shares were down about 25% at $17.00 at late morning but closed down at a slightly higher $17.82, which was down 21%.

Elsewhere, PRA Group Inc.’s convertibles also took a leg lower after the Norfolk, Va.-based financial and business service company reported earnings that missed estimates and which sent the common shares down $5.77, or 19%, to $25.04.

The PRA Group 3% convertibles were indicated lower at 76.5, compared to 83.75 previously, according to a market source.

Moving in the opposite direction, EZCorp Inc.’s convertibles traded up about 3 points in the early going on Tuesday as shares surged after the Austin, Texas-based pawn store operator reported a loss tied to its sale of the Grupo Finmart unit.

The EZCorp 2.125% convertibles due 2019 traded at 78, which was up from 75.25 last, according to Trace data. EZCorp shares were up 69 cents, or 15%, to $5.45.

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