Morning Commentary: New, upsized FireEye tranches rise in active trade; Atlas Air Worldwide on deck

By Rebecca Melvin

New York, May 28 – FireEye Inc.’s new upsized $800 million of 20-year convertible senior notes were trading actively on their debut early Thursday, with both tranches quoted up to around the 104.5 mark after the deals priced at the rich end of revised coupon talk and at the rich end of premium talk.

Both the FireEye 1% convertibles and FireEye 1.625% convertibles were trading at the same levels.

Ahead of the market open the bonds traded at 104.5. After the market open, with shares up at $45.90, the bonds traded in the 104.5 bid, 105 offered range, a New York-based trader said.

FireEye shares were last up $1.30, or nearly 3%, at $46.31.

“The FEYE bonds are flying,” the trader said.

Also in the primary market, Atlas Air Worldwide Holdings Inc. was expected to price $200 million of seven-year convertible notes after the market close. That deal was talked to yield 2.25% to 2.75% with an initial conversion premium of 27.5% to 32.5%.

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