Morning Commentary: New Atlas Air slips below par with lower shares, unchanged on swap

By Rebecca Melvin

New York, May 29 – Atlas Air Worldwide Holdings Inc.’s new 2.25% convertibles slipped below par on their debut in secondary market action on Friday after the Purchase, N.Y.-based outsourced aviation services company priced $200 million of the seven-year notes at the rich end of talked terms, market sources said.

The new Atlas Air convertibles were 99.5 bid, 100 offered with the stock at around $55.40, a Connecticut-based trader said.

The new bond was called about unchanged on a swap basis.

Atlas Air shares were last down 59 cents, or 1%, at $55.30.

The new bond accounted for the majority of Friday’s convertibles action, a New York-based trader said. But back in established issues, there was some trading in the two $400 million FireEye Inc. deals, which debuted in the market on Thursday.

In the broader markets, equities were down. The Dow Jones industrial average was down 140 points, or 0.8%, at 17,985.72 at late morning.

In economic news, the first-quarter U.S. gross domestic product was revised lower, showing the economy contracted at a 0.7% annual rate, which was down from the 0.2% growth pace estimated last month by the U.S. Commerce Department.

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