Convertibles trade mildly with higher shares; FireEye tranche A notes active; energy quiet

By Rebecca Melvin

New York, July 10 – Many U.S. convertibles moved in tandem with their underlying shares on Friday as optimism regarding Greece’s latest reform proposals sent equities broadly higher.

Greece has offered up a series of reforms that are in line with creditors’ earlier demands, making it more likely that the parties can strike an agreement. In exchange for reforms, Greece is asking for loans to cover its financing needs until 2018 and to restructure debt due after 2022.

FireEye Inc.’s bonds were among the most actively traded convertibles in the early going with the FireEye A tranche seen at 108.5 to 108.55, which was up from 107.875 on Thursday, according to a market source.

FireEye, the Milpitas, Calif.-based network security company, priced an upsized $800 million of 20-year convertible senior notes in two tranches at the end of May, including $400 million of 1%, series A notes and $400 million of 1.625% series B notes.

FireEye shares ended near their highs for the day, up 78 cents, or 1.6%, at $49.69.

Intel Corp.’s 3.25% convertibles due 2039 were trading at about 146 when the underlying shares of the Santa Clara, Calif.-based chipmaker were up about 0.5% last. Those bonds had traded between 144 and 147 on Thursday, according to Trace data.

But overall the convertibles space was quiet.

“It was relatively quiet, and unchanged. Energy was unchanged,” a New York-based trader said. Energy was quiet despite pressure on the underlying shares of many of those issues.

© 2015 Prospect News.
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