SunEdison flat to slightly higher in gray market; older SunEdisons down; FXCM bounces

By Rebecca Melvin

New York, Jan. 21 – SunEdison Inc.’s planned $350 million of 7.25-year convertible senior notes were flat to slightly higher in the gray market on Wednesday ahead of final terms seen being fixed after the market close, sources said.

A late gray market level in the SunEdison deal was 100 bid, 100.25 offered, which tightened on the offer side from 100 bid, 100.75 offered earlier in the day. But that was well below one trader’s valuation of 102.8 at the midpoint of talk, using a credit spread of 625 basis points over Libor and 37% vol.

That vol. was disputed by a second trader, who said vol. should be higher for this valuation.

Meanwhile, SunEdison’s existing convertible bonds – of which there are three for $1.8 billion outstanding – traded down in the early going Wednesday as market players eyed “another issue going on the pile.”

FXCM Inc. was a feature of trade for a third consecutive day, jumping to 58 bid, 60 offered from 41 bid, 43 offered on Tuesday, a New York-based trader said.

FXCM shares also rebounded, closing at $2.33, which was up 46% on the day. But the level was still down 80% since client losses on a spike in the Swiss franc nearly swamped the New York-based foreign exchange company.

A $300 million two-year financing arrangement from Leucadia National Corp. rescued the company.

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