Midday Commentary: Proofpoint shares off after positive convertibles debut; RPM up; Cobalt lower

By Rebecca Melvin

New York, Dec. 9 - The convertible bond market got off to a quiet start on Monday as traders eyed what is likely to be one more week of decent activity before the year-end slowdown begins.

Shares of Proofpoint Inc., which priced $175 million of 1.25% five-year convertibles late last week, were down 3% in early action. But the Proofpoint convertibles weren't heard in trade after ending at 99.25 bid, 99.75 offered on their debut Friday, with the shares down more than 4%.

But RPM International Inc., which priced $200 million of 2.25% seven-year convertibles last week, saw those bonds continue to climb. They changed hands at 108.75, which was up 1.75 points on the day on an outright basis, according to Trace data. On their debut last Wednesday, the convertibles gained 3 points or so on an outright basis to 103.375 bid, 103.875 offered, with the shares at $39.53.

Meanwhile, Cobalt International Energy Inc.'s 2.625% convertibles due 2019 continued to swoon, changing hands at 90.7 in early action Monday, according to Trace data. The bonds dropped last week to the low 90s from around par after the Houston-based oil and gas exploration company said it found more natural gas than expected in its latest Lontra well off of Angola.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.