Midday Commentary: New deals dominate action; YY slips below par; Emerald edges up; Gramercy adds

By Rebecca Melvin

New York, March 19 - There were five new deals putting in a debut in the convertibles market early Wednesday and one deal expected to price after the market close.

YY Inc.'s newly priced 2.25% convertibles due 2019 traded lower after the Guangzhou, China-based online music, entertainment and gaming company priced $400 million of the five-year senior notes at par at the cheap end of talked terms.

The new YY convertibles traded at 99 before the market open, a New York-based trader said. Meanwhile, YY shares were weak in the early going and last seen down $1.99, or 2.4%, at $80.01.

Emerald Oil Inc.'s newly priced 2% convertibles due 2019 traded up despite lagging underlying shares after the Denver-based oil and natural gas company priced an upsized $140 million of the five-year senior notes at the midpoint of talk.

The new Emerald convertibles were 101 bid, 102 offered in the early going with the underlying shares at $6.50.

Gramercy Property Trust Inc.'s newly priced 3.75% exchangeables due 2019 outperformed shares, which were up, after the New York-based commercial real estate investment company priced $100 million of the five-year notes at the midpoint of talk.

The new Gramercy Property convertibles were heard at 102.5 bid, 103.25 offered with the underlying shares up 1.3% at $5.235.

Navistar International Corp.'s newly priced 4.75% convertibles due 2019 were not heard in trade after the Lisle, Ill.-based truck and engine maker priced an upsized $370 million of the five-year senior notes at the cheap end of talked terms.

Vector Group Ltd.'s newly priced 1.75% convertibles due 2020 were also not yet heard in trade after the Miami-based tobacco holding company priced an upsized $225 million of the variable interest rate convertibles at the midpoint of talked terms.

Vector shares slumped however and were last seen down $1.25, or 5.75%, at $20.48 on Wednesday.

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