Midday Commentary: New McDermott mandatories trade better; short-dated LifePoint adds with shares

By Rebecca Melvin

New York, April 2 - McDermott International Inc.'s newly priced 6.25% tangible equity units traded higher in the early going Wednesday after the Houston-based offshore oil and gas construction company priced $250 million of the units at the rich end of talked terms.

McDermott's 6.25% mandatories were quoted 25.25 bid, 25.50 offered with the underlying shares weaker.

McDermott shares were last down a penny at $7.02.

The units have a $25.00 par. Their gain equated to a standard 100 par bond represented a 1- to 2-point gain.

LifePoint Hospitals Inc.'s 3.5% convertible, which mature in six weeks, gained a point or two to as high as 108.25 early Wednesday, moving in the same direction as shares of the Brentwood, Tenn.-based rural hospital owner and operator, which have risen in recent sessions.

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