Morning Commentary: Macquarie Infrastructure convertibles ‘get better and better’

By Stephanie N. Rotondo

Phoenix, July 24 – The convertible debt space was getting off to a slow start Thursday, according to a trader.

“It’s converts, it’s summer, nothing is going on,” he said.

At mid-morning, the trader said about $70 million worth of bonds had traded in the convertibles market, at least $10 million of which was Yahoo! Inc.

One other name getting some play was Macquarie Infrastructure Co. LLC. On July 10, the New York-based company sold $305 million of 2.875% convertible senior notes due 2019 at a 27.5% initial conversion premium.

“They came out two weeks ago and it’s done nothing but get better and better,” a trader said.

The trader pegged the notes at 109.375 versus a stock price of $72.38 on a 23% delta.

Barclays, J.P. Morgan Securities LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC ran the books on the deal.

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