Morning Commentary: Chesapeake Energy eyed in wake of tender offer news; AMD trades up

By Stephanie N. Rotondo

Seattle, Dec. 6 – Chesapeake Energy Corp. was dominating the convertible bond market early Tuesday as the Oklahoma City-based oil and gas producer announced a tender offer.

The cash tender offer includes 10 series of notes and two series of convertible issues – the 2.5% contingent convertible senior notes due 2037 and the 2.25% contingent convertible senior notes due 2038.

In response, the company’s 5.5% convertible notes due 2026 were seen unchanged to slightly better.

One market source placed the issue at 112.375, calling that steady day over day. Another source echoed that level, but deemed the debt up a point outright.

The underlying equity (NYSE: CHK) was up a penny at mid-morning at $7.49.

Meanwhile, Advanced Micro Devices Inc.’s 2.125% convertible notes due 2026 were on the rise, as the company announced it had inked a three-year partnership deal with Mentor Graphics Inc. to offer additional options for embedded developers.

The agreement is part of AMD’s plan to gain market share in the embedded space.

The convertibles rose as much as 5.5 points in early dealings, trading at 132.5, according to a market source.

The stock (Nasdaq: AMD) was up 42 cents, or 4.79%, at $9.10.

© 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.