| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2017 > News item |
Morning Commentary: Encore Capital, Viavi plan new issues; Tesla stock downgraded, bonds lower
By Stephanie N. Rotondo
Seattle, Feb. 27 – The convertible bond market kicked off the new week by adding a couple of deals to the calendar.
Encore Capital Group Inc. announced plans to sell $125 million of convertible senior notes due 2022.
Price talk is for a yield of 3.25% to 3.75% and an initial conversion premium of 30% to 35%.
BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC are running the books.
Ahead of pricing – expected after the session’s close – the company’s stock (Nasdaq: ECPG) was off a nickel at $35.10.
Viavi Solutions Inc. also said it was bringing a deal, a $400 million offering of convertible senior notes due 2024.
Price talk on that issue is for a yield of 0.5% to 1% with an initial conversion premium of 32.5% to 37.5%.
J.P. Morgan Securities LLC, Morgan Stanley and Credit Suisse are the bookrunners.
Viavi’s shares (Nasdaq: VIAV) were steady at $10.44 in the wake of the news, though that was down from $10.48 at the open.
Both deals are Rule 144A offerings.
As for the secondary market, a trader said dealings were limited, even in names like Tesla Inc., which saw its stock get hit after Goldman Sachs lowered the equity rating to “sell” from “neutral.”
“Goldman had some unkind things to say about Tesla,” the trader said.
Specifically, Goldman cited concerns about the company’s roll-out of its Model 3 sedan, as well as its SolarCity acquisition and its “unproved” benefit to the company.
The 1.625% convertible notes due 2019 – linked to SolarCity – were “off a little bit over a point” at 89.25, according to the trader.
The underlying stock (Nasdaq: TSLA) was down over 4% at mid-morning.
© 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.