| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2017 > News item |
Morning Commentary: Restoration Hardware firms post-earnings; energy convertibles gain with oil
By Stephanie N. Rotondo
Seattle, March 29 – A convertible bond trader said energy-linked issues, Restoration Hardware Holdings Inc. and Tesla Inc. were notable in early Wednesday trading.
“That’s covering about 80% of what is going on today,” he said.
In the energy space, “you pick it, it’s up,” the trader commented, as oil prices improved over 1%, edging closer to $50. Crude prices were gaining due in part to disruptions in Libya – armed protestors were blocking fields, dampening production – and in part to chatter that OPEC will extend its output cuts.
As a result, names like Chesapeake Energy Corp. were pushing upward.
Chesapeake’s 5.5% convertible notes due 2026 were seen trading at or above par at mid-morning, which compared to previous trades with a 97 handle. The company’s shares (NYSE: CHK) were also better, adding over 7%.
Restoration’s Hardware’s 0% convertible notes due 2019 and 2020 were meantime better following the company’s earnings beat.
The 2019 maturity was in an 89.25 to 89.5 context at mid-morning. Last week, the paper was trading around 87.25.
The 2020 convertibles were also on the rise, trading in a range of 83.5 to 84, versus 79.5 previously.
The underlying equity (NYSE: RH) was up over 11% at mid-morning.
As for Tesla, the Palo Alto, Calif.-based car maker’s convertibles were “taking a breather,” a trader said, following the 3- to 4-point gain seen on Tuesday after it was reported that Chinese technology company Tencent had taken a 5% stake in the company.
The trader said the convertibles were about unchanged in midweek trading. The equity (Nasdaq: TSLA), however, continued to tick higher, adding 42 cents to $277.87.
© 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.