Morning Commentary: Newmont Mining busy but steady ahead of maturity; Microchip edges higher

By Stephanie N. Rotondo

Seattle, June 6 – A convertible bond trader said Newmont Mining Corp.’s 1.625% convertible senior notes coming due in July were busy ahead of the maturity.

“I guess the people who don’t want to hold until maturity are selling,” he said.

He saw the issue trading around 100.6, which was about unchanged.

As for the company’s stock (NYSE: NEM), it was up $1.10, or 3.26%, at $34.89.

The convertible bonds mature on July 15.

Meanwhile, Microchip Technology Inc.’s 1.625% convertible notes due 2027 were up about a point in early trading after the company revised its first-quarter guidance.

A trader pegged the paper at 113, up from 112 previously.

The underlying equity (Nasdaq: MCHP) was up only slightly at mid-morning.

For the first quarter, Microchip Technology is forecasting earnings per share of 62 cents to 64 cents, which compared to previous guidance of 59 cents to 64 cents.

Adjusted EPS is expected to be $1.22 a share to $1.26 a share. Initial guidance was $1.17 a share to $1.27 a share.

Additionally, consolidated net sales is projected to rise 4.5% to 6%, with a midpoint of 5.25%.

The company has previously forecast a gain of 2% to 7%, with a midpoint of 4.5%.

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