Morning Commentary: Pricing of Chart Industries deal on tap looks ‘OK’

By Rebecca Melvin

New York, Oct. 31 – U.S. convertibles players were sizing up early Tuesday a new $225 million offering by Chart Industries Inc. expected to price after the market close, according to market sources.

The new deal was seen “OK” in terms of pricing at the midpoint of talk, a New York-based trader said.

The deal was being talked at a 1% to 1.5% yield and a 30% to 35% initial conversion premium.

But even though pricing was not seen as particularly appealing, it was expected that the deal would trade higher after the break on Wednesday given the lack of new paper in the market recently, the trader said.

Chart’s Rule 144A notes, a portion of which will be used to buy back Chart’s existing convertible issue, were being sold via joint bookrunners Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC and co-manager Raymond James.

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