Morning Commentary: Convertibles primary not quite done for week; Realogy notes emerge

By Abigail W. Adams

Portland, Me., May 27 – The convertibles primary market surprised sources who were expecting a quiet end to the week and launched a deal prior to the market open.

Realogy Holdings Corp. plans to price $300 million of five-year exchangeable notes after the market close on Thursday with price talk for a coupon of 0.25% to 0.75% and an initial exchange premium of 35% to 40%, according to a market source.

The deal was in the market with assumptions of 350 basis points over Libor and a 40% vol.

Using those assumptions, the deal looked 3.25 points cheap at the midpoint of talk, a source said.

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