Upsized SunPower ‘up marginally’ on swap; older SunPower weak; Ciena better, stock sinks

By Rebecca Melvin

New York, Dec. 10 – SunPower Corp.’s newly priced 4% convertibles traded down to a low print of 97.875 in the early going on Thursday but recovered some later in the session along with better stock pricing after the San Jose, Calif.-based solar company priced an upsized $400 million of the seven-year senior debentures at the cheap end of talked terms.

The SunPower deal was initially talked at $350 million in size.

On a swap basis, the bonds were flat to “up marginally,’ a New York-based trader said. The performance was in line with that of Harmonic Inc.’s 4% convertibles, which debuted in the market on Wednesday and traded around 100 to 100.5 after the $125 million of the five-year senior notes priced beyond the cheap end of talk.

The older Sunpower 0.75% convertibles traded early at 111 versus a share price of $23.04, which was down about 2 points on a dollar-neutral, or swap, basis. But they were seen to have contracted by only about a point against the closing share price of $22.39, which was down 65 cents, or 2.8%.

The SunPower 0.875% convertibles traded at 79, which was also down a bit, a New York-based trader said.

Ciena Corp.’s convertibles traded down on an outright basis, but opened up a little bit on swap. The moves came as the underlying shares fell 17%.

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