Tesla 1.5% convertible edges up; Cemex lower outright, richens on swap; IGI Labs steady

By Rebecca Melvin

New York, Feb. 11 – Tesla Motors Inc.’s 1.5% convertibles were lower outright but gained another 0.25 point on a dollar-neutral, or hedged, basis on Wednesday as shares of the Palo Alto, Calif.-based electric car maker slipped ahead of its quarterly results reported after the market close.

On Tuesday, the Teslas had traded actively and were seen higher by about 0.25 point on a swap basis.

Tesla’s results on Wednesday missed estimates, and shares extended losses in after-hours action.

The Tesla Motors 1.5% convertible ended the session at about 178.7, which was down 2 points on an outright basis, according to Trace data.

Tesla’s two other convertible bond issues were mostly quiet ahead of the results, which showed a fourth-quarter loss of $16 million, or 13 cents per share, compared to 33 cents per share in the year-earlier period.

Revenue for the quarter was $1.1 billion, compared to $761 million in the year-earlier quarter.

Analysts had expected Tesla to report earnings of about 30 cents per share on revenue of about $1.21 billion.

Also improving on hedge amid lower outright pricing was Cemex SAB de CV. The catalyst was the Monterrey, Mexico-based cement producer’s latest earnings which were deemed credit positive, a New York-based trader said.

IGI Laboratories Inc.’s 3.75% convertibles have been active in recent sessions, and on a dollar-neutral basis they were “pretty steady” amid some long-only sellers, a second New York-based trader said.

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