Liberty Interactive/Charter exchangeable looks cheap; Vipshop retraces outright gains

By Rebecca Melvin

New York, Aug. 17 – Liberty Interactive LLC’s planned $500 million of debentures exchangeable for Charter Communications Inc. looked cheap to investors on Wednesday ahead of final terms that were expected to be fixed after the market close, a market source said.

The Liberty/Charter debentures, talked with a 1.75% to 2.25% coupon and a 27.5% to 32.5% exchange premium, were seen in the gray market at 102.5, the source said.

The Rule 144A deal has a $75 million greenshoe and was being sold via bookrunners BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.

Meanwhile, in the secondary market, U.S. convertibles essentially followed stocks during the session, which were fractionally lower in the early going for a second day after the three major U.S indices notched record highs on Monday. But after the Federal Reserve released the minutes from its July meeting Wednesday afternoon, stocks ticked higher.

Meanwhile, Vipshop Holdings Ltd.’s 1.5% convertibles were the most actively traded issue, according to Trace data early Wednesday. But the paper was trading lower in tandem with the underlying American Depositary Shares of the China internet company. Nevertheless, the bonds were essentially unchanged on a dollar-neutral, or swap, basis, compared to Tuesday when the ADS spiked higher following better-than-expected quarterly earnings.

The Vipshop bonds changed hands at 107.9 compared to 108.5 to 109.5 on Tuesday. Vipshop ADS were $16.04.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.