SolarCity convertibles drop after disappointing outlook; tech names flat; Euronet sinks

By Rebecca Melvin

New York, Feb. 10 – SolarCity Corp.’s convertibles dropped on both an outright and swap basis as the underlying equity fell 29% on Wednesday after the San Mateo, Calif.-based solar panel company guided for a bigger-than-expected loss for its current quarter.

SolarCity’s convertible bonds contracted several points in very active trade, a New York-based trader said.

Elsewhere, the convertibles of SanDisk Corp. and LinkedIn Corp. were trading about flat on a hedged basis, a trader said.

In biotechnology names, “everything saw a bit of a bounce, but there were low volumes across the board,” a second trader said.

On earnings, Euronet Worldwide Inc.’s 1.5% convertibles due 2044 dropped 10 points to 103.8, according to a market source, as shares of the Leawood, Kan.-based electronic payments provider fell $10.71, or 16%, to $57.93.

Euronet reported fourth-quarter net income of $33.5 million, or $0.61 per share, compared to net income of $30.1 million, or $0.55 per share, in the year-earlier period. Adjusted earnings of $0.92 per share were shy of estimates by a penny. But revenue was significantly below estimates, coming in at $470.6 million, or 2% higher than a year ago, compared to the consensus estimate of $502 million.

Looking ahead, Euronet said that first-quarter earnings per share was in line with expectations.

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