Midday Commentary: Jarden's planned deal looks slightly rich; existing Jarden lower; Apollo on tap

By Rebecca Melvin

New York, March 11 - Jarden Corp.'s new $600 million offering of 20-year convertible bonds was looking slightly rich for investors at the midpoint of talk, according to a couple of market players early Tuesday.

The Jarden deal, which launched early Tuesday and was expected to price after the market close, was seen worth 99.9 at the midpoint of talk, using a credit spread of 300 basis points over Libor and a 25% vol., according to a Connecticut-based trader.

A second source said the convertible deal modeled rich using a tighter spread and 25% vol.

Price talk was for a coupon of 1% to 1.25% and an initial conversion premium of 20% to 25%.

Jarden, a Rye, N.Y.-based consumer products company, has two existing convertible bond issues. Jarden's existing 1.875% convertibles due 2018, which is the older of the two existing convertibles, traded at 141.71 early Tuesday, according to Trace data. That was down nearly 3 points on an outright basis from where the paper was seen going out on Monday at 144.5, according to a syndicate source.

The existing Jarden 1.5% convertibles due 2019 went out Monday at 124.5, the syndicate source said.

Also set to price after the market close on Tuesday was Apollo Commercial Real Estate Finance Inc.'s $100 million of five-year convertible senior notes, which were talked at a 5.75% to 6.25% coupon and a 10% to 15% initial conversion premium.

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