Midday Commentary: New NRG Yield trades around par; ADM's 0.875% paper active at par

By Rebecca Melvin

New York, Feb. 6 - NRG Yield Inc.'s newly priced 3.5% convertibles due 2019 traded around par in the early going Thursday with shares of the Princeton, N.J.-based electricity generator little changed after the $300 million offering of senior notes priced at the cheap end of talked terms.

NRG Yield shares moved around but were near the unchanged mark at late morning at $36.45.

A unique feature of the NRG bond is that it has dividend protection at the company's current dividend level but the level of protection slides upward by 15% annually for the life of the bond.

NRG is a dividend-growth company and this gives it the flexibility of continuing to pay out the dividend in the future without having to compensate the convert investors additionally.

Back in established issues, Archer-Daniels-Midland Co.'s 0.875% convertible remained a top volume name on the Trace tape at around par ahead of that issue's upcoming maturity on Feb. 15.

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