DISH deal comes upsized; NextEra sells equity units at a discount; Cobalt bonds rebound

By Stephanie N. Rotondo

Seattle, Aug. 3 – Two new convertible issues were priced early Wednesday, giving investors something to focus on.

DISH Network Corp. brought $2.5 billion of 3.375% convertible notes due 2026.

The notes carry a 32.5% conversion premium, which was in line with 30% to 35% talk.

A trader said the deal – which came upsized from $2 billion– was “all the volume.”

Toward the close, the convertibles were pegged at 103.5 bid, 103.75 offered.

The stock, which had declined on Tuesday after the deal was first announced, was also heading for higher ground.

The stock moved up $2.13, or 4.33%, to $51.32.

Deutsche Bank Securities Inc. ran the books.

The notes are convertible under certain circumstances and during certain periods into class A common stock at an initial conversion rate of 15.3429 shares per each $1,000 of notes. That equates to an initial conversion price of $65.18, a 32.5% conversion premium over the $49.19 closing share price on Aug. 2.

NextEra Energy Inc. also came with a deal, pricing $1.5 billion of 6.123% mandatory convertible equity units.

The units were priced at $48.875 apiece but have a par value of $50.00. A trader said that upon pricing, the units moved back up to the par level.

Away from the new issues, a trader said Cobalt International Energy Inc.’s 2.625% convertible notes due 2019 were “still trading” but were looking to regain lost territory.

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