Morning Commentary: New NRG improves outright, dollar neutral; older NRG in line; CorEnergy upsizes

By Rebecca Melvin

New York, June 24 – NRG Yield Inc.’s new 3.25% convertibles improved upon their release for secondary market trading early Wednesday after the Princeton, N.J.-based electricity generator priced $250 million of the five-year senior notes at the midpoint of talked terms.

The NRG 3.25% convertibles due 2020 were trading in a 101.5 bid, 102 offered context with the stock higher, a syndicate source said.

On a swap basis, the bonds looked to have improved 0.375 point, the source said.

NRG’s existing 3.5% convertibles due 2019 were also active and traded in line on a hedged basis, quoted at 110.75 with the stock at about $23.00.

CorEnergy Infrastructure Trust Inc.’s new 7% convertibles were not heard in trade after the Kansas City, Mo.-based energy asset company priced an upsized $100 million of the five-year senior notes cheaper than talk.

Also noted in early action were the Acorda Therapeutics Inc. 1.75% convertibles due 2021, which were traded around 104, a New York-based sellsider said.

That was a big move on a dollar-neutral basis. On a heavy delta, the bonds were seen up more than a point, the sellsider said.

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