New NRG gains outright, dollar neutral, older NRG in line; CorEnergy edges up; Impax launches

By Rebecca Melvin

New York, June 24 – NRG Yield Inc.’s new 3.25% convertibles improved on their debut in the secondary market on 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 ended the session at 103 versus an underlying share price of $23.53, a syndicate source said.

On a swap basis, the bonds improved 0.25 point on the day, which came in from a 0.375 point improvement earlier in the session, the source said.

The new NRG issue traded actively and was a primary focus of the session.

NRG’s older 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 earlier in the session.

CorEnergy Infrastructure Trust Inc.’s new 7% convertibles were also a little higher on an outright and swap basis after the Kansas City, Mo.-based energy asset company priced an upsized $100 million of the five-year senior notes at terms that were cheaper than talk

The new CorEnergy convertibles were quoted at 100.75 bid, and also at 100.5 bid, 102.75 offered with the underlying shares at $6.15.

On a swap basis, they were slightly better, a syndicate source said.

After the market close, Impax Laboratories Inc. launched an overnight deal of $500 million of seven-year convertible notes that were talked to yield 1.5% to 2% with a 32.5% to 37.5% initial conversion premium.

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