Morning Commentary: Cemex active after exchange; Omnicare busy on buyout news; Trina shares pop

By Rebecca Melvin

New York, May 21 – Convertibles traders were busy with Cemex SAB de CV early Thursday after the Monterrey, Mexico-based cement producer agreed to exchange about $626 million of its Cemex 3.25% convertibles due 2016 for new 3.72% convertibles due 2020.

The Cemex 3.25% convertibles were down about a point at about 118.5 to 119, according to Trace data.

The company said it is offering to issue $321 million of new 3.72% convertibles at terms that are substantially the same as the existing 3.75% convertibles issued in March. Cemex is also offering about 42 million American Depositary Shares.

Also trading actively was Omnicare Inc. after news that CVS Health Corp. is buying the Cincinnati-based pharmacy services provider for $98.00 per share in cash plus about $2.3 billion of debt.

Omnicare’s 3.5% convertibles due 2044 were trading actively and were 144.5 bid, 144.75 offered versus an underlying share price of $96.45, a New York-based trader said.

The Omnicare 3.25% convertible due 2035 were last at 124.5, which was down about a point on the day, according to Trace data.

Shares of the Cincinnati-based pharmacy services provider were up $1.73 at $96.29.

Trina Solar Ltd.’s convertibles were not heard in trade despite an 11% pop in the underlying shares after the Chinese solar company reported better-than-expected earnings.

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