Cemex bonds mixed on exchange deal; Omnicare slips on swap on buyout news; Vipshop adds

By Rebecca Melvin

New York, May 21 – Convertibles traders were busy with Cemex SAB de CV 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 plus shares.

The existing Cemex bonds traded better on a swap basis, while the new paper struggled, a New York-based analyst said.

Also trading actively in the convertibles space 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 the assumption of $2.3 billion of debt. Two Omnicare bonds came in a little on a hedged basis, while shares rose, the analyst said.

Vipshop Holdings Ltd.’s convertibles dropped on an outright basis along with lower shares of the Guangzhou, China-based online discount retailer, but on a swap basis, the bonds expanded slightly, a New York-based trader said.

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

The Trina 3.5% convertibles and 4% convertibles were previously seen around par.

The overall convertibles session was described as lackluster, with trading action starting to wind down ahead of the long holiday weekend for Memorial Day, a trader said.

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