Morning Commentary: Century Aluminum notes on tap; Pioneer Natural Resources eyed

By Abigail W. Adams

Portland, Me., April 5 – It was a slow return from the long weekend with the convertibles primary market launching one small offering prior to the market open.

Century Aluminum Co. plans to price $75 million of seven-year convertible notes after the market close on Tuesday with price talk for an initial conversion premium of 20% to 25%, according to a market source.

Price talk for a coupon has yet to be determined.

The company is pricing a concurrent $250 million offering of seven-year senior secured notes.

Coupon price talk will be announced once talk for the concurrent high-yield bond offering is determined, a source said.

Meanwhile, the convertible secondary space saw decent trading volume early in Monday’s session.

There was $135 million on the tape about one hour after the opening bell.

However, there was a wide breadth to the trading activity with few names seeing more than $5 million in reported volume, according to a market source.

Pioneer Natural Resources Co.’s 0.25% convertible notes due 2025 were active early Monday.

The 0.25% convertible notes were down about 1 point outright with stock off more than 5%.

The notes were changing hands at 155.25 versus an equity price of $155.38, according to a market source.

Pioneer Natural Resources’ stock was $155.90, a decrease of 5.29%, shortly before 11 a.m. ET.

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