Midday Commentary: New RPM International adds early on debut; RAIT Financial launches deal

By Rebecca Melvin

New York, Dec. 4 - RPM International Inc.'s new 2.25% convertible senior notes traded up 3 points or so on an outright basis in fairly active trade early Wednesday after the Medina, Ohio-based maker of specialty chemical products priced $200 million of the seven-year notes at the rich end and beyond the rich end of talk.

The RPM convertibles were seen last at 103.5, and they seemed to be trading mostly on an outright basis, according to a New York-based trader.

A second source said the level was 103.375 bid, 103.875 offered.

RPM shares were edging higher, trading up about 89 cents, or 2.3%, at $39.53 at late morning.

Meanwhile, RAIT Financial Trust launched an offering of $125 million of 20-year convertible senior notes that were seen pricing after the close.

The launch lifted the number of deals expected to price at the end of Wednesday to three. The other two deals are Endologix Inc.'s $75 million of five-year convertible notes and GT Advanced Technologies Inc.'s $125 million of seven-year convertible notes.

Back in established issues, Cobalt International Energy Inc.'s convertibles continued to bounce around but looked to be more solid, changing hands last at 92.169, according to Trace data. The bonds slid from near par on Monday along with a tumble in the underlying shares of the Houston-based oil and gas exploration company on news that a well in Angola was yielding more low-margin natural gas than expected.

Cobalt shares on Wednesday were also ticking higher after a 5.6% drop Tuesday and a 16.6% tumble on Monday.

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