Convertibles quiet; Intel, Tesla in line; Acorda, Restoration Hardware, EZCorp to price

By Rebecca Melvin

New York, June 16 – U.S. convertibles were mostly quiet on Monday, with market players unmoved by merger news affecting a couple of convertibles issuers and as stocks wavered between narrow gains and losses.

But after the market close, three new convertibles deals were launched in the primary market.

During the session, Intel Corp.’s 2.95% convertibles were active, and that bond was moving in line with the underlying shares on a dollar-neutral basis from Friday, a New York-based trader said.

He quoted the Intel 2.95% convertibles at 122.125 bid, 122.625 offered versus an underlying share price of $29.96. Shares of the Santa Clara, Calif.-based chip giant were up fractionally.

Tesla Motors Inc.’s 1.25% convertibles due 2021 were also up in line with the underlying shares at around 92 in the early going as shares of the electric car maker were up $5.90, or 2.8%, to $212.40. Tesla shares ended up $18.19, or 8.8%, to $224.61.

Equities ended in the black, after alternating between gains and losses.

After the market close, Acorda Therapeutics Inc. and Restoration Hardware Holdings Inc. launched convertibles offerings for $300 million each. The Acorda deal is for seven-year senior notes, non-callable for three years, that were seen pricing after the market close on Tuesday. Restoration Hardware is pricing five year non-callable notes after the market close on Wednesday.

In addition, EZCorp Inc. launched $175 million of five-year convertibles that will be priced under Rule 144A, according to a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.