New Macquarie higher on strong demand; UAL slips dollar neutral; market moves sideways

By Rebecca Melvin

New York, July 10 – Macquarie Infrastructure Co. LLC’s newly priced 2.875% convertibles gained in active trade on Thursday after the New York-based infrastructure services company priced an upsized $305 million of the five-year senior notes at the tight end of revised talk.

Demand, particularly from outright players, outstripped supply, driving up the price, a syndicate source said.

The Macquarie bonds were last seen at 105 against the closing share price of $66.73. The gain on a dollar-neutral basis was roughly 5 points even though shares were off by 1%. The move was calculated to account for the fact that it is a low-delta stock.

The lion’s share of the day’s trading action was in Macquarie. But elsewhere, the airlines were pulled into focus after positive guidance from several airlines for the second quarter lifted stocks.

United Continental Holdings Inc.’s convertibles traded up on an outright basis, but contracted slightly on a dollar-neutral, or hedged, basis by 0.25 point to 0.5 point, a New York-based trader said.

A second trader said that the UAL convertibles were not going to move very much given that they are deep in the money, and the UAL 4.5% convertible notes have less than a year until maturity. UAL’s 6% convertible preferreds were also trading.

Meanwhile, RPM International Inc.’s 2.25% convertibles due 2020 were seen at 119.75 bid, 120.25 offered at the end of the day versus a closing share price of $44.93.

© 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.