New SunEdison trades in line, then slips; SanDisk, Xilinx edge up on hedge after earnings

By Rebecca Melvin

New York, Jan. 22 – SunEdison Inc.’s new 2.375% convertibles traded in line with their underlying shares early Thursday but weakened by about 0.5 point dollar neutral late in the session as shares pulled higher in tandem with a broad-based market rally.

The St. Peters, Mo.-based solar technology company priced an upsized $400 million of the 7.25-year senior notes at the midpoint of talked terms. The deal’s inability to remain in step with higher shares was attributed to the high amount of SunEdison convertible paper currently outstanding after the company’s four deals priced in the last 13 months. Also, this one is the longest dated of the group.

Elsewhere SanDisk Corp.’s convertibles expanded on a hedged basis with shares lower after the Milpitas, Calif.-based data storage chip company warned that current-quarter and full-year revenue will be lower than expected amid a supply constraint, which also hurt the most recent quarter.

Xilinx Inc. also traded down on an outright basis but was better on a dollar-neutral basis by 0.25 point to 0.5 point after the San Jose, Calif.-based programmable chipmaker warned current quarter results will be lower than expected and reported mixed results for the just-completed fiscal third quarter.

The Xilinx 2.625% convertibles due 2017 fell 7.16 points to 138.27, according to Trace data.

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