Morning Commentary: Greenbrier holds steady; market readies for FireEye earnings; Shutterfly dips

By Stephanie N. Rotondo

Seattle, Feb. 2 – Wednesday’s new convertible note issue from the Greenbrier Cos. Inc. was not as actively traded in early Thursday dealings, though the paper was holding its ground.

The $250 million of 2.875% convertible senior notes due 2024 were seen around 102.5 at mid-morning, which was in line with the previous day’s trades.

The underlying equity (NYSE: GBX), however, was coming off of its midweek highs, falling 60 cents, or 1.34%, to $44.20.

The deal came upsized from $175 million and with an initial conversion premium of 37.5%. Yield priced richer than the 3.25% to 3.75% talk. The conversion premium also came richer than the 30% to 35% talk.

Goldman Sachs & Co. and BofA Merrill Lynch ran the books.

Away from the new deal, FireEye Inc.’s convertible bonds were also steady as the market waited for the company’s earnings.

The results are expected to come after the market closes.

In early trading, the 1% convertible notes due 2035 were pegged at 92.5, while the 1.625% convertible notes due 2035 were in an 89.25 to 89.5 range.

But the company’s shares (Nasdaq: FEYE) were slipping ahead of the numbers, trading off 7 cents to $13.08.

In other earnings news, Shutterfly Inc.’s 0.25% convertible notes due 2018 were down about 3 points in the wake of an earnings miss and a layoff announcement.

The paper was trading around the 99 level at mid-morning, according to a market source. The stock (Nasdaq: SFLY) was down $7.81, or 15.09%, at $43.96.

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