Spirit Realty gains in active trade as S&P, Fitch assign investment-grade ratings; NXP up

By Rebecca Melvin

New York, April 26 – Convertibles players continued to respond to issuers’ quarterly earnings news and other news on Tuesday, but the biggest market focus by far was again Spirit Realty Capital Inc. Spirit’s two convertibles were higher in heavy volume as investment-grade ratings were assigned to the convertibles of the Scottsdale, Ariz.-based real estate investment trust.

Standard & Poor’s said it assigned a BBB- issue-level rating to the two Spirit convertibles tranches, which mature in 2019 and 2021. The convertibles rating followed on S&P’s BBB- corporate credit rating and stable outlook assigned on Friday.

In addition, Fitch Ratings assigned Spirit Realty an issuer default rating of BBB- with a stable outlook.

Elsewhere, the convertibles of NXP Semiconductors NV traded up after the Netherlands-based semiconductor company posted earnings that beat estimates and revenue that was in line with guidance. Looking ahead, NXP guided current quarter earnings and revenue in line with expectations.

NXP’s 1% convertibles due 2019 jumped more than 2 points to about 115 with the underlying shares closing up $3.35, or 4%, to $86.69.

Fellow chip maker Micron Technology Inc. was also in trade. But the Micron 3% convertibles due 2043 rose just 0.6 point to 67.66 amid a 9% surge in the underlying shares to $11.51.

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