Convertibles slip; Steel Dynamics active ahead of maturity; Verint Systems paper on tap

By Rebecca Melvin

New York, June 9 – U.S. convertibles were modestly lower on Monday, with many names coming for sale as market players eyed the potential of new deals coming after the market close or in the coming days, a New York-based trader said.

“We’re hearing some deals pricing, and people are getting ready for new paper,” the trader said. There are also potential deals coming out of Europe, he said.

“It seemed like most things were off by about 0.25 point across the board,” the trader said.

After the market close Melville, N.Y.-based security and surveillance company Verint Systems Inc. launched an offering of $300 million of seven-year convertibles and also a stock deal that was seen pricing late Thursday.

Back in the secondary market, trading was thin, making it difficult to discern particular themes about what was selling and by how much, a second New York-based trader said.

Starwood Property Trust Inc.’s 4.55% convertibles traded down about a point on an outright basis with the shares of the Greenwich, Conn.-based mortgage loan investor lower by 16 cents, or 0.7%. The notes were seen lower by about 0.25 point on a hedged basis.

Steel Dynamics Inc.’s 5.125% convertibles, which mature June 15, were trading actively at about parity, a New York-based trader said. Shares of the Fort Wayne, Ind.-based steel company were down about 1.6%.

Trace data recorded the bonds trading late Monday at 101.685, which was down 1.3 points.

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