New SunEdison convertible preferreds jump; older tranches mixed; Whiting Petroleum slips

By Rebecca Melvin

New York, Aug. 18 – SunEdison Inc.’s newly priced 6.75% perpetual convertible preferreds traded up as much as 5 points on a hedged basis on Tuesday after the St. Peters, Mo.-based solar technology company priced an upsized $650 million of the stock at the rich end of talked terms, market sources said.

The new SunEdison 6.75% preferred was quoted 104.375 bid, 105.125 offered versus an underlying share price of $14.68. That level was up more than 4 points on a swap basis, a Connecticut-based trader said.

The newest convertible joined three other SunEdison tranches that priced earlier this year, and then a few older issues as well.

But despite the large amount of SunEdison paper in the convertible space, this new issue did extremely well and the older paper was mixed in trade, with the most recent new issues, or the E and F tranches that priced in May, also improving on a swap basis.

Away from the SunEdison new deal and its older issues, the convertibles market was fairly quiet.

Whiting Petroleum Corp. was lower by about 0.375 point on a dollar-neutral, or swap, basis and was quoted at 85 bid to 85.25 versus an underlying share price of $19.00.

The Whiting “bonds are in about 0.375 point. They seem to be catching up with weakness in energy credits,” a New York-based trader said.

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