Chesapeake Energy gaps down; AMAG continues trajectory lower; Vodafone prices £600 million

By Rebecca Melvin

New York, Nov. 19 – Convertibles players turned sellers in another mainstay on Thursday: Chesapeake Energy Corp.’s convertibles slumped 5 to 9 points amid no particular news regarding the oil and natural gas company, market players said.

“There’s a lot of pain being felt in convertibles,” a New York-based trader said, referencing a wave of selling that swept over SunEdison Inc. and now selling in Chesapeake.

SunEdison melted down last week into this week. The SunEdison 3.375% convertibles due 2025 fell to about 26.50 on Thursday from 30ish as shares slid another 12% to $2.86. Last week this issue was in the 40s.

AMAG Pharmaceuticals Inc.’s convertibles were also for sale on Thursday as shares of the Waltham, Mass.-based specialty pharmaceutical company fell in response to a regulatory setback for its Makena drug.

The Food and Drug Administration asked for further information about AMAG’s application seeking approval for a single-dose vial of Makena, which is used to reduce the risk of preterm birth.

The U.S. primary market was quiet on Thursday, but internationally, London’s Vodafone Group plc launched and priced £600 million of five-year 0% equity-linked bonds with a 30% initial conversion premium. The premium is based on a volume weighted average price of the company’s ordinary shares for the next 10 trading sessions.

The 0% coupon compared 0.4% to 1.2% talk for the coupon.

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