Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for SunEdison, Inc. > News item |
Convertibles resilient despite another stock slide; old SunEdison notes, shares tank
By Rebecca Melvin
New York, Jan. 7 – Convertibles remained resilient on Thursday despite a continuing slide in equities – leaving the S&P 500 stock index down 4.9% over the first four trading days of the year – as investors fear the implications of slowing China growth and actions that government is taking to limit damage to its financial markets, including currency devaluations and suspending stock market trading.
U.S. stocks ended near their lows for the day, in contrast to late rallies that pared swoons on Monday and Wednesday.
The convertibles market is going “surprisingly well. Things are definitely holding up relative to the equity market. Credit is very stable,” a New York-based trader said.
But SunEdison Inc. was hammered after the solar technology company said that it is raising $725 million of secured terms loans and reducing $740 million of convertible debt via an exchange agreement involving a new convertible note and stock.
SunEdison’s 5% convertibles due 2018, which is the new $225 million convertible the company has agreed to issue in exchange for parts of its older convertible issues, saw an early market at 90 bid, 92 offered but was not known to have traded.
The existing SunEdison convertibles were pretty quiet initially as market players were “digesting the news,” a market source said. But prices dropped sharply on trades that were made.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.