Priceline 1% convertibles add with shares; Energy XXI files for bankruptcy; SunEdison up

By Rebecca Melvin

New York, April 14 – U.S. convertibles were firm in mostly light trading on Thursday as stocks paused following their rally on Tuesday and Wednesday. Priceline Group Inc.’s 1% convertible due 2018 was the single most active issue, with the bonds up about a point to 147 with shares about 1% higher.

The second most active issue was Energy XXI Ltd.’s 3% convertible due 2018, with $12.5 million of bonds having traded by late morning, compared to Priceline’s $45.5 million, according to Trace data.

Energy XXI, the Bermuda-based oil and natural gas company, confirmed that it has filed for Chapter 11 bankruptcy protection from creditors and is implementing a financial restructuring plan.

The market was expecting the filing, and the Energy XXI convertibles were trading little changed at 0.625 to 0.75, according to a New York-based trader. Energy XXI shares were trading under 20 cents per share.

Elsewhere, Jazz Pharmaceuticals Inc., which was active on Wednesday, continued to trade well at steady levels, and Hornbeck Offshore Services Inc.’s convertibles were little changed in active trade, changing hands at around 60, which was the level to which they rose in the previous few sessions.

SunEdison Inc.’s convertibles improved along with a rally in the common shares of the Maryland Heights, Mo.-based solar energy company after news that the company’s internal investigation didn’t turn up any fraud but only a lack of internal accounting and cash management controls.

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