Convertibles soft; Exelon, J2 Global, TCP, Penn Virginia to price; Endeavour gains

By Rebecca Melvin

New York, June 10 – Convertibles were generally for sale on Tuesday but with few bidders, so pricing was soft as market players continued to gear up for potentially more new issuance this week on the back of a strong primary market last week.

Four deals launched after the market close for $1.65 million in base deals.

Exelon Corp. launched $1 billion of equity units, with pricing expected after the market close on Wednesday.

Also pricing after the market close on Wednesday are J2 Global Inc., which plans to sell $300 million of 15-year convertible senior notes, and TCP Capital Corp., which plans to sell $100 million of five-year convertible senior notes.

And Penn Virginia Corp. is pricing $250 million of convertible perpetual preferred shares ahead of the market open on Wednesday.

Generally, the tone was a little softer with the new issuance, a second trader said.

Endeavour International Corp. convertibles gained along with a big bounce in the underlying shares after the company raised its second-quarter production guidance.

The new deals join Verint Systems Inc. on the calendar. The company is pricing $300 million of seven-year convertibles late Thursday.

Equities ended narrowly mixed, with the Dow Jones industrial average edging up 2.82 points to 16,945.92, which represented its fourth straight record close.

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