Penn Virginia gains; planned Exelon adds in gray market; secondary valuations ‘come in’

By Rebecca Melvin

New York, June 11 – Penn Virginia Corp.’s newly priced 6% convertible preferred shares traded up on Wednesday after the Radnor, Pa.-based oil and gas drilling company priced its upsized $275 million of the shares at the talked priced points.

The new Penn Virginia preferreds, which were initially talked at $250 million in size, were quoted at 103 bid, 104 offered with the underlying shares down 8 cents, or 0.6% to $14.03 at late morning, a market source said. Later the shares reversed course and ended up nearly 1%.

The old Penn Virginia 6% convertible perpetual preferreds, which priced in October 2012, were extremely quiet, with no current quote available, the source said.

Exelon Corp.’s planned $1 billion offering of equity units traded higher in the gray market on Wednesday ahead of final terms being set after the market close. The deal was seen at 51.25 bid, 51.5 offered at the close compared to its 50 par.

Also pricing after the market close was j2 Global Inc.’s planned $300 million of 15-year convertible senior notes, according to a Connecticut-based source.

TCP Capital Corp.’s planned $100 million of five-year senior notes was also on tap after the market close. That deal was said to have limited to non-existent stock borrow. In addition it was said to have limited distribution to “over-the-wall investors.”

Secondary market valuations sold off again Wednesday on the back of strong new issuance, a New York-based trader said.

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