Midday Commentary: New Energy XXI trades par to 100.5 with shares higher; Cardtronics on tap

By Rebecca Melvin

New York, Nov. 19 - Energy XXI (Bermuda) Ltd.'s newly priced 3% convertibles due 2018 were flat to slightly higher on an outright basis, as well as on a dollar-neutral, or hedged, basis in early action Tuesday, according to a syndicate source.

The new Energy XXI convertibles were 100 bid, 101 offered on an outright basis, and they were quoted 100 bid to 100.5 offered on a hedged basis, the syndicate source said.

The bonds were also heard at 100 bid, 100.375 offered by a New York-based trader. Shares were exhibiting strength, however, trading up about $1.00, or 4% at $28.49.

The Hamilton, Bermuda-based oil and gas company's $350 million deal was upsized from $300 million and pricing came at the midpoint of coupon talk and the cheap end of premium talk. The premium for the new deal was a relatively high 47.5%.

Also in the primary market, Cardtronics Inc.'s $250 million offering of seven-year convertible senior notes was in focus, with pricing expected after the market close.

Cardtronics was talked at a 0.75% to 1.25% coupon and 22.5% to 27.5% initial conversion premium.

Back in established issues, Tesla Motors Inc. was mentioned as one of the day's traders in convertibles, with the shares of the electric carmaker up about $5.00, or 4%.

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