Midday Commentary: New Cobalt gains in early trade; existing Cobalt slips; Tesla under pressure

By Rebecca Melvin

New York, May 8 - Cobalt International Energy Inc. priced an upsized $1.15 billion of 10- year convertible senior notes ahead of schedule early Thursday, and the new bonds were flying off the shelves in the secondary market after the deal met a positive reception during marketing, sources said.

The new Cobalt 3.125% convertibles were seen at 103.5 bid, 104.25 offered at late morning with the underlying shares of the Houston-based oil exploration and development company down 6%.

The new Cobalt convertible deal, which was launched after the market close on Wednesday, was expected to price after Thursday's market close. But it was oversubscribed, allowing it to price pre-open, a syndicate source said. He said no information was available on allocations.

The deal was initially talked at $1 billion in size. Pricing came at the cheap end of talk.

Cobalt's existing 2.625% convertibles due 2019 looked to have slipped a couple of points to the vicinity of 93 in active trade.

Elsewhere, Tesla Motors Inc.'s 1.25% convertibles were down in active trade. They dropped to as low as 86 and change in the early going and bounced back to about 88 and change, but that was still off from 89 to 90 previously, according to Trace data.

Tesla shares were down $13.62, or 4 7%, to $187.83 at late morning after details in the electric car maker's quarterly-earnings report disappointed investors.

© 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.