Tesla drops outright, narrowly mixed on hedge after disappointing earnings; Nvidia expands

By Rebecca Melvin

New York, Feb. 12 – Earnings were still packing a punch in the convertibles market on Thursday as late-season reports prompted sundry bonds to change hands even as many companies eyed the end of quiet periods and several, small-sized deals emerged.

Tesla Motors Inc.’s convertibles sank on an outright basis and were narrowly mixed on hedge after the Palo Alto, Calif.-based electric car maker posted disappointing earnings that sent its shares lower.

Nvidia Corp. was moving in the opposite direction with the 1% convertibles due 2018 up on an outright basis and expanding on hedge after the Santa Clara, Calif.-based graphics processor company posted an earnings beat.

In the new deal arena, Global Eagle Entertainment Inc.’s 2.75% convertibles due 2035 traded right around issue price, according to Trace data, after the Westlake, Calif.-based in-flight video and e-commerce company priced $75 million of the 20-year senior notes at the midpoint of coupon talk and beyond the rich end of premium talk.

Also pricing was a tiny $6 million issue of convertible preferred stock from Harvard Apparatus Regenerative Technology Inc. Shares of the Holliston, Mass.-based biotech company surged 69 cents, or 37%, to $2.58.

Meanwhile, Oclaro Inc. launched an offering of $55 million of five-year convertible senior notes early Thursday for pricing after the market close. The deal was talked at a 5.75% to 6.25% coupon and 25% to 30% initial conversion premium.

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