New Atlas Air slips below par with lower shares, unchanged on swap; FireEye trades in line

By Rebecca Melvin

New York, May 29 – Atlas Air Worldwide Holdings Inc.’s new 2.25% convertibles slipped below par on their debut in the secondary market on Friday after the Purchase, N.Y.-based outsourced aircraft and aviation services company priced $200 million of the seven-year notes at the rich end of talked terms, market sources said.

The new Atlas Air convertibles were 99.5 bid, 100 offered with the stock at around $55.40, a Connecticut-based trader said. They were essentially unchanged on a swap basis.

The new bond accounted for the majority of Friday’s convertibles trading volume, a New York-based trader said.

FireEye Inc.’s two $460 million deals, which debuted in the market on Thursday, were trading actively and “better to buy,” as market players topped up on Thursday’s allocations. The volume wasn’t impressive, however, and those bonds were little changed, or in line, versus the underlying shares, sources said.

The FireEye bonds include a combined $120 million resulting from the deals’ fully exercised greenshoes.

Tesla Motors Inc. was also a name in trade on Friday with the underlying shares of the Palo Alto, Calif.-based electric car maker a bit weaker.

Otherwise the session was quiet heading into the weekend after the holiday-shortened week.

In the broader markets, equities were down. That can often have a dampening effect on convertibles, but increased volatility should also increase demand for convertibles, a New York-based trader noted.

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