TCP Capital trades a bit higher on debut; two deals launch in Europe; Tesla bonds slip

By Rebecca Melvin

New York, Aug. 31 – There was a new deal in the U.S. convertibles market and two deals that launched in the European convertibles market on Wednesday – one of those also priced later in the day – marking the last day of August and another day closer to a market reset hoped for following the summer vacation slowdown.

TCP Capital Corp.’s new 4.625% convertibles traded up to as high as about 102 on Wednesday after the Santa Monica, Calif.-based specialty finance company priced an upsized $125 million of the 5.5-year senior notes in an overnight deal at the midpoint of coupon talk, a syndicate source said.

“It was a successful deal, and it traded up,” the syndicate source said.

In Europe, Inmarsat plc launched an offering of about $550 million of seven-year convertible bonds that were talked to yield 3.625% to 4.125% with an initial conversion premium of 30% to 35%, and Remy Cointreau SA launched and priced €275 million of 10-year bonds convertible into new or existing shares, or Oceanes, to yield 0.125% with an initial conversion premium of 40%. That represented the midpoint of price talk.

Back in secondary market action, Tesla Motors Inc.’s two longer-dated convertibles traded a bit weaker after reports that Tesla is repaying $422 million for its shorter-dated 1.5% convertibles due 2018, leaving about $224 million of that issue left outstanding. Tesla expects to repurchase the bonds in the third quarter.

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