Planned Trina deal in focus; Ford comes in 0.25 point on hedge; Red Hat launches deal

By Rebecca Melvin

New York, Sept. 30 – Trina Solar Ltd.’s planned $100 million of five-year convertibles were in focus early Tuesday as traders valued the deal ahead of terms set to be fixed after the market close.

The Trina deal was seen about fair value using a hefty credit spread of 1,000 basis points over Libor and a 45% vol., a New York-based trader said.

Hedged players were expected to be limited by tight stock borrow even though the deal was coming with a stock borrow facility.

Shares of the Changzhou, China-based maker of solar-power products dropped 81 cents, or 6%, to $12.39 in the early going.

Intel Corp.’s 3.25% convertibles due 2039 were atop the Trace volume charts amid no particular news for the chip giant. Intel shares were little changed.

The Intel 3.25% convertibles, a large $2 billion deal priced in 2009, traded down nearly 2 points at 166.5.

Ford Motor Co.’s convertibles were pulled into trade at lower levels, with shares of the Dearborn, Mich.-based automaker down after lowering full-year guidance on Monday. The Ford 4.25% convertibles due 2016 came in about 0.25 point, a New York-based trader said.

After the market close, Red Hat Inc. launched an offering of $700 million of five-year convertible senior notes that the Raleigh, N.C.-based open-source software provider planned to price after the market close Wednesday.

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