Cemex convertibles gain ground with stock; Whiting Petroleum notes give up recent gains

By Stephanie N. Rotondo

Seattle, March 21 – Cemex SAB de CV’s 3.75% convertible notes due 2018 were “trading a lot” on Monday, according to a trader.

He said the notes have “moved up nicely with the stock,” placing the issue at 103. That was up from opening levels in a 101.75 to 102 context, he said.

As for the equity, that was up 23 cents, or 3.33%, to $7.14.

“So that’s a big move,” the trader said.

Last week, the Mexico-based cement and aggregate producer held an investor day in which management said the plan was to reduce debt by $2 billion by 2017. For the previous two years, the company had reduced its debt burden by just over $2 billion, including a recent refinancing of high-yield notes.

But away from Cemex and Whiting Petroleum Corp., liquidity was thin. A trader blamed the muted trading on the fact that it was a shortened holiday week.

“And it’s only going to go down,” he said of trading volume.

Whiting Petroleum’s convertible debt gave up some of the gains incurred on Friday when the company announced a privately negotiated debt swap.

One trader saw the 1.25% convertible notes due 2020 at 61.75 bid, 62.25 offered.

That compared to levels closer to 63 on Friday.

Another source placed the issue around 81.875, a loss of about a point.

© 2015 Prospect News.
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