Morning Commentary: New LGI Homes adds 2 points; SunEdison jumps outright on wind deal

By Rebecca Melvin

New York, Nov. 18 – LGI Homes Inc.’s newly priced 4.25% convertibles traded up in the early going Tuesday after the Woodlands, Texas-based homebuilder priced $75 million of the five-year senior notes at the cheap end of talked terms.

The new LGI convertible was seen at 102 versus shares that were fluctuating. A recent Trace print in the new convertible went up at 102.23. Shares were last seen at $16.60, which was up 5 cents, or 0.3%.

Also in the primary market, William Lyon Homes priced $100 million of 6.5% tangible equity units. The Newport Beach, Calif.-based homebuilder priced the mandatories through the rich end of distribution talk and at the cheap end of premium talk.

William Lyon shares were weak again after dropping sharply on Monday after the mandatory was launched.

Elsewhere, SunEdison Inc.’s convertibles jumped on an outright basis but were called lower on swap as shares surged on news that the St. Peters, Mo.-based solar company is buying Boston-based First Wind for $2.4 billion.

SunEdison’s 2.75% convertibles due 2021 traded at 158.7, which was up nearly 25 points, according to Trace data.

SunEdison’s 2% convertibles due 2018 traded at 151.

SunEdison’s 0.25% convertibles due 2020 traded at 101.5, which was up 8.75 points.

SunEdison shares were up as much as 27% at $21.08 early Tuesday, compared to a previous close of $16.61.

“SunEdison is lower on the big stock move as guys take profit,” a New York-based trader said.

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