LGI up 2 points on debut; talk revised on Redwood; SunEdison sellers seize on stock gains

By Rebecca Melvin

New York, Nov. 18 – LGI Homes Inc.’s newly priced 4.25% convertibles traded up out of the gate 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 Monday’s closing share price, and it traded a good amount despite its small deal size.

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

William Lyon shares were weak Tuesday after dropping sharply on Monday. But the shares ended up by 2 cents.

Another two deals were in the market Tuesday for pricing after the close.

Price talk for the planned Redwood Trust Inc. $200 million of exchangeables was revised, and those notes were seen coming at a discount to par of 99.5, according to a market source. The new talk was for a coupon of 5.625% and with an initial conversion premium of 15%, compared to initial talk of a 5.25% to 5.75% coupon and a 17.5% to 22.5% premium.

Back in established issues, SunEdison Inc.’s convertibles saw some outright sellers as shares surged on news that the St. Peters, Mo.-based solar company is buying Boston-based First Wind for $2.4 billion.

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