GT Advanced bonds collapse on Chapter 11 filing; Dynegy, Starwood Waypoint to price

By Rebecca Melvin

New York, Oct. 6 – GT Advanced Technologies Inc.’s convertible bonds collapsed on Monday after the Merrimack, N.H.-based solar and LED equipment company filed for Chapter 11 bankruptcy protection.

GT Advanced’s two series of convertibles were the convertibles market’s main focus on Monday, sources said.

“Everybody’s watching GTAT,” a New York-based trader said.

After an initial hesitation, the GT Advanced bonds traded actively around 33, which was down from about 115 for the GT Advanced 3% convertible due 2020, of which $190 million priced in December 2013, and down from 155 for the older GT Advanced 3% convertible due 2017, of which $220 million priced in September 2012.

The GT Advanced bankruptcy didn’t seem to be sending reverberations beyond itself as solar convertible names or other names in the renewable energy sector were mostly quiet, market sources said.

“GTAT is a flash bankruptcy. It is name specific,” a New York-based trader said.

After the market close, the primary market came to life. Dynegy Inc. launched an offering of $400 million of mandatory convertible preferred shares that it plans to price Tuesday after the market close along with 22.5 million shares of common stock.

Also Starwood Waypoint Residential Trust plans to price $150 million of three-year convertible senior notes after the market close on Tuesday.

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