SunEdison weaker on hedge despite better shares; Avid shares bounce; trading volume thin

By Rebecca Melvin

New York, Aug. 12 – SunEdison Inc.’s convertible bonds continued to contract on Wednesday despite a reversal in the common shares of the St. Peters, Mo.-based solar technology company that left that stock up 6.7% on the day. The shares had been sharply lower in the early going.

“They have not been acting well,” a Connecticut-based trader said of the newest set of longer-dated SunEdison convertibles. “They are still crunching even with the stock turnaround.”

SunEdison dominated Wednesday’s convertibles trading action even as equities were rocked by volatility.

Volume in most energy and technology convertibles was light and their response to the intraday turnaround in equities was not measurable, traders said.

“It’s not trading enough to really notice,” one Connecticut-based trader said of energy.

Avid Technology Inc.’s 2% convertibles due 2020, of which $135 million priced in June, were indicated lower despite a bounce back in the common shares of the Burlington, Mass.-based digital media company following a punishing drop on earnings on Tuesday.

The Avid 2% bonds were seen around 75, which was down from around 81, according to a market source. Meanwhile Avid shares regained 10% to close at $9.40, after dropping about 30% on Tuesday.

Avid disappointed on second-quarter sales, which fell 12% to $112 million, and also on the bottom line, but still raised full-year guidance above estimates.

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