Midday Commentary: iStar's offering, Barclays' contingent convertibles added to pipeline

By Stephanie N. Rotondo

Phoenix, Nov. 13 - Trading in convertible bonds remained subdued in midweek trading, one trader lamented.

He said that "volume is crazy low."

Still, the primary was seeing some deals added to the calendar.

iStar Financial Inc. announced a Rule 144A offering of $175 million of convertible senior notes due 2016. The company planned to use proceeds, along with cash on hand, to redeem its 5.7% senior notes due 2014.

But a trader said he had yet to see any gray markets and added that even the existing convertible notes were quiet.

The 3% convertible notes due 2016 last traded with a 125 handle.

Meanwhile, Barclays plc planned to sell at least $2 billion of contingent convertible perpetual securities. Price talk was around 8.25%, according to a trader.

Reports were circulating that the deal had already gotten orders of at least $6 billion.

The securities will be non-callable for five years.

Pricing is expected on Thursday.

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