New Qihoo notes active, ‘trade well’; Tyson mandatories trade below par; Web.com expands

By Rebecca Melvin

New York, Aug. 1 – Qihoo 360 Technology Co. Ltd.’s two new convertible issues “traded well” on their debut in the secondary market on Friday, edging up on an outright basis and gaining 0.5 point to 0.75 point on a dollar-neutral, or hedged, basis.

Beijing-based PC and mobile internet security products company priced $900 million of the notes in two tranches at what was essentially the midpoint of talk. The premium of the seven-year notes came at the cheap end of talk, however.

Both tranches were at 100.25 bid, 100.625 offered with the stock around $90.00, a syndicate source said Friday afternoon.

Tyson Foods Inc.’s 4.75% mandatories, of which $1.5 billion debuted in the secondary market on Thursday, were quoted at 49, which was below their 50 par but about 0.25 point better than how they ended on Thursday.

The Tyson paper priced at the rich end and beyond the rich end of originally talked terms.

The three deals totaled $2.4 billion of new paper for this past week.

Back in established issues, Web.com Group Inc.’s 1% convertible notes due 2018, which priced a year ago, plunged more than 10 points on an outright basis, but improved on a dollar-neutral, or hedged, basis after the Jacksonville, Fla.-based global domain name register reported quarterly results that missed revenue estimates. Shares dropped 24%.

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