New Starwood Waypoint adds; Salix jumps outright, flat on hedge; Tower active; Ctrip eyed

By Rebecca Melvin

New York, July 1 – Starwood Waypoint Residential Trust’s newly priced 3% convertibles added on both an outright and hedged basis on their debut in secondary market dealings on Tuesday after the Oakland, Calif.-based real estate investment trust priced an upsized $200 million of the five-year senior notes at the cheap end of talk.

The new Starwood’s convertibles were seen at 100.5 bid, 101.25 offered with the underlying shares up less than a dime in the early going, and the bond deal was deemed a success by market participants.

Salix Pharmaceuticals Ltd.’s convertibles jumped on an outright basis but were flat to slightly lower on a dollar-neutral, or hedged, basis with a surge in the underlying shares after the Raleigh, N.C.-based drug maker announced positive drug trial data.

Tower Group International Ltd.’s 5% convertibles due in September traded at 85 bid, 87 offered as shares bounced higher following a plunge on Monday. Worries over the proposed takeover of the Bermuda-based insurance and reinsurance company by ACP Re Ltd. were moving the securities.

Ctrip.com International Ltd. remained in focus on Tuesday as the underlying shares of the Chinese interest site continued to edge up after a 5% jump on Monday. In all, the Ctrip shares are up about 20% in the last month, a run that has encompassed other China stocks as well.

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