Blackhawk active, edges up again on swap; Yahoo! trades in line after long-awaited deal

By Rebecca Melvin

New York, July 25 – Blackhawk Network Holdings Inc.’s convertibles edged up again in active trade on Monday, expanding another 0.375 point on a dollar-neutral, or hedged, basis, after the Pleasanton, Calif.-based payment services company’s $460 million of senior notes debuted in the secondary market on Friday.

“It was just a continuation of trading from Friday, a New York-based trader said of the new Blackhawk bond, which expanded 2 points in its debut.

Elsewhere, Yahoo! Inc.’s 0% convertible senior notes due 2018 were little changed on both Monday and Friday after word that Verizon Communications Inc. has agreed to buy Yahoo!’s operating business for $4.83 billion in cash.

“Yahoo! traded in line, post news, which was surprising to me,” a New York-based trader said. He said he had expected the bonds to contract on a dollar-neutral, or hedged, basis on the Verizon deal news because it meant that there was no more catalyst potential to move the stock and it was evident that bondholders will not get a kiss or any kind of inducement to keep the bonds outstanding.” The Yahoo! 0% convertibles due 2018 were seen at 99.75 bid, 100.25 offered at the market close.

There was a little lower pricing in the oil patch as crude oil prices slipped. The Weatherford International Ltd. convertibles were a point lower at 113.25. Shares of the international oilfield services company were down 12 cents, or 2%, at $5.70.

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