Convertible bonds tread water; Whiting steady; Herbalife holds as Ackman sounds off; BofA firms

By Stephanie N. Rotondo

Seattle July 14 – The convertible bond market was little changed in Thursday trading.

Whiting Petroleum Corp.’s 1.25% convertible notes due 2020, for instance, were steady, trading in an 81 to 82 range. The equity underlying the debt, however, ticked up 4 cents to $8.65.

On the equity’s part, it moved up as oil prices rebounded from Wednesday’s lows, closing up 1.63% at $45.48. The commodity had dropped about 4% on Wednesday, as fresh inventory data suggested a global supply glut remained a concern.

Herbalife Ltd.’s 2% convertible notes due 2019 were also barely moved as activist investor Bill Ackman once again called the company’s business practices into question.

The bonds were pegged in a 99.375 bid, 100.125 offered context, versus a stock price of $59.36. For its part, the stock was off a nickel on the day at $59.36.

Meanwhile, Bank of America Corp.’s 7.25% series L noncumulative convertible preferreds added a dollar in trading, closing at $1,213 a share. The common stock meantime ended at $13.65, up 21 cents, or 1.56%.

Those gains came as the bank announced a $1.97 billion redemption of three series of outstanding trust preferred securities.

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