Discounted Restoration Hardware remains below par; planned Ctrip.com seen modestly cheap

By Rebecca Melvin

New York, June 18 – Restoration Hardware Holdings Inc.’s new 0% convertibles remained below par on Thursday after the $250 million deal of five-year senior notes priced at a discount of 98.75. Shares were a little higher early in the session, which helped the bonds, a syndicate source said. But as they climbed higher into the market close, the new bonds didn’t keep pace.

Restoration Hardware’s older 0% convertibles due 2019 traded at 102.2, which was up modestly.

The planned $1 billion deal of Ctrip.com International Ltd., which was launched after the market close on Wednesday, was seen modestly cheap at talked terms. The shorter-dated, $500 million tranche of 2020 notes was seen plus 0.5 point bid in the gray market before final terms were expected to be fixed.

Ctrip’s older 1.25% convertible due 2018 was very heavily traded and was last seen down nearly a point at 115.59, according to Trace data.

Aside from the new and old Restoration Hardware and old Ctrip bonds, BioMarin Pharmaceutical Inc.’s convertibles traded actively and surged on an outright basis after the Novato, Calif.-based biopharmaceutical company announced positive results from a phase 2 trial for a drug to treat children’s dwarfism.

Health care outperformed the overall market, a trader said. But he wasn’t tracking the BioMarin bonds, which are expensive issues.

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