NetSuite convertibles rise on Oracle takeover news; Blucora retreats on financial results

By Stephanie N. Rotondo

Seattle, July 28 – Another round of takeover and earnings news was helping to push around convertible bonds on Thursday.

NetSuite Inc.’s convertible bonds – and stock – got an upward push by news the cloud software provider was being acquired by Oracle Inc. for $9.3 billion. That takeover announcement came on the heels of Sequenom Inc.’s merger with Laboratory Corporation of America Holdings on Wednesday, which sent Sequenom’s debt up to par from levels around 60 previously.

In earnings news, Blucora Inc. reported its second-quarter results. While the numbers were improved overall, a trader said they still failed to meet analysts’ expectations. As a result, the converts traded “down on delta.”

Extra Space Storage Inc. meantime put out its quarterly results late Wednesday. Come Thursday trading, the convertibles were trading lower, as was the equity underlying the bonds.

Away from takeover- and earnings-driven names, Blackhawk Network Holdings Inc.’s $500 million of 1.5% convertible senior notes due 2022 were off a touch as the company said its greenshoe had been fully exercised.

The bonds slipped just over half a point to 103.415, according to a market source. The stock fell 32 cents to $35.67.

The company priced the $460 million deal on July 21. With the $40 million greenshoe, total issuance was lifted to $500 million.

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