Morning Commentary: New Restoration Hardware trades modestly higher; secondary quiet overall

By Rebecca Melvin

New York, June 19 – Restoration Hardware Holdings Inc.’s newly priced 0% convertibles due 2019 added a couple of points on an outright basis in the early going Thursday after the Corte Madera, Calif.-based specialty retailer priced $300 million of the senior notes at the rich end of talked terms.

On a dollar-neutral, or hedged, basis, the new Restoration Hardware bonds were called up 1 point dollar neutral on a delta of 65%, or 102.625 bid, 103.125 offered versus a share price of $89.00, according to a New York-based trader.

Restoration Hardware shares were last seen at $88.14, up $2.15, or $2.5%.

Elsewhere, convertibles were “more quiet than usual,” a trader said, attributing the lull to a sellsider golf outing that involved a number of convertible clients.

Ciena Corp.’s 0.875% convertibles due 2017 traded little changed at about 99.25 with shares of the Linthicum, Md.-based optical networking gear maker fractionally lower at $22.22.

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