Morning Commentary: GNC trades up a little on debut; Priceline bonds mostly in line after earnings

By Rebecca Melvin

New York, Aug. 5 – GNC Holdings Inc.’s newly priced 1.5% convertibles due 2020 traded up a little from par in the early going Wednesday after the Pittsburgh-based wellness retailer priced $250 million of the senior notes at the rich end of coupon talk and the cheap end of premium talk.

The new GNC 1.5% convertibles were seen trading at 100.5 to 101.5, with the underlying shares of the company fractionally lower.

“I think they held their own,” a New York-based sellsider said regarding the new issue.

Priceline Group Inc.’s trio of convertible bonds were trading actively and looked to be moving about in line, or flat, relative to the underlying shares of the Norwalk, Conn.-based online-booking service. The company reported second-quarter earnings that beat estimates.

Priceline’s stock gained $56.00, or 4%, to $1,339.99.

Priceline’s 0.9% convertibles due 2021 traded at par to 101 and looked to be moving in line, according to a sellsider.

Priceline’s 0.35% convertibles due 2020 changed hands at 122.5, which was up from about 119 on Tuesday, according to Trace data.

Priceline’s 1% convertibles due 2018 traded at 148, which was up 7 points, according to Trace data.

“They all traded pretty much equally in terms of volume,” the sellsider said.

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