Midday Commentary: Intel convertibles slip with shares after tepid guidance; Golden Ocean prices

By Rebecca Melvin

New York, Jan. 17 - Intel Corp.'s two large convertible issues slipped outright in early trading on Friday after the Santa Clara, Calif.-based chip giant reported fourth-quarter results that were in line with expectations but offered tepid guidance for the current quarter and 2014.

For the current year, Intel said revenue was expected to be flat, which was below expectations for about 1.2% revenue growth.

Intel's newer 3.25% convertibles due 2039 traded at 134.75, which was down about 3.5 points outright on the day, according to Trace data.

Intel's 2.95% convertibles due 2035 also traded actively and were seen at 113.125, which was down 1.6 points, according to Trace data.

Intel shares were down 94 cents, or 3.5% at $25.60 at late morning.

Elsewhere, the U.S. convertibles secondary market was fairly quiet against mixed underlying equities and ahead of the three-day holiday weekend in observance of Martin Luther King Jr. day.

Internationally, Golden Ocean Group Ltd. priced $200 million of five-year convertible bonds with a 3.07% coupon and a 32.5% initial conversion premium.

The deal's $25 million greenshoe was exercised simultaneously with pricing of the $175 million base deal. Pricing came at about the midpoint of talk for the dry bulk shipper's Regulation S offering.

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