Morning Commentary: Muted trade including Intel, Priceline, Liberty/Charter; primary market quiet

By Rebecca Melvin

New York, Aug. 25 – The convertibles market continued to trade quietly as the dog days of August wore on. There was muted trading of Intel Corp., Priceline Group Inc. and Liberty Interactive LLC’s debentures exchangeable into shares of Charter Communications Inc., as the underlying shares of those issues traded fractionally higher, a market source said.

The primary market has been mute this week after an unusually busy few weeks in the early part of the month for the new issue market. For August so far, there have been $7.59 billion in 13 deals, which is up from $1.09 billion in three deals for all of August in 2015, according to Prospect News’ data.

The month’s notable new deals have included the two Liberty deals. In addition to the $750 million of debentures exchangeable into shares of Charter, this month Liberty Media Corp. priced $444.6 million of debentures exchangeable into shares of Time Warner Inc.

DISH Network Corp.’s $3 billion of 3.375% convertible notes, which priced in early August, was a definite coup for the market, and Dominion Resources Inc. priced a large deal of $1.25 billion of 6.75% equity units.

Back in established issues, Intel’s 3.25% convertibles due 2039 changed hands little changed at 172.375.

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