Tibco lower on hedge after takeout news; Hornbeck, Huron Consulting come in on hedge

By Rebecca Melvin

New York, Sept. 29 – Convertibles were heavy on Monday, but thinly traded, as market players looked to close out their portfolios for month- and quarter-end and put the previous periods behind them, a New York-based trader said.

“There was not a lot of trading, but the sentiment felt awful,” the trader said.

Tibco Software Inc.’s 2.25% convertibles were pulled into trade but barely moved from par where they were previously trading after news that the Palo Alto, Calif.-based business software and services company is selling itself to private equity firm Vista Equity Partners for about $3.98 billion.

The deal, which will take Tibco private and is expected to close in the fourth quarter, sent Tibco shares up 21%.

But convertibles didn’t budge since the takeout is at par. The deal was bad for holders of the bonds on a hedged basis but favorable to those who were short shares.

Hornbeck Offshore Services Inc.’s convertibles extended losses on Monday, trading below par on an outright basis and coming in on a dollar-neutral, or hedged, basis.

Huron Consulting Group Inc.’s newly priced 1.25% convertibles also came in 0.5 point on a dollar-neutral basis as shares of the Chicago-based consulting company added 1.5% on news that it will acquire the assets of Threshold Consulting Inc., a provider of cloud-based Software as a Service at terms that were not disclosed.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.