Pandora busy, gyrating post-pricing; Vitamin Shoppe subdued; Kinder’s preferreds decline

By Stephanie N. Rotondo

Seattle, Dec. 4 – The convertible bond market was focused on Pandora Media Inc.’s new $300 million of 1.75% convertible senior notes due 2020, a trader reported Friday.

The deal came via Morgan Stanley & Co. LLC with an initial conversion premium of 30%.

Price talk was for a yield of 1.75% to 2.25% and a premium of 25% to 30%.

Meanwhile, the Vitamin Shoppe Inc.’s $125 million of 2.25% convertible senior notes due 2020 – a deal priced late Thursday – were on the quiet side, according to a trader.

“But that stock is up on the day,” he said.

Away from deals priced this week, a trader noted that Kinder Morgan Inc.’s $1.57 billion of 9.75% mandatory convertible preferred stock (NYSE: KMIPA) – a deal priced Oct. 27 at $49.00 per share, with a par value of $50.00 – was getting crushed.

The trader said the paper was trading “either side of $36.”

The preferreds closed at $34.97, down $2.34, or 6.27%.

Additionally, the stock has plummeted from $27.28 on the day of issuance to $17.98, the trader said.

The equity was off over 6% in early Friday trades.

“There’s a lot of stuff like that,” the trader said of the losses. “Stocks are getting crushed in this space.”

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