New Knowles adds on swap; Molina drops outright, adds on swap; TiVo, Pandora improve

By Rebecca Melvin

New York, April 29 – Market moves related to earnings news remained a feature of trade in the convertibles market on Friday, but there was also a new deal that edged up in active trade as the underlying shares slipped on the last trading day of the month.

Knowles Corp.’s newly priced 3.25% convertibles traded up a little more than a point on an outright basis, and was higher on swap after the Itasca, Ill.-based advanced micro-acoustic products company priced an upsized $150 million of the 5.5-year senior notes at the rich end and beyond the rich end of talk.

The new Knowles convertibles were last seen at 101.25 with the underlying shares down 24 cents, or 1.8%, at $13.15, a New York-based trader said.

The bonds priced with a 37.5% initial conversion premium.

Back in established issues, Molina Healthcare Inc. was a central focus of traders, and those convertibles fell on an outright basis but improved on a dollar-neutral, or hedged, basis after the Long Beach, Calif.-based Medicaid services company posted quarterly earnings that fell well short of estimates.

TiVo Inc.’s 2% convertibles due 2021 were also active and traded up a few points to about 98.25 after news that Rovi Corp. agreed to buy the Alviso, Calif.-based digital video recorders company for $10.70 per share in cash and stock, or $1.1 billion.

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