Midday Commentary: New, upsized Liberty adds a couple of points outright; upsized Ctrip.com gains

By Rebecca Melvin

New York, Oct. 11 - Liberty Media Corp.'s newly priced 1.375% convertibles traded up a couple of points on an outright basis Friday after being released to the secondary market following pricing of a hugely upsized $900 million of notes beyond the tight end of revised terms for the coupon.

The new Liberty convertible, which was initially talked as a $500 million deal, was seen at 102.125 bid, 102.5 offered, according to a New York-based trader. Liberty shares were jumping around but were last seen higher by $2.30, or nearly 2%, at $125.55.

Ctrip.com International Ltd.'s newly priced 1.25% convertibles jumped sharply after being released for secondary market action following pricing of an upsized $700 million of five-year convertible senior notes at the rich end of talk.

The new Ctrip convertible, which was also going to be $500 million initially, was seen at 105.125 bid, 105.5 offered in the early going compared to the underlying share price, which was little changed, or up 2 cents, at $55.03.

Meanwhile, Seaspan Corp.'s planned $125 million offering of five-year convertibles was canceled, with the company saying the offering would not be in the best interests of its shareholders, according to a press release.

A syndicate source said only that the deal was "pulled" and would provide no further details.

Deutsche Bank, BofA Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC were the joint bookrunners of the terminated deal.

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