Cemex unchanged with earnings; Cepheid adds a little as shares slide; Spirit Capital stronger

By Rebecca Melvin

New York, July 18 – Cemex SAB de CV’s 4.875% convertible bounced around in tandem with the underlying shares of the Monterrey, Mexico-based cement producer on Friday on an outright basis, and ended unchanged on a dollar-neutral, or hedged, basis, after the company missed earnings estimates on higher revenue.

Cepheid’s convertibles were lower on an outright basis, but edged up on a hedged basis after the Sunnyvale, Calif.-based molecular diagnostic tests company posted second-quarter earnings that beat estimates by a penny but forecast full-year earnings that were well below analysts’ estimates. The shares sank 9%.

Spirit Realty Capital Inc. saw its two convertible bonds continue to rally back on a swap basis, recouping losses mounted since the dual tranches priced in May.

Otherwise, trading was described as “dull” in U.S. convertibles on Friday.

Equities rebounded from losses notched Thursday when investors were rattled by news of a civilian passenger jet being shot down by a missile near the Russia-Ukraine border, killing all 295 passengers onboard.

One trader said the bounce could be explained by the thinking that the downed plane, as tragic as it is, may ultimately lead to improved stability in the region as Russia is forced to rein in the rebel separatists and pull back from the situation.

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