ServiceSource, Medidata, Portfolio Recovery join calendar; Endeavour rises on earnings

By Stephanie N. Rotondo

Phoenix, Aug. 6 - The convertible calendar added some new entries on Tuesday as several more Rule 144A offerings were announced.

In addition to MOVE Inc.'s announcement on Monday of an $85 million offering of convertible senior notes due 2018, ServiceSource International Inc., Medidata Solutions Inc. and Portfolio Recovery Associates Inc. also launched deals.

ServiceSource said it was selling $120 million of five-year notes, while Medidata said late Monday that it was offering $200 million of five-year paper.

A trader said Tuesday that the Medidata deal was "doing well" and that it had been upsized to $250 million.

Portfolio Recovery meantime said it would price $250 million of notes due 2020.

While MOVE's stock had initially traded up on Monday, it was giving up some gains come Tuesday, ending down 63 cents, or 4.34%, at $13.90.

The rest of the new issuers were also seeing stock declines. ServiceSource dropped 63 cents, or 4.91%, to $12.19; Medidata came in $7.41, or 7.93%, to $85.99; and Portfolio slipped 67 cents, or 1.28%, to $51.75.

The secondary market, however, continued to be subdued, though earnings news was driving a few names, such as Endeavour International Corp., Stone Energy Corp. and Archer Daniels Midland Co.

Endeavour up on earnings

Endeavour International reported earnings that were better than the previous year, though below analyst estimates.

Still, the company's 5.5% convertible notes due 2016 were on the rise, as was the stock.

Around mid-afternoon, a trader saw the convertibles trading at 79, up over 3 points. The stock was meantime up over 7%, he said.

The securities ended the day at 79.5 versus a share price of $5.30. The stock was up 47 cents, or 9.73%.

For the quarter, the mining company posted a loss of 30 cents per share on revenues of $126.2 million. That compared to a loss of $1.31 per share on revenues of $73.72 million the year before.

While better year over year, the earnings still missed analyst estimates of a 17-cents-per-share loss.

Stone Energy gains

Stone Energy put out earnings as well on Tuesday, reporting a profit gain year over year.

"The stock is way up," a trader said at mid-afternoon. He noted that the 1.75% convertible notes due 2017 were the most active securities of the day.

He said the issue was trading at 101.88 versus a share price of $28.06.

The convertibles finished the day in a 101 to 102 context, while the stock closed up $2.07, or 8.04%, at $27.82.

Late Monday, Stone released the earnings and then held a conference call Tuesday morning.

Second-quarter net income rose to $39 million, or 78 cents per share, from $30.5 million, or 62 cents per share, the year before. Oil and gas revenues were $243.5 million, compared to $220.2 million in the same quarter of 2012.

ADM up despite earnings

ADM said an increase in expenses resulted in a 22% dip during the second quarter.

However, the 0.875% convertible notes due 2016 inched up to a 102.625 to 103.5 range, while the stock gained 3 cents, ending at $37.89.

Net profit was $223 million, or 34 cents per share. For the same period in the previous year, profit was $284 million, or 43 cents per share.

Selling, general and administrative expenses jumped to $452 million from $394 million.

And, revenues dropped 1% to $22.54 million.

Mentioned in this article:

Archer Daniels Midland Co. NYSE: ADM

Endeavour International Corp. NYSE: END

Medidata Solutions Inc. Nasdaq: MDSO

MOVE Inc. Nasdaq: MOVE

Portfolio Recovery Associates Inc. Nasdaq: PRAA

ServiceSource International Inc. Nasdaq: SREV

Stone Energy Corp. NYSE: SGY

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