Priceline tanks on profit warning; Heartware drops on weak earnings; Spirit Realty slips

By Rebecca Melvin

New York, May 4 – Priceline Group Inc.’s 1% convertible due 2018 initially dropped more than 10 points on an outright basis on Wednesday but pared some of the early loss in busy trading after the Norwalk, Conn.-based online travel services company warned its current-quarter profit will not grow as much as previously expected.

Priceline’s first-quarter earnings were strong, but it said that second-quarter earnings will be hurt by the timing of some holidays including Easter and costs associated with the company’s promotion of its Booking.com brand.

Heartware International Inc.’s convertibles fell in tandem with a slump in the underlying shares after the Framingham, Mass.-based medical device maker posted disappointing quarterly results.

Ahead of its earnings report posted after the market close, Spirit Realty Capital Inc.’s 3.75% convertibles due 2020 slipped to about 109.5 from 110 to 111 during the trading session.

The Scottsdale, Ariz.-based real estate investment trust posted earnings per share that beat estimates by a penny and revenue that was in line with expectations. It also reaffirmed full-year FFO guidance.

Spirit’s convertibles and shares have run up recently on S&P’s upgrade of the REIT’s corporate credit rating and the convertibles.

Spirit Realty shares closed higher by 17 cents, or 1.5%, at $11.72.

Elsewhere, the majority of the convertibles of bankrupt SunEdison Inc. traded at about 5. The newest SunEdison 5% bond was indicated down at 22 from 25.5 previously.

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