Midday Commentary: New UTi Worldwide trades around 103; existing Tesla slips ahead of new deal

By Rebecca Melvin

New York, Feb. 27 - UTi Worldwide Inc.'s newly priced 4.5% convertibles traded around 103 early Thursday after the Virgin Islands-based ocean freight and logistics company priced $350 million of the five-year convertibles at the tight end of talk, a syndicate source said.

UTi's 103 bond price was against a stock that wavered slightly in the early going but was looking weaker at down 6 cents, or 0.6%, by late morning, after a 30% plunge on Wednesday.

Market players were more focused on the planned $1.6 billion offering of convertibles from Tesla Motors, Inc., which was expected to price after the market close, a New York-based trader said.

"There was a little pre-market noise in the Street, and after that nothing," the trader said regarding UTi.

"People seem excited for Tesla," he said.

Tesla's existing 1.5% convertibles slipped in early trade to as low as 207 from about 214 on Wednesday, according to Trace data. These bonds have been on a tear lately in tandem with the underlying shares of the Palo Alto, Calif.-based electric car marker.

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