Midday Commentary: Carriage Services trades flat to higher; Leap active after change of control

By Rebecca Melvin

New York, March 14 - Carriage Services, Inc.'s newly priced 2.75% convertibles were heard trading modestly better in the 100.25 to 101.25 range and also somewhat weaker with shares off early Friday, market sources said. The bonds were last seen at 100 bid.

The Houston-based funeral home and cemetery operator priced $125 million of the seven-year notes at the rich end of talked terms late Thursday.

Carriage Services shares were down 13 cents, or 0.8%, at $16.90 at late morning, extending Thursday's 9% loss.

Elsewhere the convertibles of Leap Wireless International Inc. were in focus after AT&T Inc.'s $1.2 billion takeover of the San Diego-based digital wireless services provider closed late Thursday.

Leap provided make-whole fundamental change notice to holders of its. 4.5% convertible senior notes due 2014, and those bonds were seen trading at 101.10 bid, 101.20 offered, which was up a bit from 100.9 bid, 101 offered previously, a New York-based trader said.

Otherwise, the convertibles market was fairly quiet, and in the absence of a ton of new paper, traders went back to Priceline.com Inc., which saw its 1% convertibles atop the Trace volume chart as investors rotate out of the issue in favor of the newer Priceline 0.35% convertibles, which have a lower delta.

Tesla Motors Inc.'s three sister convertibles were trading with all three lower, including the Tesla 1.25% convertibles due 2012, which were down more than a point at 94.625, according to Trace data. Tesla shares were down 3%.

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