inContact surges on swap after takeout news; Tesla gains ahead of secondary offering news

By Rebecca Melvin

New York, May 18 – inContact Inc.’s convertibles gained in active trade on Wednesday, benefitting both hedged and outright convertibles players, after news that the company is being acquired.

The inContact 2.5% convertibles due 2022 surged 23 points on an outright basis, and expanded on swap, in very active trade after news that the Salt Lake City-based cloud software company is being acquired by NICE Systems for $940 million in cash.

The bonds expanded about 5.5 points on a swap basis if holders were on a 65% delta, a New York-based trader said.

Tesla Motors Inc.’s convertibles traded higher in active trade on Wednesday before the Palo Alto, Calif.-based electric car maker announced a secondary offering of $2 billion of common stock after the market close. Shares were off about 1% in after-hours action at $209.00.

Tesla’s 0.25% convertibles due 2019 traded up to 93.5 in Wednesday’s regular session from about 91 to 91.5 on Tuesday.

Tesla’s 1.25% convertibles due 2021 traded up to 88.25 from about 86 previously.

Tesla’s 1.5% convertibles due 2018 traded last at 171.50, which was up from 168 previously.

In other after-hours action, Salesforce.com shares jumped 6% after the cloud software company released earnings that beat estimates and raised its revenue guidance.

Salesforce’s 0.25% convertibles due 2018 were last at 128.3, which was up about a point on the day. Shares closed at $77.87, which was up $1.10, or 1.4%.

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