Qihoo convertible notes slip on hedge; Verint paper trades in line; Web.com notes slip

By Rebecca Melvin

New York, Aug. 4 – U.S. convertibles were mostly quiet on Monday as summer vacation schedules seemed to kick into a higher gear and as equities meandered in the early going before ending the session higher. But convertibles felt a little heavier.

Topical names were in focus. Qihoo 360 Technology Co. Ltd.’s two new convertibles traded higher on an outright basis, with shares higher, but they were flat to lower on a hedged basis amid outright sellers in the name.

Verint Systems Inc.’s recent new issue saw some action and was generally in line with where it had been, although “in a little from the highs.” The issue was still seen having performed very well and traded only a few times on Monday as a couple of buyers stepped in to scoop up one seller’s offering, a New York-based trader said.

Meanwhile, Web.com Group Inc.’s 1% convertible notes due 2018 continued to see some outright sellers and was a little lower on a hedged basis after the issue plunged more than 10 points on an outright basis on Friday but improved on a hedged, basis.

The Jacksonville, Fla.-based global domain name register reported quarterly results that missed revenue estimates, and shares dropped 24% on Friday. On Monday, with shares down another 1%, the paper was a bit weaker with sellers on credit fears.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.