Dycom gains after strong earnings, guidance; WebMD launches deal; TimkenSteel prices

By Rebecca Melvin

New York, May 25 – Dycom Industries Inc.’s 0.75% convertibles due 2021 jumped in active trade on Wednesday, rising more than 6 points on an outright basis and expanding about 0.75 point on dollar-neutral, or hedged, basis after the Palm Beach Gardens, Fla.-based specialty contracting company reported better-than-expected quarterly results and guided higher for current quarter earnings.

The Dycom 0.75% convertibles due 2021 traded up to 109.6 by late morning from 103.2 previously, according to Trace data. Dycom shares were up $8.50, or nearly 12%, to $80.72 at that point.

After the market close, WebMD Health Corp. launched an offering of $300 million of seven-year convertibles that was expected to price before the market open on Thursday. The convertibles were talked to yield 2.125% to 2.625% with an initial conversion premium of 30% to 35%, according to market sources.

The Elmwood Park, N.J.-based provider of health information services said proceeds will be used for general corporate purposes, which may include acquisitions, repurchases of common shares and/or outstanding convertibles and working capital.

WebMD’s two existing convertible bond issues traded mixed on Wednesday.

TimkenSteel Corp. priced $75 million of five-year convertible bullets ahead of the market open at the cheap end of talked terms for a 6% coupon and 20% initial conversion premium. But the new bonds were not heard in trade as shares slid 13% in the early going.

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