NXP Semiconductors adds a point on swap; Workday lower with shares; Intel adds for week

By Rebecca Melvin

New York, Nov. 25 – NXP Semiconductors NV’s new 1% convertibles traded up outright and added on a dollar-neutral, or hedged, basis Tuesday after the Dutch semiconductor components company priced $1 billion of the new notes at the cheap end of talked terms.

The new NXP convertible traded at 101.375, according market sources. On swap, they were seen up a point.

The new deal seemed to perform in line with expectations. Prior to pricing, a syndicate source said he expected the deal to trade up but not by as much as LinkedIn Corp.’s recent $1.15 billion deal did on its debut earlier this month.

The LinkedIn 0.5% convertibles moved up to 102.25 bid, 102.75 offered on first-day trading with shares at $225.00.

Back in established issues, Workday Inc.’s convertibles were in focus after the Pleasanton, Calif.-based cloud-based computing company posted earnings that sent its shares lower by nearly 6%.

The Workday 1.5% convertibles traded down to about 128 compared to a previous level of 132. The Workday 0.75% convertible traded down to 123.5 from about 128.

“Accounts are putting money to work in balanced names,” a New York-based trader said, referring to at-the-money issues in the par to 130 range and with three to five years left until maturity.

Meanwhile, Intel Corp.’s 2.95% convertibles expanded 0.75 point this week following a Barron’s magazine article that predicted 30% upside for the Santa Clara, Calif.-based chipmaker.

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