Yahoo in focus as shares drop; MGM Resorts lower in line; Tesaro on tap in registered deal

By Rebecca Melvin

New York, Sept. 22 – Yahoo! Inc.’s 0% convertibles due 2018 were a focus of trading on Monday as shares of the Sunnyvale, Calif.-based internet search, content and communications company fell sharply on a couple of analysts’ share downgrades.

The Yahoo convertibles moved down another couple of points to around 101.5, compared to 103ish on Friday and 105ish on Thursday.

MGM Resorts International shares were also weak on a downgrade to “market perform” from “outperform” by Wells Fargo, and the convertibles moved lower as well, but looked in line, or flat, with lower shares, a New York-based trader said.

MGM’s 4.25% convertibles due 2015 changed hands at 125.5 near the end of the session, which was down 2.8 points outright, according to Trace data. Earlier the bonds printed at 126.38, which was down 1.9 points on an outright basis, according to Trace.

MGM shares ended lower by 61 cents, or 2.6%, at $22.51.

Concur Technologies Inc.’s 0.5% convertibles remained in trade as well at steady pricing following a jump by about 11 points on Friday on news that German software giant SAP is buying the Redmond, Wash.-based expense management software company.

After the market close, Tesaro Inc. launched an offering of $165 million of seven-year convertible senior notes that was talked at a 2.5% to 3% coupon and a 35% to 40% initial conversion premium.

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