Convertibles mostly in line; SanDisk, Yahoo! flat; Interactive Intelligence notes on tap

By Rebecca Melvin

New York, May 18 – U.S. convertibles traded quietly and little changed on Monday in tandem with the broader markets, which were narrowly mixed with stock markets edging up and Treasuries down.

Early on, there were active Street markets in SanDisk Corp., a New York-based trader said. Those were mostly in line, although there may have been a little strength as shares edged higher.

“It’s really very, very quiet. There is nothing going on,” the trader said.

With SanDisk shares up 44 cents, or 0.7%, at $67.63, the SanDisk 0.5% convertibles due 2020 traded in line to a little better at 102.5 to 103, according to Trace data.

The Milpitas, Calif.-based data storage company’s older 1.5% convertibles due 2017 traded at 142.87, which was up about 0.4 to 0.5 point.

Yahoo! Inc.’s 0% convertibles were also moving in line with shares of the Sunnyvale, Calif.-based internet company. The bonds were at 108.425, down about 0.9 point, according to Trace data, when shares were lower by about 1% at $44.25.

“Yahoo! is mostly on the offer side; nothing has really changed,” a New York-based trader said.

In the primary market, Interactive Intelligence Group Inc. launched after the market close an offering of $150 million of five-year convertible senior notes. The deal was talked at a 1.25% to 1.75% coupon and a 27.5% to 32.5% initial conversion premium.

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