DISH Network expands on swap; Yahoo! gains; Vipshop steady to higher ahead of earnings

By Rebecca Melvin

New York, Aug. 15 – DISH Network Corp.’s recently priced convertible bonds expanded on a dollar-neutral, or swap, basis on Monday, as did Yahoo! Inc.’s convertible senior notes due 2018, which were up about 0.5 point on swap and were still being looked at to determine what impact Verizon Communications Inc.’s buyout of Yahoo!’s operations may have on the bonds, convertibles traders said.

Otherwise, the convertible bond market was quiet on Monday as equities and commodities, including oil, strengthened on the day. U.S. stock indices rose to new all-time highs, and crude oil touched a one-month high. But stock moves were on light volume.

The DISH 3.375% convertible notes due 2026 traded up a couple of points on an outright basis and were better by about 0.375 point on a swap basis, with better shares. The DISH convertible was the most actively traded name in the convertibles space on the first day of the last half of August.

The $3 billion DISH deal, which priced earlier this month, traded last at 107.1, which was up 2 points from the previous level, according to Trace data. The DISH common shares that underlie the debt were up $1.50, or 3%, at $52.51.

Elsewhere, Vipshop Holdings Ltd.’s 1.5% convertibles were slightly higher, changing hands at 107.45, or up about 0.25 point on the day, with the underlying shares up about 2%. The Guangzhou, China-based online discount retailer is slated to report quarterly earnings after the market close.

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