New Violin Memory quiet on debut; Concur surges outright, slips on hedge; Tibco eases

By Rebecca Melvin

New York, Sept. 19 – Violin Memory Inc.’s newly priced 4.25% convertibles were quiet Friday on their debut in the secondary market after the Santa Clara, Calif.-based computer data storage company priced an upsized $105 million of the five-year senior notes at the midpoint of talk.

But Violin Memory shares rose sharply in the early going, adding about 6% to $4.70, after a drop on Thursday following the launch of the convertibles deal. The Violin Memory shares pared early gains to end up 14 cents, or 3%, at $4.55.

Back among established issues, Concur Technologies Inc.’s 0.5% convertibles jumped on an outright basis by about 11 points as the company’s shares surged 18% to $127.38. But the convertibles contracted on a dollar-neutral, or hedged, basis, by about 0.5 point, depending on one’s delta hedge.

The Concur securities were lifted outright by news that the Redmond, Wash.-based expense management software company will be bought by German software giant SAP for $129 per share in cash, which represents a 20% premium to Concur’s share price late Thursday.

The assumption was that holders will convert into shares after the deal is consummated and receive extra shares as per the bond’s takeover protection matrix, a New York-based trader said.

Elsewhere, Tibco Software Inc. convertibles were slightly off as shares of the Palo Alto-based business software company fell after it reported an earnings miss.

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