Secondary mostly quiet; primary heats up after close; Whiting Petroleum to price $1 billion

By Rebecca Melvin

New York, March 23 – Convertibles put in a quiet session on Monday as stocks wavered and the few convertible issues that were mentioned in trade moved in line, or flat, with the underlying equities, market sources said.

“It’s one of the quieter days I’ve seen this year,” a New York-based sellsider said, surmising that school spring breaks were keeping some market players away from their desks and slowing the market.

After the close, the primary market – very quiet of late – came to life, however.

Whiting Petroleum Corp., a Denver-based oil and gas exploration and production company, which has seen some chatter about it being a possible acquisition target, launched a $1 billion deal of five-year convertible senior notes in the market. The deal is coming concurrently with a $1.25 billion secondary stock offering from the energy company and a third deal for $750 million of eight-year straight notes.

The Whiting deal is expected to price ahead of the market open on Tuesday.

Whiting shares fell sharply in after-hours trade.

Also launching after the market close on Monday was inContact Inc.’s $100 million of seven-year convertible senior notes. That deal, talked at a 2.5%-3% coupon and 30% to 35% premium, was expected to price after the market close on Tuesday.

In the international primary arena, Aabar Investments PJS launched an offering of €1.5 billion of bonds in two tranches, exchangeable for shares of Italian bank UniCredit SpA.

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