Intel up ahead of earnings; Iconix adds a point; Belden, Blackhawk Network launch deals

By Rebecca Melvin

New York, July 20 – Intel Corp.’s two convertible bond issues traded quietly and slightly up on Wednesday ahead of the Santa Clara, Calif.-based semiconductor giant’s second-quarter earnings report expected after the market close.

Intel shares gained 1.5% during regular trading to close at $35.69, but they traded down 2% in after-hours action, seemingly indicating that the earnings report disappointed a little bit.

The semiconductor bellwether reported profit that was sharply lower than the same period last year on revenue that was largely in line with expectations.

In the primary market, two chunky deals launched for pricing on Thursday. Belden Inc. plans to price $450 million of convertible mandatory preferreds ahead of the market open on Thursday that were talked to yield 6.25% to 6.75% with an initial conversion premium of 10% to 15%, according to a syndicate source.

And Blackhawk Network Holdings Inc. plans to price $425 million of 5.5-year convertible senior notes after the market close on Thursday that were talked to yield 1.5% to 2% with an initial conversion premium of 35% to 40%.

Otherwise trading was fairly quiet and sparked primarily by earnings news.

Iconix Brand Group Inc.’s 1.5% convertibles due 2018 traded at 82.625, according to Trace data, and were seen at 83 bid, 83.5 offered at the market close, according to a Connecticut-based trader. That was up by about a point, he said.

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