Weatherford rises as new CEO tapped; DISH pops on S&P 500 add; Square comes in; Pacira on tap

By Stephanie N. Rotondo

Seattle, March 7 – Of the day’s more active convertible bond issues, Weatherford International plc was notable as the company announced it had appointed a new chief executive officer.

At the bell, a market source saw the company’s 5.875% exchangeable senior notes due 2021 adding nearly 8.5 points to close at 128.875.

Toward the end of the day, a trader said the convertible paper was at 128.5.

Earlier in the session, that same trader said the notes were up 9 points, as the equity increased over 14% in early dealings.

The trader pegged the paper in a 129.375 to 129.625 range.

Weatherford’s stock finished up 74 cents, or 12.56%, at $6.63.

Mark McCollum, chief financial officer of Halliburton, was named as the oilfield equipment maker’s CEO and president, the company announced late Monday. McCollum will take over in late April.

Meanwhile, Krishna Shivram, interim CEO, is immediately vacating the post. Shivram took the post in November when Bernard Duroc-Danner exited.

Along with Weatherford, DISH Network Corp.’s 3.375% convertible notes due 2026 were called up 4.25 points, as the underlying stock added around $3.00 a share.

The convertibles were seen around 123.5 at the end of the day. A trader had quoted the issue at 123.625 bid, 123.75 offered at mid-morning.

The company’s shares were meantime up $2.77, or 4.52%, at $64.00.

Gains in the pay-TV-service company’s stock were attributed to news the shares were going to be added to the S&P 500 index on March 13.

DISH’s stock is replacing Linear Technology Corp., which is being taken over by Analog Devices Inc.

Also on the busier side for the day was Square Inc.’s 0.375% convertible senior notes due 2022, a $400 million issue that priced March 1.

One sellsider placed the paper in a 100.875 to 101.25 context, down slightly from Friday levels.

The equity was also slipping, losing a dime to end at $16.76.

On Tuesday, Square said its $40 million greenshoe had been fully exercised, bringing the total amount outstanding to $440 million.

Looking toward the end of the day, Pacira Pharmaceuticals Inc. was expected to price a $300 million offering of five-year convertible senior notes after the market closes.

However, the deal had yet to price as of press time.

The deal was announced on Monday.

Price talk is for a 2.75% to 2.875% yield and an initial conversion premium of 27.5% to 32.5%.

J.P. Morgan Securities LLC, Jefferies & Co. and RBC Capital Markets LLC are leading the Rule 144A deal.

Ahead of pricing, the company’s stock was up 20 cents at $48.65, though it was trading weaker for most of the day.

Mentioned in this article:

DISH Network Corp. Nasdaq: DISH

Pacira Pharmaceuticals Inc. Nasdaq: PCRX

Square Inc. NYSE: SQ

Weatherford International plc NYSE: WFT

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