Morning Commentary: Allegheny Technologies, Salesforce.com convertibles mostly flat in active trade

By Rebecca Melvin

New York, May 20 – Allegheny Technologies Inc.’s 4.75% convertibles remained in focus on Friday at mostly flat pricing after the $250 million issue put in a weak debut in the convertibles market on Thursday.

Allegheny Technologies’ 4.75% convertibles were quoted at 98.5 to 99 by a New York-based trader, against underlying shares that were around $11.25 to $11.28. That pricing was little changed on Thursday when the paper eked out a 0.25 point to 0.5 point gain on a dollar-neutral, or hedged, basis.

Salesforce.com Inc.’s 0.25% convertibles due 2018 were firm after a 3-point outright jump on Thursday, trading at late morning at 132.3 according to Trace data, against shares of the cloud software company that were up about 0.3% to 0.5% at $81.45.

Salesforce gained this past week after beating earnings estimates and raising its revenue guidance.

On Wednesday, the Salesforce bonds were 128.3 against shares at $77.87.

Also trading actively was Tesla Motors Inc., and the electric car maker’s bonds were a little stronger in tandem with stronger shares.

Tesla’s 1.25% convertibles due 2021 were up 1.5 points to 90.9, according to Trace data. The Tesla 1.5% convertibles due 2018 were up 1.1 points to 178.3. Tesla shares were up $3.30, or 1.5%, at $291.00 in strong volume.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.