Midday Commentary: New 51job up slightly amid lower shares; Genco shoots up on restructuring news

By Rebecca Melvin

New York, April 4 - 51job Inc.'s newly priced 3.25% convertible bonds were heard at par to 101 in the early going Friday despite lower shares after the Shanghai-based online recruiting services firm priced $150 million of the five-year notes at the cheap end of talked terms, a New York-based trader said.

51job shares fell as much as 4% in early trading but were last down about 2.5% at $66.80.

Genco Shipping & Trading Ltd.'s 5% convertibles due 2015 shot up in active trading to just under par after the New York-based drybulk shipping company said that it has reached a restructuring agreement with most of its lenders that will pave the way to a Chapter 11 bankruptcy reorganization.

Genco's 5% convertibles were seen as high as 99.5, a New York-based trader said, which was up from the mid 80s previously.

Genco shares surged up more than 40% but were last seen up 53 cents, or 35%, at $2.06.

Elsewhere the convertibles market was quiet, sources said.

Equities reversed course after a slightly higher start after the U.S. Labor Department reported March U.S. nonfarm payrolls rose a seasonally adjusted 192,000 and the unemployment rate held steady at 6.7%.

The tally fell short of the expectations of surveyed economists for 200,000 jobs and a 6.6% unemployment rate.

The Labor Department also revised upward the January and February payroll figures.

The S&P 500 stock index was last off a little more than 3 points at 1,885.49.

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