Midday Commentary: Iridium plans $125 million convertible preferreds; BroadSoft drops

By Rebecca Melvin

New York, May 5 - Convertible players were eyeing Iridium Communications Inc.'s planned $125 million offering of cumulative perpetual convertible preferreds, which was launched early Monday.

The new preferreds, with a $250 per share liquidation preference, were talked to yield 6.25% to 6.75% with an initial conversion premium of 20% to 25%.

Iridium's old 7% cumulative perpetual convertible preferreds, of which $100 million priced in October 2012, were not seen in trade, a New York-based trader said.

Iridium shares were lower at $7.48, which was down 15 cents, or nearly 2%, at late morning.

BroadSoft Inc.'s 1.5% convertibles due 2018 traded down on an outright basis to as low as 95.5 and 96 from 102 to 103 on Friday after the Gaithersburg, Md.-based telecom software maker reported first-quarter results that missed estimates and guided current earnings lower than consensus estimates. But the company reaffirmed full-year results, which are in line with expectations.

BroadSoft shares slid $5.00, or 20%, to $20.00 in the early going on Monday.

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