Morning Commentary: New KEYW adds outright with stock sharply higher; Intel gains outright

By Rebecca Melvin

New York, July 16 – KEYW Holding Corp.’s newly priced 2.5% convertibles due 2019 traded up to the 104 context early Wednesday, but trading action was very light after the Hanover, Md.-based cyber-security services company priced an upsized $130 million of the notes at the cheap end of talked terms.

The new KEYW convertibles were quoted up “about 4 points outright,” but the spread was fairly wide, a syndicate source said.

KEYW’s shares rose 7%, so the convertibles were underperforming, a second market source said. Stock borrow was very limited, which hindered hedged participation.

Elsewhere, Intel Corp.’s sister convertibles traded actively and about 2 points higher each after the Santa Clara, Calif.-based chip giant posted stellar earnings that sent its shares up as much as 7%.

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