Morning Commentary: Tyson units trade around par at open; existing Qihoo lower on hedge

By Rebecca Melvin

New York, July 31 – Tyson Foods Inc.’s newly priced 4.75% tangible equity units traded around par at the market open on Thursday as the broader markets traded off some, a syndicate source said.

The new units had been a little higher pre-open, he said of the units after the Springdale, Ark.-based meat company priced $1.5 billion of the units at $50 par at the rich end and beyond the rich end of originally talked terms.

Tyson also priced about $900 million of common stock, or 23.81 million shares at $37.80 per share. Shares were down 67 cents, or 1.8%, at $37.53 at midmorning.

“The markets are a little bit volatile today so the convertibles may be also,” the syndicate source said.

Elsewhere, Qihoo 360 Technology Co. Ltd.’s existing 2.5% convertibles came in about 2 points on a hedged basis, a trading source said early Thursday, after the China-based provider of PC and mobile internet security products launched a new deal for $900 million of convertibles after the market close on Wednesday.

The existing Qihoo convertibles, which have a much higher coupon than that proposed for the new deal, were quoted 115 bid, 116 offered with the shares at $96.25.

Previously the bonds were around 119. Qihoo shares were down $4.92, or nearly 5%, to $94.08 at late morning.

© 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.