Morning Commentary: Qihoo notes trade higher, in line with stock; BroadSoft shares jump

By Rebecca Melvin

New York, Aug. 4 – Qihoo 360 Technology Co. Ltd.’s two new convertibles, which debuted in the secondary market on Friday, were seen up, in line with the underlying shares early Monday, a New York-based trader said.

The Qihoo 0.75% convertibles due 2020 and the 1.75% convertibles due 2021, which are tranches of $450 million each, were both seen at 102 with the underlying shares up $3.44, or 3.8%, at $93.96.

On Friday, both tranches were seen at 100.25 bid, 100.625 offered versus a share price of $90.00.

Elsewhere, trading was said to be muted.

“It’s very slow this morning. A lot of people are on vacation, a New York-based trader said.

A couple of earnings reports were in focus, a Connecticut-based sellsider said, but trading in the convertibles attached to those reports was also quiet, sources said.

Intelsat SA’s 5.75% mandatory convertible preferreds looked to be about in line in tandem with strength in the mandatory’s underlying shares, after the Luxembourg-based fixed satellite services provider reported a profit for its second quarter, compared to a loss for the same period last year, and reaffirmed full-year revenue guidance that was in line with analysts’ expectations.

The Intelsat mandatory, which has a 50 par, was last at 50.84. That was up 2.5 points outright, or 5%, with the underlying shares of the company up 67 cents, or 3.7%, at $18.80.

BroadSoft Inc.’s 1.5% convertibles due 2018 were not heard in trade, but were last around 100. Shares surged 9% or 10%, however, after the Gaithersburg, Md.-based telecom software maker reported second-quarter earnings and revenue that beat estimates and guided full-year earnings above estimates.

The company also announced its acquisition of Systems Design & Development Inc.

Shares were last up $1.93, or 8%, at $25.65.

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