Morning Commentary: Priceline off a bit in early trade; Gilead active, less 1.5 points to parity

By Rebecca Melvin

New York, Aug. 18 – Priceline Group Inc.’s 0.9% convertibles due 2021, which debuted in the secondary market on Friday, were seen at 98 bid, 99 offered in early trading on Monday, according to a syndicate source.

The paper had gone out Friday a little higher at 98.5 bid, 99.5 offered, and that compared to the 99 reoffer price at which the paper started the day.

Shares of the Norwalk, Conn.-based online travel company were a little stronger at $1,283.52 on Monday, which was up $13.40, or 1.1%.

A New York-based trader said he was seeing only sellers in the Priceline paper on Monday. “Also the leads don’t have to stabilize anymore, so there are no natural bids,” he said.

The Norwalk, Conn.-based online travel company priced $1 billion of the seven-year senior notes at the cheap end of talked terms, including a 99 to 99.25 reoffer price and a 0.75% to 0.9% coupon. It also came at the fixed 60% initial conversion premium that was talked.

Of Priceline’s other convertible issues, the 1% convertibles due 2018 changed hands early Monday at 145.8, which was up about 0.5 point on an outright basis, according to Trace data. The Priceline 0.35% convertibles due 2020 were quiet after having traded late Friday at 119.4.

Elsewhere the market was described as quiet. Gilead Sciences Inc. was a top trader of the day so far, according to market sources. The notes were seen trading less 1.5 points to parity as Gilead stock was making new highs, a New York-based trader said.

There were outright sellers into hedge buyers on the Gilead, the trader said.

Gilead’s 1.625% convertibles due 2016 traded up about 12 points to 444.75 with shares up nearly $2.00 or 2% at $101.27.

© 2015 Prospect News.
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