Morning Commentary: Priceline, Illumina in focus, trade in line; Prospect Capital bid lower

By Rebecca Melvin

New York, Aug. 26 – Priceline Group Inc. and Illumina Inc. were among the most actively traded issues again in the convertibles market early Tuesday, and they were trading in line, or unchanged, given where the underlying shares were, a New York-based trader said.

Priceline’s $1 billion of convertibles, which priced earlier this month, were quoted at 98.25 bid, 98.625 offered. Priceline shares were fractionally higher.

Elsewhere, Prospect Capital Corp.’s $400 million of 4.75% convertibles, which priced initially in April, changed hands and were “hanging in pretty well,” despite lower shares following earnings news, a market source said.

The bid was down 0.125 point, and a level quoted on that paper was 98.375 bid, 98.75 offered versus a share price of $10.56, the source said.

Late Monday, the Prospect Capital 4.75% convertibles traded at 98.5. The paper originally priced in April at a discounted reoffer price of 97.75.

Prospect shares were down 57 cents, or 5.2% at $10.41 at late morning.

Prospect’s fiscal fourth-quarter earnings missed estimates.

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