Morning Commentary: Twitter’s $1.8 billion deal slips to about 99 in trade; Liberty Media down

By Rebecca Melvin

New York, Sept. 12 – Twitter Inc.’s newly priced convertible bonds traded down a little bit in the early going Friday after the San Francisco-based social media company priced an upsized $1.8 billion of the senior notes in two equal tranches of five- and seven-year paper at the midpoint of talk, market sources said.

The Twitter 0.25% A tranche was trading at 98.75 bid, 99 offered versus an underlying share price of $52.60; and the Twitter 1% B tranche was trading a little higher at 99.0625 bid, 99.375 offered versus the same share price, a Connecticut-based trader said.

A second trader said the level on the 1% Twitter convertibles was 99 bid, 99.25 offered.

The Twitter deals were upsized by 38% from an initially talked $1.3 billion.

Elsewhere, Liberty Media Corp.’s convertibles were trading at 100.625 versus a share price of $48.76. That is down another 0.5 point, making these bonds down about 2.5 points for the week, a New York-based trader said.

But DDR Corp.’s 1.75% convertibles have improved as the stock volatility picked up with a UBS downgrade. This paper looks very cheap, the New York-based trader said.

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