Morning Commentary: New Quidel convertible trades up a bit; BPZ Resources slides with shares

By Rebecca Melvin

New York, Dec. 3 – Quidel Corp.’s newly priced 3.25% convertibles traded up a point or two in the early going on Wednesday after the San Diego-based provider of diagnostic tests priced $150 million of the six-year senior notes at the cheap end of the talked coupon range and at the midpoint of premium talk.

Quidel traded up to 101 to 102 and then came back in a bit as the underlying shares fluctuated, a New York-based trader said.

“The stock hasn’t done awesomely. But they priced it reasonably cheap, and it has done pretty well,” the trader said.

Quidel shares were down a nickel at $23.70 at late morning, after sliding 13% on Tuesday.

Also in the primary market, Cyan Inc. launched a small, $50 million offering of five-year convertible senior notes and related warrants via bookrunner Jefferies & Co. LLC. Further details were not immediately available.

Back in the secondary market, BPZ Resources Inc. was in focus as the underlying shares of the Houston-based oil and gas company slid 45% to $0.19.

The BPZ Resources convertibles were offered in the Street in the 40s, a trader said.

“It’s the pain name of the day today,” the trader said.

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