Morning Commentary: Whiting Petroleum’s $1 billion deal gains after terms fixed; inContact on tap

By Rebecca Melvin

New York, March 24 – Whiting Petroleum Corp.’s newly priced $1.25% convertibles traded up on their debut in secondary market action after the Denver-based oil and gas exploration and production company priced $1 billion of the five-year notes at the cheap end of talked terms.

The new Whiting notes traded to 103 bid, 102.5 offered versus an underlying share price of $30.44.

“The deal is doing really well,” a New York-based trader said.

Along with the convertible debt, which Whiting launched late Monday, the company priced 35 million shares of common stock at $30.00 per share.

Shares were down sharply early Tuesday at $30.81, which was down $7.58, or 20%.

Also in the U.S. primary market, inContact Inc. was expected to price $100 million of seven-year convertible senior notes after the market close at a 2.5% to 3% coupon and 30% to 35% premium.

Internationally, Aabar Investments PJS was shopping €1.5 billion of bonds in two tranches, exchangeable for shares of Italian bank UniCredit SpA.

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