Morning Commentary: Illumina in focus as bonds fall in active trade after sales warning

By Rebecca Melvin

New York, Oct. 6 – Illumina Inc. was a focus in early trade in U.S. convertibles on Tuesday. The bonds fell on the heels of the San Diego-based developer of genetic research tools’ earnings warning.

The Illumina 0% convertible due 2019, or the A tranche, was trading actively and was lower by about 6 points on an outright basis to 101.5 to 102 from about 107.6 to 108.

Illumina’s 0.5% convertible note due 2021, or the B tranche, was down about 5 points to 107.

Illumina’s older 0.25% convertibles due 2016 traded down to about 170 from just under double par previously.

The common shares of Illumina were down about $24.00, or 15%, to $139.40.

Illumina said that weaker European and Asia-Pacific markets necessitated it cutting sales guidance for the rest of the year. For fiscal 2015, the company now projects approximately 18% total revenue growth (21% on a constant currency basis, assuming current exchange rates) and fourth-quarter revenue of approximately $570 million.

Updated GAAP and non-GAAP EPS guidance will be provided when reporting third-quarter results on Oct. 20, the company said in a news release.

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