Morning Commentary: Priceline adds in line; Newmont expands; Horizon contracts as shares drop

By Rebecca Melvin

New York, Feb. 29 – U.S. convertibles started out the new week with a quiet open early Monday, market sources said.

Many of the larger, liquid names in trade were in line with their underlying shares, or flat on a dollar-neutral basis.

Priceline Group Inc. was among the names trading actively, and those issues were a bit higher on an outright basis along with shares of the Norwalk, Conn.-based internet travel company’s stock, which was moving upward and last higher by nearly 2%.

Priceline’s 1% convertibles due 2018 traded up 1.5 points to 141.8, and the Priceline 0.35% convertibles due 2020 were up 0.7 points at 120.8, according to Trace data.

Priceline shares were up about $24.00, or 1.9%, at $1,278.21.

Newmont Mining Corp.’s convertibles were up about 0.25 point on a swap basis as the common shares of the Denver-based gold and copper company strengthened.

“The bonds are now trading 0.27% yield to maturity,” a New York-based trader said of the Newmont bonds.

Elsewhere, the convertibles of Horizon Pharma plc fell on an outright basis and contracted on swap after the Irish pharmaceutical company reported quarterly results that missed on earnings but beat on revenue. Horizon shares were last down 17%.

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