Morning Commentary: Salesforce.com convertibles slip from intraday highs; ON Semiconductor gains

By Stephanie N. Rotondo

Seattle, Nov. 18 – Salesforce.com Inc.’s 0.25% convertible notes due 2018 were trading actively early Friday in an otherwise muted session.

A trader said the bonds were in a 125.625 to 125.875 range at mid-morning, though they had traded “close to 130” earlier in the day.

Another market source also saw the convertibles with a 125 handle, which was deemed up nearly 3 points on the day.

The equity (NYSE: CRM) was following a similar pattern. At mid-morning, the stock was at $77.90, a gain of $2.71, or 3.6%. However, the stock had traded as high as $80.35 in early dealings.

The movement in the name came in the wake of the company’s earnings release on Thursday. The third-quarter results beat expectations, and the company also upped its full-year revenue guidance.

Elsewhere, ON Semiconductor Corp.’s 1% convertible notes due 2020 were inching slightly higher, trading around 98.5, according to a market source.

While the 2.625% convertible notes due 2026 were not overly busy, they, too, were better.

The notes hit a 110 handle, which compared to a 108 handle in the last round-lot trades.

The equity (Nasdaq: ON) was off 17 cents, or 1.48%, at $11.31.

The Phoenix-based chip maker said on Thursday that it was redeeming the 2.625% convertibles on Dec. 30. Holders have a right to convert their holdings until the close of business on Dec. 19.

The conversion rate is 95.2381 common shares per each $1,000 of notes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.