Herbalife lower on overstated member metric; Ctrip.com mixed on swap; Ciena drops

By Rebecca Melvin

New York, March 3 – Herbalife Ltd.’s convertibles pared an early 2-point loss – although the bond was not overly active in trade – as shares fell after the Cayman islands-based weight management and nutrition company said that it had overstated growth of active new members in its last three conference calls.

Convertibles overall continued to be better bid, with Intel Corp., Ctrip.com International Ltd. and Teva Pharmaceutical Industries Ltd. trading mixed in good volume.

One trader described the tone of the market as positive.

A second source said that trading was better with little theme other than that tone has improved. “This rally does have legs.”

“There have been different moves across the board and some stocks have outperformed,” the first trader, based in New York, said.

Ctrip’s complex of convertible bonds were mixed in active trade. The most actively traded of its four bonds was the Ctrip 1.99% convertibles, or the D tranche, and those were better on swap by about 0.5 point to 0.75 point.

The shorter-dated Ctrip 1.25% convertibles, or the B tranche, were lower by about 0.5 point on swap.

Meanwhile, Ciena Corp. tumbled after releasing mixed first-quarter results and a disappointing outlook. The Ciena 3.75% convertibles due 2018 traded down 10.5 points to 112 while shares of the Hanover, Md.-based telecom networking equipment maker fell $3.72, or 18%, to $16.99, notching a 52-week low intraday.

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