Midday Commentary: New HomeAway trades up 2.5 points on swap; Solazyme stock sags on new deal

By Rebecca Melvin

New York, March 26 - HomeAway Inc.'s newly priced 0.125% convertible traded up in the early going on Wednesday after the Austin, Texas-based vacation rental site priced $350 million of five-year notes at the tight end to beyond the tight end of talked terms.

The new HomeAway bond was trading last around 104.25 with the underlying shares up more than 3% at about $39.90. That was better on a swap, or hedged, basis by 2.5 points, a syndicate source said.

Out of the gate, the bonds were about 103.

"They are trading well," the syndicate source said.

Also in the primary market, Solazyme Inc.'s planned $100 million of five-year convertible senior subordinated notes were seen pricing with a 5% to 5.5% coupon and an initial conversion premium of about 20%, a syndicate source said early Wednesday.

The bonds were being allocated to investors quickly, but there was no set time for pricing, the source said.

As previously reported, the registered offering was coming concurrently with an offering of 5 million shares of common stock.

Solazyme shares slid $1.13, or 8.6%, to $11.96. And the existing Solazyme 6% convertibles, which priced in January 2013, were seen in early action Wednesday at 157.5 bid, 158.5 offered versus an underlying share price of $12.00, a Connecticut-based sellside source said.

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