Energy names jump with higher crude oil prices; Intel bonds mixed; Pernix to tap market

By Rebecca Melvin

New York, April 15 – Energy convertibles moved up strongly on both an outright and hedged basis on Wednesday as crude oil prices spiked to their highest levels of the year and data came in suggesting that crude production may be peaking and global demand rising.

Whiting Petroleum Corp.’s convertibles were up about 0.5 point on a dollar-neutral, or hedged, basis in active trade, traders said.

Penn Virginia Corp.’s 6% convertible preferred shares traded up to 69 versus an underlying share price of $8.00. Shares of the Radnor, Pa.-based oil and gas drilling company jumped 7.4%.

“Energy names were up about a point across the board,” a New York-based convertibles trader said.

Elsewhere, Intel Corp.’s two sister convertibles traded higher on an outright basis with one higher on swap and the other flat on the back of quarterly results that pulled the chip giant’s shares higher by 4%.

SanDisk Corp.’s convertibles were not very active but a little better on an outright basis ahead of earnings news expected after the market close from the Milpitas, Calif.-based flash memory chip maker.

In the primary market, Morristown, N.J.-based specialty pharmaceutical company Pernix Therapeutics Holdings Inc. said it plans to price $120 million of six-year convertible senior notes after the market close on Thursday to yield 3.75% to 4.25% with an initial conversion premium of 27.5% to 32.5%.

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