Midday Commentary: Convertibles quiet; SandRidge Energy preferred bid; Teleflex firm

By Rebecca Melvin

New York, Oct. 1 - Convertibles were quiet to start the new month and quarter Tuesday as equities rose in the wake of a partial government shutdown that began overnight in the absence of a Capitol-approved funding plan.

SandRidge Energy Co.'s convertible perpetual preferred shares were bid at 100.75, which is where the shares traded on Monday, a New York-based trader said. Shares of the Oklahoma City-based natural gas and oil company were up 24 cents, or 4%, at $6.10.

Teleflex Inc.'s 3.875% convertibles due 2018 were seen quoted in early action in line with the underlying shares of the Limerick, Pa.-based medical device company. The notes were 140.75 bid, 141.625 offered versus an underlying share price of $82.28. Shares were fractionally higher though from that stock level, which represented Monday's close.

Sectors tagged as at risk with a federal shutdown underway include defense names and homebuilders. But there were no early indications of convertibles in these sectors in trade.

The 3% convertibles due 2024 of Alliant Techsystems Inc., an Arlington, Va.-based defense company, were not being traded or quoted. They were last seen in trade on Friday at 132, according to Trace data. Alliant Techsystems shares were up on the day by $1.44, or 1.5%, at $99.00. Since Friday's close, the shares are off 77 cents.

Homebuilder convertibles were also quiet. But shares of convert issuers Lennar Corp., KB Home and Toll Brothers Inc. were all fractionally higher.

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