New Blackhawk trades up 2 points on swap; Pandora treads water as stock reverses course

By Rebecca Melvin

New York, July 22 – Blackhawk Network Holdings Inc.’s newly priced 1.5% convertibles due 2022 traded up in active trade on Friday after the Pleasanton, Calif.-based payment services company priced an upsized $460 million of the 5.5-year senior notes at the rich end and beyond the rich end of talked terms.

The new Blackhawk 1.5% convertibles traded at 102.375 in the early going, according to Trace data. A later level was 102.375 bid, 102.875 offered against $35.70 for the common stock price, according to a syndicate source.

At mid-afternoon, the new Blackhawk bond was seen at 103 bid, 103.5 offered against a common stock price of $36.89. It had expanded 2 points on a dollar-neutral, or hedged, basis, the syndicate source said.

The Blackhawk common shares closed up $1.54, or 4.4%, at $36.51.

Blackhawk was the most actively traded name in the convert space on Friday with $115 million of bonds changing hands by late morning out of total volume of $215 million of convertibles, according to Trace data.

The deal, which was initially talked at $425 million in size, priced with a 1.5% coupon and a 42.5% initial conversion premium.

Pandora Media Inc.’s convertibles were about unchanged on Friday as shares reversed course, trading higher after an after-hours slump on Thursday upon release of the company’s second-quarter earnings report.

Pandora’s 1.75% convertibles due 2020 traded at 100.29, with shares up 48 cents, or 4%, at $12.475. Late Thursday, the shares had dropped sharply.

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