Morning Commentary: Priceline up slightly with shares; Aegerion selling $250 million convertibles

By Rebecca Melvin

New York, Aug. 11 – Early trading action in U.S. convertibles on Monday was pretty light. But Priceline Group Inc. was in focus and traded after the online travel company beat earnings estimates and reported revenue that was in line with expectations for its latest quarter. But it guided current-quarter earnings below estimates.

Priceline’s 1% convertibles due 2018 showed up on Trace data at 149.75 early Monday, which was up a couple of points in tandem with shares that were up by 2.5% at $1,313.35.

The Priceline bonds were characterized as “rich,” and not widely traded, however, a New York-based trader said.

In primary market action, Aegerion Pharmaceuticals Inc. launched a deal set for same-day pricing for $250 million of five-year convertible senior notes. The notes were seen pricing with a 2% to 2.5% coupon and a 30% to 35% initial conversion premium.

Aegerion Pharmaceuticals shares dropped in the early going and were last down $1.63, or 5%, at $29.93.

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