Convertibles trade quietly, flat on hedge; Priceline unchanged; Photronics shares higher

By Rebecca Melvin

New York, Aug. 21 – U.S. convertibles traded quietly and in line, or flat, on a hedged basis on Thursday in tandem with their underlying shares as the dog-days of August progressed.

Priceline Group Inc. and Illumina Inc. were among the most actively traded issues again, as has been the case all week.

Priceline’s $1 billion of convertibles, which priced earlier this month, traded near the unchanged mark at around 98.5. Priceline shares were fractionally lower.

“They look pretty flat; they are still trading below the reoffer price,” a New York-based trader said of Priceline.

Elsewhere, shares of Photronics Inc. extended gains on a stock upgrade following better-than-expected quarterly results reported late Tuesday. Needham upgraded the shares to “buy” from “hold.”

Photronics’ older 5.5% convertibles, which mature later this year, were quoted up multiple points to 183.5 but weren’t seen to have traded Thursday amid a 5.5% climb in the underlying shares.

Photronics’ newer 3.25% convertibles due 2016 were also quiet Thursday and last seen in trade at about 106. Brookfield, Conn.-based Photronics is a maker of semiconductor manufacturing components.

Shares of Cubist Pharmaceuticals Inc. were higher in early trading, and those bonds were in focus. The Cubist 1.875% convertibles due 2020 changed hands at 110.965, which was up 0.5 point, according to Trace data. And the Cubist 2.5% convertibles due 2017 traded at 230.75.

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