Morning Commentary: Synchronoss convertibles firm on buyout interest; Red Hat moves with stock

By Stephanie N. Rotondo

Seattle, June 23 – Synchronoss Technologies Inc.’s 0.75% convertible notes due 2019 were pushing higher early Friday on news its largest shareholder had expressed interest in buying out the company.

A trader placed the notes in a 94 to 94.5 context, which was up from 85.5 just over a week ago, he said.

The underlying stock (Nasdaq: SNCR) was meantime up over 38% in early dealings.

Prior to Friday’s market open, Synchronoss confirmed that Siris Capital Group had made an $18 per share bid for the company. That was a 48% premium over Thursday’s closing share price.

Meanwhile, Red Hat, Inc.’s 0.25% convertible notes due 2019 were once again “tracking up and down with the stock,” a trader said.

The convertible debt was up about ½ point at mid-morning, trading between 142 and 142.5, as the equity (NYSE: RHT) added 29 cents.

PROS Holdings Inc.’s 2% convertible notes due 2047 were also moving around, according to a trader, who saw the notes around 90.75 “roughly.”

The $106.25 million Rule 144A offering came June 16 with an initial conversion premium of 75%. The $1,000-par bonds were sold at a discount at $880 each.

PROS’ shares (NYSE: PRO) were only slightly better in early trading.

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