Morning Commentary: Planned Interactive Intelligence looks cheap on the mids; Emerald Oil gains

By Rebecca Melvin

New York, May 19 – The planned Interactive Intelligence Group Inc. $150 million of five-year convertible senior notes were looking about 1.5 points cheap at the midpoint of price talk, assuming a credit spread of 550 basis points over Libor and a 35% vol., a Connecticut-based trader said early Tuesday.

A second Connecticut-based market source concurred, saying his valuation assumptions were similar.

The Interactive Group deal was talked at a 1.25% to 1.75% coupon and a 27.5% to 32.5% initial conversion premium and was seen pricing after the market close Tuesday.

Elsewhere, Emerald Oil Inc. was active and moved up on an outright basis by 3 points to 4 points after the Denver-based independent oil exploration and production company said that it plans to price a $150 million secondary offering of common stock.

Proceeds of the common stock deal will be used to fund its previously announced acquisition of certain assets in the Delaware Basin, to repay outstanding credit facility borrowings and for general corporate purposes.

Emerald Oil’s 2% convertibles due 2019 were seen rising to 65 plus from 62, a New York-based analyst said.

Emerald Oil shares were down about a nickel, or 7.6%, at $0.55.

Also Take-Two Interactive Software Inc.’s two convertible bond issues popped in active trade along with higher shares after the New York-based video game publishing company beat profit estimates but missed revenue guidance and also guided higher for the current quarter.

Take-Two’s 1% convertibles due 2018 traded up to 140.158, which was up 11 points, according to Trace data.

Take-Two’s 1.75% convertibles due 2016 traded at 151.88, which was up 16 points outright.

Take-Two’s shares gained $3.83, or 16%, to $28.04.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.