Morning Commentary: ServiceNow, Teradyne gain post-earnings; TPG adds to new issue pipeline

By Stephanie N. Rotondo

Seattle, Jan. 26 – Fresh earnings were pushing around convertible bonds in early Thursday dealings.

ServiceNow Inc. released results late Wednesday, beating revenue estimates but trailing on a per-share basis. Still, the company’s 0% convertible notes due 2018 – as well as the underlying equity – firmed as management raised its first-quarter guidance.

The convertibles were up nearly 5 points at mid-morning, trading at 133.25, according to a market source. The equity (NYSE: NOW) was up $4.17, or 4.83%, at $90.53.

Teradyne Inc. also came out with earnings, swinging to a profit from the previous year.

The results also beat analysts’ expectations.

In response, the 1.25% convertible notes due 2023 ticked up almost 3 points in early dealings, trading with a 113 handle.

The company’s common shares (NYSE: TER) were up $1.24, or 4.56%, at $28.44.

After the market closes, three deals are expected to price, including one announced early Thursday from TPG Specialty Lending Inc.

The company is offering $100 million of convertible senior notes due 2022, with price talk for a yield of 4.25% to 4.5% and an initial conversion premium of 15%.

BofA Merrill Lynch and Morgan Stanley & Co. LLC are running the books.

Also on tap are deals from Horizon Global Corp. and Virtus Investment Partners Inc.

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