Midday Commentary: New Citrix adds out of the chute; Tesla Motors down with shares

By Rebecca Melvin

New York, April 25 - Citrix Systems Inc.'s newly priced 0.5% convertibles traded up out of the chute on Friday after the Fort Lauderdale, Fla.-based cloud computing solutions company priced $1.25 billion of the five-year senior notes at the midpoint of talk late Thursday, market sources said.

The Citrix 0.5% bonds were seen at 100.5 bid, 101 offered with the underlying shares down fractionally, a syndicate source said.

The bonds were allocated to hedged and outright players on about a 50:50 basis. They were seen on a 51.6% hedge on swap, a New York-based trader said.

Citrix shares were last down 14 cents, or 0.23%, at $59.86.

"They were higher out of the gate. I think they have slowed down now," the syndicate source said.

Elsewhere, trading was quiet as equity markets were lower.

Tesla Motors Inc.'s trio of convertible bonds were active. Tesla's 1.25% convertibles due 2021, or the B tranche, printed down 1.5 points to 89.875. The Tesla 0.25% convertibles due 2019, or the As, traded down 0.75 point to about 91.75 in what appeared to be less active trade, compared to 92.5 at the end of Thursday.

Tesla's more established 1.5% convertibles due 2018 printed at 173.56, which was down 6.3 points on the day, according to Trace data.

Tesla shares were off $7.96, or 3.8%, at $199.90 in the early going.

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