Allegheny Technologies moves back toward par; Salesforce flat to slightly better; Tesla up

By Rebecca Melvin

New York, May 20 – Allegheny Technologies Inc.’s 4.75% convertibles improved slightly on Friday after the $250 million issue put in a weak debut in the convertibles market on Thursday.

Allegheny Technologies’ 4.75% convertibles ended the session at about 99.3 with shares down 2 cents at $11.23. That pricing was stronger compared to earlier in the session when they were quoted at 98.5 to 99 by a New York-based trader, against shares around $11.25 to $11.28. On Thursday the bonds went out at 98.5 to 99 with shares at $11.25.

Salesforce.com Inc.’s 0.25% convertibles due 2018 were firm to slightly better on swap after a 3-point outright jump on Thursday, trading at late morning on Friday at 132.3 according to Trace data. Shares of the cloud software company were up about 0.3% to 0.5% at $81.45.

The Salesforce bond was called better on swap by about 0.125 point at midsession by a New York-based trader. But the shares slipped into the red and closed down 7 cents to $81.02 on the day, with the last print on the bonds down 0.5 point at 131.85.

Salesforce gained this past week after beating earnings estimates and raising its revenue guidance. On Wednesday, the bonds were 128.3 against shares at $77.87.

Micron Technology Inc. was in focus on Friday, and traded better in tandem with a 7% climb in the underlying shares of the Boise, Idaho-based chipmaker. Shares gained following Applied Materials Inc.’s better-than-expected second-quarter results and comments during its earnings call that it is investing in a shift to NAND from DRAM flash memory chips. Both things have positive implications for Micron, Sterne Agee wrote in a note.

Micron’s 3% convertibles due 2043 traded at 67.2, which was up 1.3 points on the day, according to Trace data. Micron shares were up 73 cents, or 7%, to $10.80.

Last autumn the Micron 3% convertibles were at about 90 versus a share price of $16.43.

Micron’s 2.375% convertibles due 2032, or the C series, were indicated up at 130 from about 123 previously, according to a pricing source. The Micron 3.125% convertibles, or the D series, were indicated up at 130.7 from 123.25; the Micron 1.625% convertibles due 2033, or the E notes, were at 122 from 166.4 previously; and the Micron 2.125% convertibles due 2033, or the F notes, were at 121.6, from 117.3 previously.

Also trading actively in Friday’s session were two of Tesla Motors Inc.’s convertible bonds along with stronger shares for the electric car maker.

Tesla’s 1.25% convertibles due 2021 were up 1.5 points to 90.9, according to Trace data, and the Tesla 1.5% convertibles due 2018 were up 2.1 points to 179.4, both on decent volume. And the Tesla 0.25% convertibles due 2019, which didn’t trade actively, were at 94.58 last. Tesla shares rose $5.07, or 2.4%, at $220.28 in strong volume.

Mentioned in this article:

Allegheny Technologies Inc. NYSE: ATI

Micron Technology Inc. NYSE: MU

Salesforce.com. Inc. NYSE: CRM

Tesla Motors Inc. Nasdaq: TSLA

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