New Tyson trades around par amid rattled markets; existing Qihoo drops; Hornbeck adds

By Rebecca Melvin

New York, July 31 – Tyson Foods Inc.’s newly priced 4.75% tangible equity units traded higher before the market open on Thursday but slipped with the broader markets at the open to trade around par, a syndicate source said.

Tyson priced $1.5 billion of the units at the rich end and beyond the rich end of originally talked terms, and it also priced $900 million of common stock.

But in the broader markets both credit and equity were under pressure Thursday after news that Argentina was deemed to be in default on its bond payments and Portugal’s Banco Espirito Santo posted an outsized net loss, sending its shares plummeting 50%.

For the day, the S&P 500 stock index fell 39.40 points, or 2%, to 1,930.67; the Dow Jones industrial average fell 317.06 points, or 1.9%, to 16,563.30, and the Nasdaq composite index dropped 93.13 points, or 2%, to 4,369.77.

Elsewhere in convertibles, Qihoo 360 Technology Co. Ltd.’s existing 2.5% convertibles came in about 2 points on a hedged basis early Thursday after the China-based provider of PC and mobile internet security products launched a new, dual-tranche deal for $900 million of convertibles.

But Hornbeck Offshore Services Inc.’s 1.5% convertibles improved in trade on a hedged basis on Thursday after the Covington, La.-based provider of offshore supply vessels posted second-quarter earnings that beat estimates.

© 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.