Morning Commentary: Jakks, Vitamin Shoppe eyed after earnings; SanDisk off on lowered deal price

By Rebecca Melvin

New York, Feb. 23 – The convertibles of Jakks Pacific Inc. and Vitamin Shoppe Inc., among other convertible issuers, were being eyed early Tuesday after those companies posted mixed earnings reports.

But the convertibles of Jakks Pacific, a Malibu, Calif.-based toy and leisure products company, were not seen in trade, as underlying shares dropped 17%.

Likewise, Vitamin Shoppe’s 2.25% convertibles due 2020, of which about $140 million priced in December, were not yet heard in trade as shares moved down 7%.

SanDisk Corp. was getting a look after news that Western Digital is cutting its offer for SanDisk by about 9% to $15.8 billion, or $78.50 a share in cash and stock, after losing its $3.78 billion infusion from China’s Unisplendour outfit.

SanDisk’s 1.5% convertibles due 2017 traded down about a point from Monday to 142.68, according to Trace data.

SanDisk shares were off $1.48, or 2%, to $66.22 in early trading.

The SanDisk news was not considered a credit issue. “It’s more an issue of if the deal will get done or not. There is still risk there. On top of that, if the deal breaks, then where does the stock go? It’s hard to tell,” a New York-based convertibles analyst said.

© 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.