Monster dominates on Randstad buyout; Walter Investment lauds strategic transactions

By Stephanie N. Rotondo

Seattle, Aug. 9 – Monster Worldwide Inc.’s 3.5% convertible notes due 2019 were all the rage in convertibles trading on Tuesday, according to one market source.

The stock was meantime up over 25% as the market reacted to news that Randstad Holding NV was acquiring the job search and staffing services company.

Meanwhile, a trader said Walter Investment Management Corp.’s 4.5% convertible notes due 2019 were pushing higher as well, despite reporting earnings that missed expectations.

However, the company also announced that it had agreed to sell $35 billion in seasoned mortgage servicing rights, as well as substantially all the assets of Walter Capital Opportunity, to New Residential Investment.

Should both transactions close – expected in the third or fourth quarter – it will bring in over $500 million for Walter Investment.

Monster Worldwide’s 3.5% convertible notes bounced around par on Tuesday in the wake of news the company was being acquired by Dutch recruitment company Randstad.

The notes closed just north of par, though a market source saw the issue hitting a low of 99.25 earlier in the day.

The equity underlying the debt experienced a sizable bump, rising 73 cents, or 26.35%, to $3.50.

Randstad will pay $429 million for Monster, or $3.40 per share – a 23% premium over Monday’s closing share price.

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